3i Group reports higher FY2027 first-quarter NAV as Action sales and EBITDA grow

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3i Group FY2027 NAV growth

Highlights

3i Group reports a 3% total return for the quarter ended 30 June 2026, with Action driving performance despite a £276 million foreign exchange impact.
Action grows net sales to €8,348 million and operating EBITDA to €1,108 million for the six months to 28 June 2026, up 14% and 13% respectively year-on-year.
3i values its 65.4% stake in Action at £24,249 million as of 30 June 2026, while executing £344 million in share buybacks and maintaining gross cash of £724 million.

Quarterly performance and portfolio drivers

As reported by London Stock Exchange, citing the Regulatory News Service, 3i Group says it delivers a 3% total return for the three months to 30 June 2026, despite a negative foreign exchange translation impact of £276 million, or 27 pence. The company says Action remains the main driver, with strong trading in the six months to 28 June 2026 and further support from its infrastructure holdings and private equity portfolio.

For the six months ending 28 June 2026, Action generates net sales of €8,348 million and operating EBITDA of €1,108 million, up 14% and 13% from a year earlier. Like-for-like sales growth stands at 3.6%, driven mainly by higher customer transactions, while the second quarter also records 3.6% like-for-like growth against a strong comparative period last year.

In the quarter covering P4 to P6 2026, Action posts net sales of €4,338 million and operating EBITDA of €609 million, compared with €3,819 million and €516 million a year earlier. The chain ends P6 2026 with 3,423 stores after adding 121 net new outlets in six months, and 3i says it remains on track to meet its target of adding at least 400 stores this year.

Action pays a €450 million dividend to shareholders in May 2026, of which 3i receives £254 million. After that payment, Action closes the period with €718 million in cash and a net debt to run-rate EBITDA ratio of 2.7x, down from 2.8x at the end of March 2026.

3i also says Royal Sanders and the rest of its private equity portfolio continue to trade in line with expectations. During the period, the group makes a new £118 million private equity investment in Nutergia, while 3i Infrastructure plc records a 13% increase in share price in the quarter and contributes a dividend of £18 million to 3i.

Capital returns and balance sheet position

Alongside portfolio performance, 3i continues its capital return programme and says its balance sheet remains strong at the end of the quarter. Gross cash stands at £724 million and gearing is 2%, giving the group financial flexibility as it advances both shareholder returns and new investments.

The share buyback programme, launched on 14 May 2026, totals up to £750 million and is due to be completed no later than the end of December 2026. As of 21 July 2026, about 14.7 million shares have been purchased and cancelled for about £344 million.

At 30 June 2026, 3i values Action using last-12-month run-rate EBITDA to 28 June 2026 of €2,730 million and an unchanged multiple of 18.5x, net of the liquidity discount. That results in a valuation of £24,249 million for 3i's 65.4% equity stake in the retailer.

Chief Executive Simon Borrows says Action continues its growth trajectory, supported by seasonal products and solid sales in FMCG categories. He also says the private equity portfolio shows resilience, while the progress of the buyback reflects 3i's focus on capital discipline and shareholder value.

Shell’s share buyback and related technical outlook were the focus of our earlier coverage, highlighting the repurchase and cancellation of 75,000 shares and how reducing the float can support per-share metrics. We also noted the stock’s bullish momentum above key moving averages, with a near-term consolidation range in view unless resistance levels are broken.

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