SIG (SHI) Q4 2025 TU earnings summary

Executive summary

• Full year like-for-like sales were flat, with a 1% increase in volumes amid subdued demand and no market recovery in H2.

• Operating profit increased by £7 million to approximately £32 million, in line with expectations.

• Significant cost savings of £39 million were achieved, with further self-help and procurement opportunities identified.

• The group is focusing on optimizing its business portfolio, enhancing procurement efficiency, and digitalisation.

• Liquidity remains robust at £171 million at year-end, with £81 million in cash and £90 million undrawn RCF.

Financial highlights

• Group operating profit rose to £32 million, £7 million higher than the prior year.

• Free cash outflow improved to £12 million, a significant improvement from £39 million in 2024.

• Year-end leverage remained flat at 4.7x, with net debt including leases at £518 million.

• UK Interiors and Roofing segments saw full-year sales growth of 3% and 2%, respectively.

• France and Germany segments experienced sales declines, while Poland and Benelux posted positive growth.

Outlook and guidance

• Targeting 3%-5% operating margins through the cycle, up from the historical 1.5%-2%.

• Focus for 2026-2027 is on liquidity, cost reduction, and working capital efficiency ahead of market recovery.

• No acquisitions planned for 2026 or 2027; portfolio optimization will be both organic and inorganic over the longer term.

• Expecting low single-digit input cost inflation, with pricing assumed to be flat or slightly down.

• More detailed 2026 outlook to be provided with full FY25 results in March 2026.