Grafton backs 2026 view as revenue rises despite "weakness" in Britain
Grafton Group PLC on Monday reported a rise in first-half revenue and backed profit guidance for 2026.
The building materials distributor said revenue in the first half of the year climbed 6.7% to £1.34 billion from £1.25 billion. Revenue was 4.7% higher on a constant currency basis.
Average daily like‑for‑like revenue rose 0.6% on-year in the first half, the Dublin-based firm said, "as growth in Iberia, the Island of Ireland and Northern Europe offset weak markets in Great Britain".
Grafton said: "Average daily like-for-like revenue in Great Britain declined by 5.1% in the first half compared with the prior year, reflecting continued weakness across construction markets. Market conditions remained challenging throughout the period, with subdued construction activity and heightened economic and geopolitical uncertainty continuing to weigh on consumer confidence and investment decisions. All businesses have responded to challenging market conditions through active cost management and ongoing efficiency initiatives."
In the second quarter alone, average daily like‑for‑like revenue rose 1.7% on-year, after a 0.5% decline in the first three months of the year.
The company added: "The group has experienced no material disruption from geopolitical developments in the Middle East and continues to proactively manage supply chain risks to maintain strong stock availability. Management remains focused on cost discipline and margin management."
Grafton expects trading conditions in the second half to be "broadly consistent" with the first. It still expects adjusted operating profit in the range of £190 million and £200 million. In 2025, it achieved an adjusted operating profit of £190.2 million. It puts consensus for 2026 at £193.7 million.
"In Northern Europe, market conditions are expected to remain subdued, and the timing of a sustained recovery in Finland and the Netherlands remains uncertain. In Great Britain, market conditions are expected to remain challenging, with no meaningful improvement anticipated in the near term.
"While geopolitical uncertainty and related inflationary and supply chain risks persist, the medium-term outlook for Grafton remains positive. Structural housing undersupply across its markets and an anticipated recovery in [repair, maintenance and improvement] demand after an extended period of restrained consumer spending provide supportive growth drivers," it added.
Shares in the company rose 1.3% to 890.40 pence each in London on Monday morning.
The firm releases half-year results on September 3.
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