Travis Perkins (TPK) H2 2025 earnings summary

Executive summary

• New CEO and leadership team in place, focused on building world-class businesses, operational improvement, and stakeholder experience, with a disciplined approach to margin, cost, and capital allocation.

• Emphasis on a branch-based, sales-led, decentralized structure and leveraging synergies across business units.

• Underlying financial strength provides resilience and optionality.

• Oracle ERP transition challenges now largely resolved, with benefits starting to materialize.

Financial highlights

• Group revenue for the year was £4.6bn, down 0.9% year-over-year; like-for-like revenue up 0.3%.

• Adjusted operating profit was £133m, down 12.5% year-over-year, in line with consensus.

• Adjusted EPS was 30.8p, down 15.8% year-over-year.

• Net cash position of £1m (pre-leases), the strongest in nearly 30 years, with net debt before leases moving from £191m to £(1)m.

• Ordinary dividend per share reduced by 17.2% to 12.0p, representing a 30-40% payout of adjusted earnings.

Outlook and guidance

• Ongoing economic and geopolitical uncertainty expected; focus remains on controllable factors, cost discipline, and cash generation.

• Effective tax rate expected around 30%; capex guidance at £80m; property profits around £5m.

• Interest expense to rise by £6m due to refinancing, partially offset by higher interest income.

• Similar level of loss expected in Toolstation Benelux for the coming year; all strategic options under review.

• Further cash generation and deleveraging targeted in 2026.