Marshalls plc (LON:MSLH), the diversified building products manufacturer and sustainable solutions provider for the built environment, has announced its results for the year ended 31 December 2025.
Financial summary
| £’M | 2025 | 2024 | Change |
| Revenue | 632.1 | 619.2 | 2% |
| Adjusted results (Notes 1 and 2 below) | |||
| Adjusted EBITDA | 85.0 | 97.8 | (13%) |
| Adjusted operating profit | 56.4 | 66.7 | (15%) |
| Adjusted profit before tax | 43.7 | 52.2 | (16%) |
| Adjusted basic EPS – pence | 13.4 | 16.0 | (16%) |
| Adjusted annualised ROCE (%) | 7.0 | 8.2 | (1.2 ppts) |
| Final dividend (proposed) – pence | 4.5 | 5.4 | (17%) |
| Total dividend (proposed) – pence | 6.7 | 8.0 | (16%) |
| Pre-IFRS 16 net debt | 137.9 | 133.9 | 3% |
| Reported results | |||
| Operating profit | 32.0 | 53.9 | (41%) |
| Profit before tax | 17.7 | 39.4 | (55%) |
| Basic EPS – pence | 5.7 | 12.3 | (54%) |
Resilient in-line performance
| · | Group returned to revenue growth and delivered adjusted profit before tax in-line with market expectations1 |
| · | Landscaping Products improvement plan delivered higher volumes and market share gains despite subdued end markets, offset by targeted price investment and a weaker product mix |
| o Strengthened customer relationships beginning to deliver, with 4% volume growth outperforming a flat marketo Decisive actions taken to right-size capacity, optimise the network, reduce portfolio complexity and tighten commercial practices to deliver profitably at current levels of demando On track to deliver £11 million of annualised cost savings by the end of 2026 | |
| · | Building Products delivered revenue growth of 4% with good performances in Water Management and Mortars |
| o Good progress on strategic growth opportunities in Water Management | |
| · | Roofing Products revenue growth of 4% driven by c.32% growth in Viridian Solar as it capitalised on new build energy efficiency regulations |
Strong financial position supporting growth ambitions
| · | Robust balance sheet with year-end pre-IFRS16 net debt of £137.9 million and leverage of 1.8 times pre-IFRS 16 adjusted EBITDA |
| · | Adjusted operating cashflow conversion of 88% reflects disciplined working capital management |
| · | Successfully refinanced the £270 million facility in November with no change in commercial terms, reinforcing the medium-term funding platform and providing flexibility to continue executing the strategy at pace |
Clear plan to intensify the execution of ‘Transform & Grow’
| · | Greater discipline and focus on executing near-term priorities to build on early progress |
| · | Concentrating resources on the priorities that will improve margin, cash and service outcomes by |
| o Being selective with the activities that we undertake | |
| o Building an organisation focused on delivery | |
| o Strengthening our commercial discipline |
Current trading and outlook
| · | Market activity levels in the first two months of 2026 remained consistent with the close of 2025, although they were affected by persistent rainfall. |
| · | Against this backdrop, our priority for 2026 is the disciplined implementation of the ‘Transform & Grow’ strategy. This will be underpinned by sharper execution through intensifying our pace, tightening our focus and embedding performance, ensuring teams throughout our businesses are aligned behind priorities that will improve margin, cash and service outcomes. |
| · | The Board is mindful of the conflict in the Middle East. However, in the absence of clarity on the impact of the conflict on our end markets and cost base, our expectations for the year remain unchanged and the Board is confident of driving a material increase in profitability and returns over the medium-term. |
1 Company compiled consensus for adjusted profit before tax for 2025 is £43.5 million with a range of £42.0 million to £44.1 million.
Simon Bourne, Chief Executive Officer, commented:
“We have acted decisively to strengthen Marshalls’ foundations as part of our ‘Transform and Grow’ strategy. These actions have resulted in a sharper focus on execution with greater emphasis on delivery and commercial discipline alongside more value-driven activity across the business. We are not simply waiting for a cyclical recovery. As a result, the business has returned to revenue growth while adjusted profit before tax was in line with the guidance set out in July last year.
In Landscaping Products, we have made significant progress on our near-term improvement plan and put the building blocks in place to support a material increase in operating margins. In Roofing and Building Products, we have continued to position the business to capture regulatory and infrastructure-led demand.
Our strategic direction remains unchanged, and our immediate focus is on executing against our plan with greater discipline, in order to deliver sustainable, profitable growth over the medium term.”
There will be a live presentation today at 10am at the offices of Peel Hunt for analysts and investors, which will also be webcast live. The presentation will be available for analysts and investors who are unable to view the webcast live and can be accessed on Marshalls’ website at www.marshalls.co.uk. Users can register to access the webcast using the following link: https://brrmedia.news/MSLH_FY25
Notes:
| 1. | The results for the year ended December 2025 have been disclosed after adding back adjusting items. These are set out in Note 4. |
| 2. | This Preliminary Announcement includes alternative performance measures (‘APMs’), which are not defined or specified under the requirements of International Financial Reporting Standards. The Board believes that these APMs provide stakeholders with important additional information on the Group. To support this, we have included an accounting policy note on APMs in the Notes to this Preliminary Announcement, a glossary setting out the APMs that we use, how we use them, an explanation of how they are calculated, and a reconciliation of the APMs to the statutory results, where relevant. See Notes 4 and 19 for further details. |
