**Summary of Marshalls PLC Final Results for the Year Ended 31 December 2025**
**Financial Performance**
**Revenue Growth** Marshalls PLC reported a 2% increase in revenue to £632.1 million, driven by growth in Building and Roofing Products, partially offset by a 1% decline in Landscaping Products.
**Adjusted Profit Before Tax** Adjusted profit before tax decreased by 16% to £43.7 million, in line with market expectations, due to lower profitability in Landscaping Products and increased costs.
**Dividend** The proposed final dividend is 4.5 pence per share, resulting in a total dividend of 6.7 pence, down 16% due to weaker profitability.
**Operational Highlights**
**Landscaping Products** Despite a 1% revenue decline, the segment saw 4% volume growth, outperforming a flat market. The company implemented a performance improvement plan, including cost savings of £11 million by 2026, and reduced portfolio complexity.
**Building Products** Revenue grew by 4%, with strong performances in Water Management and Mortars. Strategic growth initiatives in Water Management are progressing well.
**Roofing Products** Revenue increased by 4%, with Viridian Solar achieving 32% growth, benefiting from new build energy efficiency regulations.
**Strategic Initiatives**
**Transform & Grow Strategy** The company is intensifying the execution of its strategy, focusing on margin improvement, cash generation, and service enhancement. This includes selective activity, organizational focus on delivery, and strengthened commercial discipline.
**Cost Savings** On track to deliver £11 million in annualized cost savings by the end of 2026, with £3 million realized in 2025.
**Market Position** Strengthened customer relationships and market share gains, particularly in Landscaping Products, despite subdued end markets.
**Financial Position**
**Balance Sheet** Robust balance sheet with pre-IFRS 16 net debt of £137.9 million and leverage of 1.8 times adjusted EBITDA.
**Cash Flow** Adjusted operating cash flow conversion of 88%, reflecting disciplined working capital management.
**Refinancing** Successfully refinanced the £270 million facility in November, maintaining commercial terms and providing flexibility for strategic execution.
**Outlook**
**Market Conditions** Market activity levels in early 2026 remained consistent with late 2025, impacted by persistent rainfall.
**Strategic Focus** Priority is on disciplined implementation of the Transform & Grow strategy, with a focus on margin, cash, and service improvements.
**Profitability** The Board is confident of driving a material increase in profitability and returns over the medium term, despite ongoing macroeconomic uncertainties.
**CEO Commentary**
Simon Bourne, CEO, emphasized decisive actions to strengthen Marshalls foundations, returning the company to revenue growth and delivering adjusted profit before tax in line with guidance. He highlighted progress in Landscaping Products improvement plan and the positioning of Roofing and Building Products to capture regulatory and infrastructure-led demand. The focus remains on disciplined execution to achieve sustainable, profitable growth.
**ESG Progress**
**Carbon Leadership** Progress on net-zero targets, validated by the Science Based Targets initiative (SBTi), with a focus on carbon reduction and improved ESG reporting.
**Climate Adaptation** Water management and drainage solutions play a key role in improving flood resilience and water handling.
**Responsible Business Practices** Continued focus on human rights due diligence and supplier improvement programs, especially in high-growth international supply chains.
**Conclusion**
Marshalls PLC demonstrated resilience in 2025, achieving revenue growth and adjusted profit before tax in line with expectations, despite challenging market conditions. The companys strategic initiatives, cost discipline, and focus on sustainable growth position it well for medium-term profitability and returns.