Marston's (MARS) H1 2026 earnings summary

Executive summary

• Delivered strong profit and margin growth in H1 FY2026, with underlying profit before tax up 7.9% to £20.5m and EBITDA margin rising to 20.3%, driven by new pub formats and digital transformation.

• Completed 60 new format conversions, ahead of plan, with all performing well and driving significant like-for-like sales and returns; Grandstand format achieved 30% LFL revenue growth and 35–40% ROIC.

• Strategic focus on differentiated pub formats, digital transformation, and expansion of managed and partnership models.

• Maintained positive outlook for H2, supported by new formats, the World Cup, and robust operational execution.

• On track to meet FY2026 expectations, with company-compiled market forecasts for underlying profit before tax of £78.7m (range: £76.1m–£83.2m).

Financial highlights

• Total revenue was £422.7m, down 1.1% year-on-year, impacted by closure periods for refurbishments.

• EBITDA was £85.9m, flat year-on-year, with margin expanding 20bps to 20.3%.

• Underlying profit before tax rose to £20.5m, up 7.9% year-on-year; EPS increased 9.1% to 2.4p.

• Recurring free cash outflow of £15.6m in H1, expected to reverse in H2; on track for over £50m recurring free cash flow for the full year.

• Net debt (excl. IFRS 16) reduced to £857.7m, leverage down to 4.7x EBITDA; NAV per share up to £1.28, a 19.6%–21% increase year-on-year.

Outlook and guidance

• Confident in FY2026 trading outlook, expecting like-for-like sales growth in H2, driven by new formats and the World Cup.

• Further margin expansion anticipated in H2, with good cost visibility and productivity improvements.

• Recurring free cash flow outflows in H1 expected to unwind, maintaining guidance for over £50m for the year.

• Continued deleveraging targeted, aiming for net debt/EBITDA of around 4x by year-end.

• Accelerated rollout of new formats planned, with around 100 conversions targeted for next year.