SIG (SHI) H1 2026 earnings summary

Executive summary

• Delivered resilient H1 2026 performance despite challenging market conditions, with Q2 returning to growth after a weather-impacted Q1.

• Benelux returned to profitability; significant cost savings achieved and strong liquidity maintained.

• Vision 2030 strategy launched, targeting £50m operating profit improvement by mid-2028 and at least £100m cash generation by end-2027.

• New CFO with a strong transformation track record joined in May 2026.

• Revenue for H1 2026 was £1,293.3m, down 0.9% year-over-year, with like-for-like sales down 1.5% due to continued softness in construction activity and poor weather in Q1.

Financial highlights

• Group revenue down 0.9% year-over-year to £1,293.3m; like-for-like sales down 1.5%.

• Underlying operating profit declined to £10.5m (0.8% margin), down from £15.4m (1.2%) in H1 2025.

• Free cash outflow of £16m, reflecting normal seasonality and stock build ahead of price increases.

• Robust liquidity of £154m at period end, including £64m cash and £90m undrawn RCF.

• Gross margin declined to 23.9% from 24.2% year-over-year due to pricing pressure.

Outlook and guidance

• Main markets expected to remain subdued in H2 2026; FY 2026 underlying operating profit expected to be around £25m.

• Vision 2030 targets: £50m operating profit improvement by mid-2028, at least £100m cash generation by end-2027, 3–5% operating margin, leverage below 3.0x.

• Targeting net debt reduction in H2 and maintaining healthy liquidity.

• Markets not expected to recover in 2026 or 2027; self-help plan accelerated to generate cash and reduce leverage.