Marshalls (MSLH) H1 2026 earnings summary

Executive summary

• Sharper execution and self-help actions led to higher profit, earnings, and dividend despite marginally lower or flat revenue year-over-year.

• Performance improvement plans, especially in Landscaping, translated into profit growth and margin recovery.

• Portfolio diversification provided resilience against subdued market conditions, with Roofing and Water Management contributing to stability.

• Strategy remains unchanged, focusing on disciplined execution, cost control, and delivery.

• Board maintains confidence in full-year outlook despite no assumed market recovery in H2 2026.

Financial highlights

• Revenue was stable at £317.8m–£380m, down up to 0.5% year-over-year amid weak market activity.

• Adjusted operating profit rose 8.1% to £30.7m, driven by improved Landscaping performance.

• Adjusted profit before tax increased 13.2% to £24.9m, aided by lower finance charges.

• Adjusted basic EPS rose 14.4% to 7.6p, benefiting from a lower effective tax rate.

• Interim dividend up 14% to 2.5p per share, reflecting dividend policy.

Outlook and guidance

• No material market recovery expected in H2 2026; focus remains on cost, cash, and capital discipline.

• FY26 profitability expectations unchanged; confidence in delivering full-year targets based on controllable actions.

• Medium-term strategy aims to double operating profit, leveraging self-help, structural growth, and cyclical upside.

• Landscaping savings of £11m on track for delivery by year-end.