Travis Perkins (TPK) H1 2025 earnings summary

Executive summary

• Leadership transition underway with a new CEO appointed, effective January 2026, and interim management focused on stabilizing operations and reversing market share losses in merchanting.

• Toolstation UK delivered strong growth, with operating profit up 50% to £21m and continued market share gains, while Benelux faced challenges from a website upgrade but narrowed losses.

• Organizational restructuring addressed key vacancies, improved agility, and enhanced customer-centricity and operational capability.

• Recovery initiatives included targeted promotions, improved training, and system fixes, particularly around Oracle implementation.

• Net debt before leases reduced by £88m to £103m, supported by working capital inflow and asset sales.

Financial highlights

• Group revenue for H1 2025 was £2,300m, down 2.1% year-over-year; adjusted operating profit fell 24.1% to £63m.

• Adjusted EPS declined 33.2% to 13.3p; interim dividend per share reduced by 18.2% to 4.5p.

• Net debt before leases reduced to £103m from £233m year-over-year; net debt/adjusted EBITDA improved to 2.3x.

• Net cash inflow increased to £88m, driven by improved working capital and Oracle process stabilization.

• EBITDA for H1 2025 was £147m, down from £174m in H1 2024.

Outlook and guidance

• Trading environment expected to remain challenging and unpredictable, with H2 performance anticipated to be similar to H1.

• Full year adjusted operating profit (including £8m property profits) expected broadly in line with market consensus (£135m–£148m, mean £141m).

• Base capital expenditure guidance for 2025 is around £80m; property profits expected at £8m; effective tax rate projected at 30%.