AO World Earnings Preview: Profit Growth to Outpace Sales

AO World (LON: AO.) will report its full-year results for the 12 months to March 31, 2026, on Wednesday, with analyst consensus pointing to revenue of £1,258.7 million for the period and £1,335.0 million for FY2027.

The UK electrical retailer’s full-year trading update in April pointed to a strong finish to the year, with total group revenue growth expected at approximately 11% and B2C growth of around 9.5%, underpinned by market share gains across all key categories.

Adjusted profit before tax was guided to come in at the top end of £45-£50 million, representing roughly 15% year-on-year growth and continuing a trend of profits growing faster than sales despite cost headwinds.

The company also highlighted its hedging position heading into FY27, with arrangements covering approximately 80% of forecast fuel usage and 100% of electricity usage already in place ahead of recent geopolitical developments.

Liquidity at the period end was expected to be around £200 million, with free cash flow projected at approximately £65 million, up sharply from £23 million in FY25.

Founder and CEO John Roberts said the company’s “shared economics strategy and membership model” continues to deliver results, with all key metrics improving. He also noted AO is on track to become the first company globally to reach one million Trustpilot reviews, with a 4.9 rating.

AO World shares are down 16.5% year-to-date and down 5.7% over the past 12 months, though the stock has gained more than 10% over the past month, suggesting renewed investor optimism heading into Wednesday’s results.