Marshalls sees profit upturn but says timing of recovery 'uncertain'
Marshalls PLC on Monday said construction demand remains subdued, as it reported a lower dividend as profits slumped.
The Yorkshire, England-based maker of hard landscaping products said pretax profit fell 55% to £17.7 million in 2025 from £39.4 million in 2024.
Revenue climbed 2.1% to £632.1 million from £619.2 million, but net operating costs grew 6.2% to £600.1 million from £565.3 million.
Basic earnings per share declined 54% to 5.7 pence from 12.3p.
‘2025 saw a continuation of the trends experienced in recent years with subdued activity in UK housing and discretionary home improvement spending,’ Marshalls said in a statement.
Marshalls said adjusted pretax profit fell 16% to £43.7 million from £52.2 million, a touch ahead of company compiled consensus of £43.5 million.
Shares in Marshalls rose 0.5% to 143.15 pence each in London on Monday morning.
Chief Executive Officer Simon Bourne said: ‘We have acted decisively to strengthen Marshalls’ foundations as part of our ’Transform and Grow’ strategy.’
‘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,’ he added.
The firm said Landscaping Products delivered higher volumes and market share gains despite subdued end markets, but this was offset by price investment and a weaker product mix.
The division is on track to deliver £11 million of annualised cost savings by the end of 2026, Marshalls added.
Building Products delivered revenue growth of 4% with good performances in Water Management and Mortars.
Roofing Products revenue growth of 4% was driven by 32% growth in Viridian Solar as it capitalised on new build energy efficiency regulations.
Marshalls lowered the final dividend by 17% to 4.5 pence per share from 5.4p. The total dividend for the year is 6.7p, down 16% from 8.0p.
Looking ahead, Marshalls said in the near term, UK construction demand remains subdued, and the timing of recovery is uncertain.
The FTSE 250 listing said market activity levels in the first two months of 2026 are consistent with the end of 2025, but were affected by ‘persistent rainfall’. The firm also 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,’ Marshalls adds.
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