Why This Matters to Distributors: Growth is concentrating in U.S. end markets tied to data centers, electrification, and infrastructure, while pricing and digital tools are helping distributors manage uneven demand and rising costs.
Rexel reported a return to growth across all major regions in the first quarter, led by strong demand in the United States and Canada tied to data centers and infrastructure.
The Paris-based distributor said April 22 those sales reached €4.74 billion (about $5.1 billion) in the quarter ended March 31, with growth of 3.4% on a same-day basis. It marked the first time in 11 quarters that all three regions posted growth simultaneously.
North America led by performance, with sales rising 5.8% on a same-day basis. The United States, which accounts for about 82% of the region’s sales, grew 5.1%, driven by demand in data centers, broadband infrastructure and nonresidential markets including hospitals, mining, and water systems.
Canada posted 9.1% growth, supported by large project activity, including data center work that now represents 10% of sales in that market.
CEO Guillaume Texier said the United States and Canada remain the company’s primary growth engine, supported by momentum in higher-growth segments tied to electrification and digital infrastructure.
Rexel also reported a rising project pipeline in North America. Backlog increased to the equivalent of about 2.8 months of sales at the end of March, providing improved visibility into near-term demand.
Digital adoption accelerated in the region, with digital sales reaching 28% of North America revenue, up more than 500 basis points from a year earlier, driven by increased use of online ordering and customer tools.
Europe returned to growth, with sales up 0.6% on a same-day basis as residential and industrial markets stabilized. The company cited increased demand for energy efficiency solutions, supported by higher energy costs and government electrification programs.
Asia-Pacific delivered the fastest growth, with sales up 11.4%, led by solar and battery demand in Australia and continued gains in industrial automation in China and India.
Volumes remained uneven across regions. The company cited weather disruptions in North America and Europe, along with the timing of large projects, as factors that temporarily weighed on activity during the quarter.
Pricing supported overall performance. Rexel said higher prices for cable and noncable products contributed to growth, reflecting its ability to pass through rising input costs, including those tied to tariffs.
Digital sales accounted for 36% of total company revenue, up 217 basis points from a year earlier, as the company continued to expand its ecommerce capabilities.
On April 20, Rexel completed the acquisition of Techno-Contact 360 in Canada, strengthening its capabilities in industrial automation, data centers, and services.
Looking ahead, the company said demand tied to data centers, electrification and infrastructure investment is expected to support growth, even as tariffs and geopolitical tensions create uncertainty.
Rexel also said it is expanding its use of artificial intelligence tools to improve sales effectiveness and identify growth opportunities.
The company confirmed its full-year outlook, calling for 3% to 5% same-day sales growth.
For distributors, the results underscore a familiar pattern. The U.S. market is driving growth, but gains are concentrated in specific end markets, particularly those tied to digital infrastructure and the energy transition.
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