3i Group’s NAV jumps to 3,017p as Action powers another strong quarter
3i Group has put in another robust quarter, driven – once again – by Action. Net asset value (NAV) per share rose to 3,017 pence at 31 December 2025 (from 2,857 pence at 30 September 2025), delivering a 20% total return for the nine months. Foreign exchange helped, with a £766 million translation gain adding 78 pence per share.
The picture is one of disciplined compounding: strong portfolio trading, healthy cash generation, tight balance sheet and continued conviction in the crown jewel. There are a few watch-outs, but the direction of travel remains positive.
Key numbers at a glance
| Metric | Figure |
|---|---|
| NAV per share (diluted) | 3,017 pence at 31 Dec 2025 |
| Total return (nine months) | 20% |
| FX translation impact | £766 million (78 pence) |
| Action net sales (2025) | €16,000 million |
| Action operating EBITDA (2025) | €2,367 million; margin 14.8% (15.0% normalised) |
| Action LFL sales growth (2025) | 4.9% (6.1% for P1 2026) |
| Action store growth (2025) | +384 net stores to 3,302 |
| 3i stake in Action | 62.3% at 31 Dec 2025; agreed to rise to 65.3% |
| Cash and liquidity | Gross cash £995 million; liquidity £2,195 million |
| Gearing | 1% |
| Q3 realisations | £1,112 million (incl. £147 million MAIT disposal) |
| Q3 investment | £825 million |
| 3i Infrastructure plc | Share price up 3% to 374 pence; £18 million dividend |
Action remains the engine room – and 3i is doubling down
Action, the general merchandise discount retailer, delivered another excellent year. Net sales grew 16% to €16,000 million and operating EBITDA rose 14% to €2,367 million, with a 14.8% margin or 15.0% when normalised for a one-off €26 million staff payment marking the 3,000th store. Like-for-like (LFL) sales growth was 4.9% – slower than 2024’s 10.3% but impressive given four years of 56% compound LFL growth.
LFL growth was volume-led and broad-based across markets. Ex-France, Action posted 7.2% LFL, with standout momentum in Southern Europe and solid performances in the Netherlands, Poland and Austria. Germany was over 4%. France was softer due to consumer caution, ERP migration impacts and heavier promotions, but it improved from mid-single digit LFL declines in October and November to flat in December and 2.1% growth in the first four weeks of January 2026.
Importantly, Action added a record 384 net stores in 2025, taking the footprint to 3,302 across 14 countries. New stores are profitable and outperforming expectations, including in newer markets like Switzerland and Romania. Q4 saw net sales of €4,771 million and operating EBITDA of €805 million – a strong seasonal quarter despite warmer weather and a later start to festive trading.
Valuation, stake build and cash returns
3i valued Action at a post-discount multiple of 18.5x run-rate EBITDA of €2,628 million, giving a £22,382 million valuation for its 62.3% stake at 31 December 2025. The multiple was unchanged. Following an October capital restructuring, 3i received £944 million of gross proceeds and redeployed £755 million to lift its stake by 2.2%. Action also paid 3i a £246 million dividend in December and ended 2025 with €807 million of cash and net debt to run-rate EBITDA of 2.8x.
There’s more: in January 2026, 3i agreed to acquire a further c.2.9% of Action via the issue of 31,353,859 new shares in 3i Group PLC, equivalent to £1 billion of consideration. On completion, total ordinary shares in issue will be 1,025 million (1,019 million diluted), and 3i’s Action stake will rise to 65.3%. That is a clear statement of conviction.
Beyond Action: steady contributions and selective growth
Elsewhere, the consumer and private label names continued to pull their weight. Royal Sanders performed strongly and completed the bolt-on acquisition of Vendoleo; 3i also invested a further £56 million in December. Audley Travel saw sustained strong year-on-year departures.
Healthcare showed stabilising or improving trends after last year’s sector headwinds. SaniSure was “largely solid” with uptake of new platform products, and Cirtec is supporting several new commercial programmes while managing some transition challenges. Luqom maintained growth and profitability despite a subdued online lighting market. Services and software and industrials were mainly stable. Wilson, in recruitment, remains challenged.
Leverage and valuations
Net debt to EBITDA across the Private Equity portfolio increased to 3.0x (from 2.6x at 30 September 2025). Excluding Action, it was 3.6x (from 3.5x). 3i made no changes to portfolio valuation multiples in the period and noted stable quoted comparables. The top 10 investments comprised 91% of the £30,309 million total investment portfolio value – concentration remains a theme.
Cash generation, recycling and infrastructure income
3i was busy on the recycling front in the quarter, realising £1,112 million including £944 million from Action and £147 million from the disposal of MAIT. MAIT delivered a 34% uplift on its 31 March 2025 valuation, a 2.8x money multiple and a 28% IRR. There was also a £20 million distribution from Yanga. On the investment side, 3i deployed £825 million, primarily into Action and Royal Sanders, plus £10 million into ten23 health.
3i Infrastructure plc (3iN) ticked up 3% in the quarter to 374 pence, valuing 3i’s 29% stake at £1,006 million, and paid an £18 million dividend. Dividends noted elsewhere included Scandlines (£12 million), AES (£6 million) and Tato (£10 million).
Balance sheet, FX and dividend mechanics
The balance sheet looks strong: gross cash of £995 million, liquidity of £2,195 million including an undrawn £1,200 million RCF, net debt of £216 million and gearing of 1%. The diluted NAV per share was 3,017 pence, or 2,980.5 pence after deducting the 36.5 pence per share (£357 million) first FY2026 dividend paid on 9 January 2026.
FX was a tailwind over nine months, with sterling 4% weaker against the euro and 4% stronger against the US dollar, producing a £766 million net gain. Sensitivity remains material: a 1% move in the euro and US dollar would impact total return by £228 million and £12 million respectively, including hedging.
What this means for shareholders
In simple terms: 3i continues to compound value efficiently. Action’s growth, cash generation and store economics are the core driver, and 3i is leaning in by increasing its stake. The portfolio beyond Action is contributing, particularly in consumer and private label, and the group is generating cash while keeping balance sheet risk low.
The risks are clear enough. Concentration in Action is high, French consumer sentiment is softer (albeit improving), and portfolio leverage has nudged up. Action’s EBITDA margin dipped to 14.8% from 15.1%, though the normalised margin was 15.0% and Q1 trading has started well with 6.1% LFL in P1.
My take: a strong update with eyes on France and valuation discipline
This is another strong update. NAV up to 3,017 pence, a 20% total return year-to-date, record store openings and continued cash returns make for compelling reading. Keeping the Action multiple at 18.5x and highlighting stable comparables shows valuation discipline, while liquidity and gearing give ample room to manoeuvre.
Key things to watch next: the completion of the GIC transaction on 30 January 2026, the Action Capital Markets Seminar in March 2026 for 2026 guidance, and ongoing trends in France. For now, momentum – and management conviction – remain firmly on side.
Quick jargon check
- NAV per share: the value of all assets minus liabilities, divided by shares – a core measure of value for investment groups.
- EBITDA: earnings before interest, tax, depreciation and amortisation – a proxy for operating profit.
- LFL (like-for-like): sales growth from stores open at least 12 months, stripping out new openings.
- Run-rate EBITDA: last 12 months EBITDA adjusted for the impact of stores opened in the period.
- Gearing: net debt as a percentage of the investment portfolio value – lower means less balance sheet risk.
