Grafton Group (GFTU) H1 2026 earnings summary

Executive summary

• Revenue grew 6.7% year-over-year to £1,336m, with adjusted operating profit up 8.2% to £98.5m and adjusted EPS up 10.8% to 39.4p, reflecting share buybacks and capital allocation.

• Interim dividend increased by 2.3% to 11.00p per share, and full-year adjusted operating profit guidance of £190m–£200m was reaffirmed.

• Two acquisitions (Cygnum in Ireland and Mercaluz in Spain) completed, both integrating well and contributing to growth.

• Strong performance in Ireland and Iberia offset weakness in Great Britain.

• Balance sheet remains robust, supporting ongoing investment, M&A activity, and share buybacks.

Financial highlights

• Adjusted operating profit margin improved by 10bps to 7.4% year-over-year.

• Adjusted profit before tax rose 7.1% to £93.0m; adjusted profit after tax up 7.4% to £74.8m.

• Free cash flow was £70.7m (72% conversion), with net debt (inc. leases) at £315.2m and net cash (pre-leases) at £78.3m.

• Adjusted ROCE at 10.7%, down 20bps year-over-year.

• Acquisitions contributed £44.6m revenue and £9.2m operating profit post-acquisition.

Outlook and guidance

• Full-year adjusted operating profit guidance reaffirmed at £190m–£200m.

• H2 expected to mirror H1: strong in Iberia and Ireland, subdued in Northern Europe, challenging in Great Britain.

• Long-term targets: >10% EPS CAGR, cumulative free cash flow of £850m+, and ROCE ≥13% by 2030.

• Medium-term outlook positive, driven by housing undersupply and RMI demand recovery.

• Management focused on cost control, efficiency, and capital deployment.