Travis Perkins says trading remains subdued as sales stagnate in 2025

Travis Perkins PLC on Tuesday cut its dividend as losses widened amid a subdued housing market.

The Northampton-based building materials company said its loss widened to £134.7 million in 2025 from £38.4 million in 2024.

Basic loss per share stretched to 83.3 pence from 36.6p a year prior.

Profit was hit by a 60% increase in adjusting items to £222.2 million from £139.1 million, mainly reflecting impairments at the firm’s Merchanting and Toolstation Europe businesses.

Adjusted operating profit fell 13% to £133 million from £152 million, reflecting lower margins in Merchanting.

Strong progress in Toolstation UK was seen with adjusted operating profit increasing 29% to £44 million.

Revenue fell 0.9% to £4.56 billion from £4.61 billion.

The decline in revenue was driven by the Merchanting segment with activity across the majority of end markets remaining subdued throughout the year, the firm said in a statement.

More positively, Travis Perkins said Merchanting saw a sequential improvement in the second half of 2025.

Travis Perkins declared a final dividend of 7.5p per share, down 17% from 9.0p a year ago. This gives a full year dividend of 12.0p per share, down 17% from 14.5p.

Travis Perkins said this is in line with its policy to pay a dividend between 30% and 40% of adjusted earnings.

Chief Executive Gavin Stark, who joined Travis Perkins in January, said the firm will ‘maintain our disciplined and selective approach to capital allocation as we navigate our way back to better market conditions.’

The FTSE 250 listing said the trading environment since the start of 2026 has remained subdued and this reflects a continuation of the weak UK construction activity figures reported for the final quarter of 2025.

CEO Stark said: ‘I have no doubt that we can restore the group’s performance and create significant shareholder value over the medium term.’

Shares in Travis Perkins were down 0.3% at 582.00 pence each in London on Tuesday morning.

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