Grafton Group (GFTU) CMD 2026 summary

Strategic ambitions and operating model

• Aims to deliver over GBP 850 million cumulative free cash flow, >10% EPS CAGR, and 13% ROCE by 2030, leveraging a federated operating model and disciplined capital allocation.

• Focuses on organic growth, network optimization, digital solutions, operational excellence, and value-enhancing M&A, with a strong emphasis on sustainability.

• Maintains strong local accountability while sharing best practices and procurement insights across geographies, supported by a scalable technology blueprint.

• ESG and sustainability are embedded in procurement, with 98% of emissions in Scope 3.

• Invests in talent, engagement, and shared HR practices to drive performance and innovation across regions.

Financial performance and guidance

• Delivered GBP 2.5 billion revenue in 2025, 12.7% EBITDA margin, and 7.3% operating profit, with EBITA margin improving from 5.5% to 7.3% since 2016.

• Free cash flow averaged GBP 177 million per year over the last decade, totaling GBP 1.8 billion, with per share rising from 56.7p to 86.6p.

• Dividend yield stands at 4.5%, with buybacks reducing shares by over a fifth since 2022; dividend per share increased from 13.8p to 37.8p.

• Group targets 2.5–3% organic revenue CAGR to 2030, with market recovery assumptions varying by region.

• Maintains investment-grade credit rating, targeting 1.0x–2.0x lease-adjusted net debt/EBITDA and 2–3x dividend cover.

Regional business development and strategies

• Ireland: Double-digit margins, strong growth outlook, expanding branch network, and digital transformation (Trade Hub, AI, click-and-collect), focusing on trade and consumer segments.

• Woodie’s: Leading omnichannel DIY retailer, 13.5% margin, digital sales up 44% in 24 months, targeting 130% digital growth by 2030.

• GB: Five business units, Selco as core, focus on digital, loyalty, own brands, and operational efficiency; positions for recovery in new-build and RMI.

• Northern Europe: Market leader in ironmongery and PPE, 265 branches, margin recovery expected via service-led model, digital, and efficiency initiatives; modernizes branch formats and expands value-added services.

• Iberia: Ambition for GBP 1 billion/€1 billion revenue by 2030, driven by HVAC sector growth, acquisitions, and organic expansion; Mercaluz and Salvador Escoda managed independently.