Grafton Group (GFTU) H2 2025 earnings summary

Executive summary

• Achieved a return to revenue and profit growth in 2025, with revenue up 10.4% to GBP 2.52 billion and adjusted operating profit up 7.1% to GBP 190.2 million year-over-year.

• Adjusted return on capital employed rose 60 basis points to 10.9%, exceeding the cost of capital.

• Successfully integrated Salvador Escoda in Spain and HSS Hire in Ireland, strengthening market positions and expanding the Group's footprint.

• Maintained strong cash conversion and preserved a robust balance sheet to support future development.

• Leadership team further strengthened and development activities progressed.

Financial highlights

• Revenue reached GBP 2.52 billion, up 10.4% year-over-year; like-for-like revenue up 1.7%.

• Adjusted operating margin pre-property profit was 7.3%, 30 basis points below last year; adjusted operating profit margin was 7.5%.

• Adjusted operating profit before property profit was GBP 184.3 million, up 6.2% year-over-year; including property profit, it was GBP 190.2 million, up 7.1%.

• Adjusted EPS increased 5.1% to GBP 0.754 (75.4p), aided by share buybacks; full-year dividend up 2%.

• Free cash flow of GBP 168 million with 88% conversion; net debt reduced to GBP 123.4 million (0.39x leverage).

Outlook and guidance

• Construction outlook in Ireland remains positive, with continued housing supply acceleration; retail consumer sentiment more cautious.

• Great Britain expects modest market growth in the second half of 2026 after a slow, weather-impacted start.

• Netherlands construction market anticipated to gradually recover; Finland improvement expected in H2 2026.

• Iberian construction market forecast to grow 3%-4% in 2026, with strong segment prospects.

• Medium-term outlook positive across all geographies, driven by structural housing shortages and aged stock.