Marston's (MARS) H1 2026 earnings summary

Executive summary

• Underlying profit before tax grew 7.9% year-on-year to £20.5m, with EBITDA margin rising to 20.3% and strong margin expansion despite cost headwinds and temporary pub closures for refurbishments.

• Strategic focus on differentiated pub formats, digital transformation, and operational efficiencies exceeded targets, with 60 conversions completed versus a plan of 50, all performing strongly and driving robust returns.

• Positive outlook for H2 and full-year, maintaining guidance and expecting strong summer trading, supported by new formats and the World Cup.

• On track to meet FY26 expectations, with company-compiled market forecasts for underlying profit before tax of £78.7m (range: £76.1m–£83.2m).

• Digital initiatives and productivity improvements offset inflationary pressures and temporary closures.

Financial highlights

• Total revenue was £422.7m, down 1.1% year-on-year, impacted by closure periods for new pub formats.

• EBITDA was £85.9m, flat year-on-year, with margin expanding 20bps to 20.3%.

• Underlying profit before tax rose to £20.5m, up 7.9% year-on-year; statutory profit before tax rose 19.5% to £23.3m.

• Earnings per share increased 9.1% to 2.4p; statutory EPS up 17.4% to 2.7p.

• Recurring free cash outflow of £15.6m in H1, expected to reverse in H2, with full-year recurring free cash flow expected to exceed £50m.

Outlook and guidance

• Like-for-like sales expected to increase in H2, supported by new pub formats and the World Cup.

• Margin expansion and deleveraging anticipated in H2, with leverage targeted at 4.0x by year-end.

• Board confident in meeting full-year market expectations and expanding new format rollout to ~100 sites in FY2027.

• 91 new format refurbishments to deliver in H2, supporting further revenue and EBITDA growth.

• Recurring free cash flow for the full year expected to exceed £50m.