SIG (SHI) Q4 2025 TU earnings summary

Executive summary

• Full year like-for-like sales were flat compared to the prior year, with a 1% increase in volumes and subdued demand across all markets, with no recovery in H2.

• Underlying operating profit increased by £7 million to approximately £32 million, in line with expectations, supported by significant cost savings.

• The group continues to outperform its markets and is confident in ongoing market share gains, with strong commercial execution and productivity gains.

• Vision 2030 strategy focuses on optimizing operating leverage, business portfolio simplification, and creating a best-in-class European growth platform.

• Management structure for UK Specialist Markets was removed in Q4 2025 to drive cost benefits and synergies.

Financial highlights

• Group operating profit reached approximately £32 million, up £7 million year-over-year, with total revenues of £2.6bn.

• Free cash outflow improved to £12 million, down from £39 million in 2024.

• Year-end liquidity stood at £171 million, including £81 million in cash and £90 million undrawn RCF.

• Leverage remained flat at 4.7x year-over-year, with net debt including leases at £518 million.

• Operating expenses reduced by about £20 million, with an underlying reduction of £39 million (6%) due to restructuring and productivity initiatives.

Outlook and guidance

• Vision 2030 targets 3%-5% operating margins through the cycle and robust, predictable cash generation by 2030.

• Short- to medium-term priorities (2026-2027) include maintaining liquidity, cost reduction, and working capital efficiency in preparation for market recovery.

• No acquisitions planned for 2026 or 2027; focus remains on organic growth and portfolio optimization.

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