Grafton edges up dividend as interim revenue rises but profit slips

Grafton Group PLC on Thursday maintained its full-year adjusted operating profit guidance, after reporting increased adjusted earnings for the first half.

The Dublin-headquartered building materials distributor's revenue for the first six months of 2026 totalled £1.34 billion, up 6.7% from £1.25 billion the prior year.

Grafton noted "strong underlying trading and acquisition contributions on the island of Ireland and in Iberia [which] more than [offset] challenging market conditions elsewhere, particularly in Great Britain." Trading in Great Britain suffered from "weak construction activity, subdued consumer confidence and heightened economic and geopolitical uncertainty continuing to weigh on demand", the company said.

Pretax profit fell 6.9% to £77.7 million from £83.5 million, while operating profit fell 5.4% to £82.9 million from £87.7 million.

Grafton booked no income from exceptional items, against £7.8 million the year before. Costs from acquisition-related items surged on-year to £3.2 million from £383,000, and amortisation of intangible assets arising on acquisitions increased to £12.4 million from £10.8 million.

Adjusted operating profit, which excludes exceptional items and other measures, climbed 8.2% to £98.5 million from £91.0 million. Adjusted operating profit before property profit rose 8.0% to £98.3 million from £91.0 million. Adjusted pretax profit increased 7.1% to £93.0 million from £86.8 million.

Grafton declared an 11.00 pence per share interim dividend, up 2.3% from 10.75p a year before.

Looking ahead, Grafton maintained its full-year adjusted operating profit guidance of £190 million to £200 million. Company-compiled analyst consensus forecasts around £194.2 million, within a range of £191.0 million to £199.0 million.

"Despite a relatively slow start to the year, we are pleased to have grown revenue, adjusted operating profit and margin in the first half of 2026 and to be in a position to reaffirm that we remain on track to deliver full year adjusted operating profit...whilst recognising the important Autumn trading season is still to come," commented Chief Executive Officer Eric Born.

He continued: "Our outlook for the second half is not dissimilar to H1, with Iberia and Island of Ireland strong, Northern Europe mixed and continuing weakness in Great Britain.

"Our medium-term outlook remains very positive supported by structural housing deficits in each of our markets and, in many cases, pent up demand for [repair, maintenance & improvement]."

Grafton shares, having opened 2.6% higher, were down 1.6% at 995.40 pence by midday Thursday in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.