3i Group PLC shares surged 13.5% following a robust performance report from its largest holding, Action, marking a strong start to 2026. Action generated net sales of €16 billion and operating EBITDA of €2.37 billion for the 52 weeks to December 28, 2025, showing 16% and 14% year-over-year growth, respectively. Despite challenges in France, Action's like-for-like (LFL) sales growth reached 4.9% for the year, though lower than the previous year's 10.3%.

The retail environment presented some headwinds, with mid-single digit LFL sales decreases in France during October and November 2025. However, performance recovered to flat in December and improved to 2.1% LFL growth in the first four weeks of January 2026. Overall, Action's LFL sales growth reached 6.1% in the first period of 2026. This resilience signals a positive outlook for the discount retailer, which expanded its footprint to 3,302 stores across 14 countries by adding a record 384 net new stores in 2025.

3i Group reported a net asset value per share increase to 3,017 pence, up from 2,857 pence at the end of September. The total return for the nine months to December 31, 2025, was 20%, including a positive foreign exchange translation impact of £766 million. The company also announced plans to increase its stake in Action to 65.3% following an agreement with GIC to purchase an additional 2.9% interest, valued at approximately £1 billion. This strategic move underscores Action's importance to 3i's portfolio.

Looking ahead, investors will watch how 3i continues to capitalize on Action's growth and navigate potential challenges in key markets. The company's strong balance sheet, with gross cash of £995 million and gearing of just 1%, provides a solid foundation for further investment and expansion. With a proven track record of delivering strong returns, 3i Group is well-positioned to maintain its upward trajectory in 2026.