Grafton launches new buyback scheme, lifts dividend on 'upbeat' view

Grafton Group PLC on Thursday shared an ‘upbeat’ outlook, raising its annual payout and outlining a new buyback scheme.

The Dublin-based building materials distributor’s revenue rose to £2.52 billion in 2025 from £2.28 billion in 2024.

Pretax profit advanced to £165.1 million from £152.5 million, while adjusted operating profit grew to £190.2 million, up from £177.5 million on-year and ahead of company-compiled consensus, which had put the figure at £181.8 million.

According to Grafton, the improvement was driven by the first full year’s contribution of Salvador Escoda SA. It acquired the Barcelona-based air conditioning, ventilation, heating, water and renewable products distributor for €132.0 million back in October 2024.

The company has raised its final dividend to 27.0 pence per share from 26.50p, which brings the total dividend to 37.75p, up 2.0% from 37.0p in 2024.

Also on Thursday, Grafton launched a new buyback programme for up to £25 million, due to end by August 31.

The company’s shares traded 3.9% higher at 959.90p around noon on Thursday in London.

Chief Executive Eric Born said the company had continued to prioritise ‘margin management’, noting: ‘Grafton’s resilience in 2025 points to substantial profitability upside as demand recovers in weaker markets and as we scale our presence organically and through complementary acquisitions.

‘We are very encouraged by our strong acquisition pipeline, supported by our highly cash generative business...We expect continued growth in the Island of Ireland and Iberia however elsewhere market conditions remain mixed. Though market improvement in Great Britain and Northern Europe is expected to be gradual, we remain upbeat on outlook over the medium term based on structural demand tail winds, positive operating leverage and the scalability and efficiency of our businesses as markets normalise.’

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