Travis Perkins Q3 Revenue Edges Higher Amid Competitive Market

Travis Perkins plc (LON: TPK) announced its Q3 trading update for the three months ending September 30, 2025, showcasing a return to revenue growth driven by strategic initiatives within its Merchanting segment.

The report indicates a conscious effort to regain market share, particularly in the General Merchant business, while Toolstation continues its focus on margin improvement.

Like-for-like (LFL) sales across the Group rose by 1.8% during the quarter. This growth reflects the impact of actions taken to enhance the competitive positioning of the Merchanting segment. Total revenue growth in Q3 was 0.3%.

The Specialist Merchants' markets, however, remain subdued, presenting an ongoing challenge for the Group.

A closer look at the numbers reveals that Merchanting LFL revenue grew by 1.7%, driven by a 2.5% increase in LFL volume, partially offset by a 0.8% decline in price and mix.

Toolstation, while showing solid trading, recorded a 2.3% increase in LFL revenue, stemming from a 0.5% rise in LFL volume and a more significant 1.8% improvement in price and mix.

The Group's focus on cash generation continues to strengthen its balance sheet, providing flexibility for future investments and strategic initiatives.

Disciplined capital allocation and overhead management are also contributing to the Group's ability to reinvest in its proposition.

Year-to-date (YTD) figures paint a slightly different picture, with the Group experiencing a 0.2% decline in LFL revenue. Merchanting recorded a 0.7% decline, while Toolstation showed a positive 2.7% increase.

Driver Breakdown:

• Merchanting Turnaround: Actions to sharpen the competitive proposition are yielding positive results in the General Merchant business.
• Toolstation Focus: Continued emphasis on strategy execution and operating margin improvement.
• Cash Generation: Good progress in enhancing cash flow is strengthening the Group's financial position.

Geoff Drabble, Chair of Travis Perkins plc commented: “As we outlined at our half year results, in the third quarter we have consciously focused on building top-line momentum and regaining market share in the Merchanting businesses. I am pleased with how our teams have responded to this challenge with Merchanting returning to revenue growth and our operating performance stabilising.”

He added, “In what remains a highly competitive market, we have invested in pricing and targeted promotions and will continue to do so in the near-term.”