Travis Perkins (TPK) H2 2025 earnings summary

Executive summary

• Revenue was broadly flat year-over-year at £4,565m, down 0.9%, with like-for-like sales up 0.3%.

• Adjusted operating profit fell 12.5% to £133m, in line with consensus.

• Net cash position of £(1)m pre-leases, the strongest in nearly 30 years, with over £800m liquidity.

• Significant leadership changes, with a new CEO and refreshed management team, and a disciplined approach to margin, cost, and capital allocation.

• Focus on operational improvements, cost discipline, and leveraging synergies across business units without centralization.

Financial highlights

• Adjusted EPS was 30.8p, down 15.8% year-over-year.

• Leverage reduced to 2.1x, down from 2.5x year-over-year.

• Final dividend of 7.5p, total 12p for the year, maintaining 30-40% payout of adjusted earnings.

• Strong cash inflow of £196m, with net debt down £224m to £621m and net debt before leases moved to net cash.

• Over £800m of available liquidity at year-end.

Outlook and guidance

• Ongoing economic and geopolitical uncertainty expected to persist.

• Focus remains on cost control, efficiency, and cash generation.

• Effective tax rate expected around 30%; capex guidance at £80m; property profits c.£5m.

• Interest expense to rise by £6m due to refinancing; similar loss expected in Toolstation Benelux.

• Further deleveraging targeted for 2026.