Travis Perkins PLC, the UKs largest distributor of building materials, announced its preliminary results for the year 2025, highlighting a focus on stabilization and financial resilience amidst a challenging market backdrop. Here’s a summary of the key points
### **Financial Performance**
**Revenue**£4,565 million, down 0.9% from 2024, primarily due to subdued activity in the Merchanting segment.
**Adjusted Operating Profit**£133 million, a 12.5% decline from 2024, reflecting lower margins in Merchanting.
**Operating Loss**£97 million, compared to a £2 million profit in 2024, due to adjusting items of £222 million related to impairments, divestments, and restructuring.
**Net Cash Before Leases**£1 million, driven by working capital inflows, divestment proceeds, and disciplined capital expenditure.
### **Business Highlights**
**Merchanting**Like-for-like revenue growth of 0.3%, with improvements in H2 offsetting operational challenges in H1. Adjusted operating profit declined by 18.1% to £122 million.
**Toolstation UK**Strong performance with adjusted operating profit up 29% to £44 million, driven by store maturity and digital enhancements.
**Toolstation Benelux**Continued losses of £11 million, with management reviewing strategy and implementing cost-saving measures.
### **Strategic Initiatives**
**Restructuring**Proactive management of overheads, including significant restructuring of central and regional roles.
**Divestments**Sold Staircraft for £21 million as part of simplifying the operating model.
**Leadership**Gavin Slark appointed as CEO in January 2026, bringing extensive industry experience.
### **Balance Sheet and Liquidity**
**Net Debt Reduction**Net debt before leases reduced by £192 million, achieving a net cash position for the first time in nearly 30 years.
**Liquidity**Over £800 million in liquidity headroom through cash holdings (£427 million) and undrawn facilities (£390 million).
**Refinancing**£250 million bond refinanced with investment-grade US private placement notes, with no significant refinancing needs until 2028.
### **Dividend**
**Final Dividend**7.5 pence per share recommended, giving a full-year dividend of 12.0 pence per share, in line with the 30-40% adjusted earnings payout policy.
### **Outlook**
**Market Conditions**Trading environment remains subdued, reflecting weak UK construction activity.
**Focus Areas**Improving customer proposition, leveraging financial strength, and delivering operational efficiencies.
**Technical Guidance**Expected ETR of 30% on UK profits, base capex of £80 million, and property profits of £5 million for 2026.
### **CEO Commentary**
Gavin Slark emphasized the Group’s focus on rebuilding capabilities, enhancing performance, and restoring shareholder value. He highlighted the strength of the balance sheet and the commitment to disciplined capital allocation in navigating challenging market conditions.
### **Principal Risks and Uncertainties**
The Group updated its risk framework to include standalone risks for **People & Skills** and **Business Operating Model & Driving Competitive Advantage**, reflecting the evolving business environment.
### **Conclusion**
Travis Perkins PLC’s 2025 results reflect a year of stabilization and financial resilience, with a focus on operational improvements and strategic restructuring. Despite challenges in the construction sector, the Group is positioned to leverage its strong balance sheet and leadership changes to drive future growth and shareholder value.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue (£m) | 4,565 | 4,607 | (0.9%) |
| Adjusted Operating Profit (£m) | 133 | 152 | (12.5%) |
| Adjusted Earnings per Share (pence) | 30.8 | 36.6 | (15.8%) |
| Return on Capital Employed (%) | 5.3 | 5.4 | (0.1)ppt |
| Net Debt / Adjusted EBITDA (x) | 2.1 | 2.5 | 0.4x |
| Ordinary Dividend per Share (pence) | 12.0 | 14.5 | (17.2%) |
| Operating (Loss) / Profit (£m) | (97) | 2 | N/A |
| Loss After Tax (£m) | (176) | (77) | (128.6%) |
| Basic Earnings per Share (pence) | (83.3) | (36.6) | (127.6%) |
| Net Debt (£m) | 621 | 845 | (224) |
| Net Debt Before Leases (£m) | (1) | 191 | (192) |