# Travis Perkins reports resilient first-half performance and stronger balance sheet

- Link: https://www.directorstalkinterviews.com/travis-perkins-reports-resilient-first-half-performance-and-stronger-balance-sheet/4121259167
- Published: 2026-08-04T07:33:46+01:00
- Author: Ethan Davis

**Travis Perkins Plc** (LON:TPK), the UK’s largest distributor of building materials,
has announced its half year results for the 6 months to 30 June 2026

**Resilient performance with early progress in General Merchant turnaround**

●  Group revenue declined (1.8)% driven by a reduction in volumes in challenging
market conditions and the prior year disposal of Staircraft, partially offset by
building material price inflation

●    Adjusted operating profit excluding property profits held steady at £62m (2025:
£62m); Statutory operating profit of £65m (2025: £59m)

●  Encouraging early progress in expanding gross margin in the General Merchant,
delivered through more effective pass-through of price inflation, favourable sales
mix and procurement gains

●   Toolstation UK is performing in line with expectations with further growth in
revenue, operating margin and return on capital employed. Trading in Toolstation
Benelux remains challenging

●   Specialist businesses showing resilience with weakness in the new-build market
partially offset by improving demand for infrastructure projects

**Continued financial strengthening**

●    Strong cash generation driven by working capital discipline, rigorous capital
allocation and active management of the property portfolio

●   Significantly strengthened balance sheet with net cash before leases of £55 
million (2025: £103 million net debt)

●    Net debt / adjusted EBITDA 1.9x (2025: 2.3x), back within the Group’s target
range of 1.5x-2.0x

●    Interim dividend of 4.0p per share, reflecting the Group’s dividend policy

| £m _(unless otherwise stated)_ | _Note_ | **H1 2026** | H1 2025 | _Change_ | 
| Revenue | _2_ | **2,258** | 2,300 | _(1.8)%_ | 
| Adjusted operating profit¹ | _16a_ | **67** | 63 | _6.3%_ | 
| Adjusted operating profit excluding property profits¹ | _16c_ | **62** | 62 | _–_ | 
| Adjusted earnings per share¹ | _10b_ | **15.1p** | 13.3p | _13.5%_ | 
| Return on capital employed¹ | _16d_ | **5.7%** | 4.9% | _0.8ppt_ | 
| Net debt / adjusted EBITDA¹ | _16b_ | **1.9x** | 2.3x | 0.4x | 
| Ordinary dividend per share | _11_ | **4.0p** | 4.5p | _(11.1)%_ | 
| Operating profit |  | **65** | 59 | _10.2%_ | 
| Profit after tax |  | **30** | 26 | _15.4%_ |

_¹ Alternative performance measures are used to describe the Group’s performance.
Details of calculations can be found in the notes listed._

> **CEO Gavin Slark commented:**
> “I have enjoyed my first half since joining as CEO in January. I have developed
> a clear understanding of our many strengths, but also where we need to improve
> if we are to restore the Group’s financial performance and reach our potential.
> We have built on the operational progress made last year, with a new senior leadership
> team in place and a clear set of priorities. This stability and focus is serving
> us well as we implement further change. We have made encouraging early progress
> in rebuilding profitability in the General Merchant and Toolstation UK continues
> to perform in line with our expectations. We continue to place the customer back
> at the heart of the business, recognising the value of strong relationships and
> the importance of providing great service.
> Our financial position continues to strengthen and is providing us with the flexibility
> to invest where we see the best opportunities ahead of any market recovery.
> I would like to thank all our colleagues for their dedication and commitment during
> the first half. We can be confident and optimistic about our future prospects.”

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