UK's Marshalls 2025 revenue slightly misses on Landscaping Products unit weakness

Marshalls

16/03/2026 07:09

Overview

UK building products maker's 2025 revenue grew 2% but slightly missed analyst expectations

Adjusted EBITDA and operating profit fell and missed analyst expectations

Adjusted pretax profit beat analyst expectations despite subdued demand and weaker product mix

Outlook

Company expects UK construction demand to remain subdued in the near term

Marshalls prioritises disciplined execution of Transform & Grow strategy in 2026

Board maintains expectations for 2026, confident in medium-term profitability increase

Result Drivers

LANDSCAPING PRESSURE - Profitability in Landscaping Products fell sharply due to adverse product mix, targeted price investment, and cost inflation, despite volume growth and market share gains

COST SAVINGS - Company implemented restructuring actions and cost reduction programmes, delivering £3 mln of annualised savings in 2025 and targeting £11 mln by end-2026

SOLAR GROWTH - Viridian Solar delivered 32% revenue growth, driven by regulatory-led adoption of integrated solar systems in new build housing

Company press release: ID:nRSP6746Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Miss*
GBP 632.10 mln
GBP 633.86 mln (7 Analysts)
FY Adjusted EBITDA
Miss
GBP 85 mln
GBP 89.77 mln (7 Analysts)
FY Adjusted Operating Profit
Miss
GBP 56.40 mln
GBP 57.22 mln (7 Analysts)
FY Adjusted Pretax Profit
Beat
GBP 43.70 mln
GBP 41.30 mln (7 Analysts)
FY Net Debt
GBP 137.90 mln
FY Operating Profit
GBP 32 mln
FY Pretax Profit
GBP 17.70 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Marshalls PLC is GBp272.00, about 91% above its March 13 closing price of GBp142.40

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)