Marshalls FY25 Profit Tumbles, Shares Rise 2.4%

Marshalls (LON: MSLH) saw its shares climb 2.4% following the release of its full-year results for the 12 months ended December 31, 2025.

The diversified building products manufacturer reported a mixed performance, but investors appear to be focusing on the company’s strategic initiatives and future growth potential.

The company reported revenue of £632.1 million, a 2% increase compared to £619.2 million in 2024. However, adjusted EBITDA decreased by 13% to £85.0 million (2024: £97.8 million), and adjusted profit before tax fell by 16% to £43.7 million (2024: £52.2 million). The proposed final dividend also saw a reduction of 17% to 4.5 pence.

Despite the profit decline, Marshalls highlighted its “resilient in-line performance,” stating that the group returned to revenue growth and delivered adjusted profit before tax in line with market expectations.

The Landscaping Products division showed improvement, with higher volumes and market share gains, although this was offset by price investments and a weaker product mix.

The Building Products division achieved revenue growth of 4%, driven by strong performances in Water Management and Mortars. Roofing Products also saw a 4% increase in revenue, boosted by a 32% growth in Viridian Solar. Marshalls also emphasized its strong financial position, with pre-IFRS 16 net debt of £137.9 million and leverage of 1.8 times pre-IFRS 16 adjusted EBITDA.

Marshalls is focused on executing its “Transform & Grow” strategy, concentrating resources on priorities that will improve margin, cash, and service outcomes. The company aims to deliver £11 million of annualised cost savings by the end of 2026. Management also successfully refinanced its £270 million facility in November, maintaining commercial terms and ensuring medium-term funding flexibility.

Market activity levels in the first two months of 2026 remained consistent with the close of 2025, although they were affected by persistent rainfall. The company’s priority for 2026 is the disciplined implementation of the ‘Transform & Grow’ strategy.

The board is mindful of the conflict in the Middle East. However, in the absence of clarity on the impact of the conflict on our end markets and cost base, our expectations for the year remain unchanged and the Board is confident of driving a material increase in profitability and returns over the medium-term.

Marshalls’ CEO, Simon Bourne, stated, “We have acted decisively to strengthen Marshalls’ foundations as part of our ‘Transform and Grow’ strategy,” adding that the business has returned to revenue growth while adjusted profit before tax was in line with guidance.