Travis Perkins H1 revenue falls on lower volumes; cuts interim dividend

Travis Perkins

04/08/2026 07:19

Overview
UK building materials distributor's H1 revenue fell 1.8% amid lower volumes and tough market
Adjusted operating profit rose 6.3%, helped by gross margin gains and cost control
Company cut interim dividend to 4.0p per share from 4.5p last year

Outlook
Travis Perkins expects H2 market conditions to be comparable to H1, with similar trading performance
Company sees base capital expenditure for 2026 at £60-70 mln
Travis Perkins expects property profits of around £5 mln in 2026

Result Drivers
MARGIN GAINS - Gross margin expanded due to more effective pass-through of price inflation, favourable sales mix and procurement gains
LOWER VOLUMES - Revenue decline was driven by reduced volumes in challenging market conditions and the prior-year disposal of Staircraft
COST CONTROL - Overhead inflation from higher employment and property costs was partially offset by restructuring and tighter discretionary spend

Company press release: ID:nRSD0812Pa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
GBP 2.26 bln
 
H1 Net Income
 
GBP 30 mln
 
H1 Adjusted Operating Profit
 
GBP 67 mln
 
H1 Dividend
 
GBP 0.04
 
H1 Operating Profit
 
GBP 65 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the home improvement products & services retailers peer group is "buy"
Wall Street's median 12-month price target for Travis Perkins PLC is GBp625.00, about 9.1% above its August 3 closing price of GBp573.00
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

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(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.)