Grafton Group Stock Earnings Reports

Key points for investors: Grafton delivered a resilient FY2025 with revenue up 10.4% to £2.52bn and adjusted operating profit (pre-property) up 6.2% to £184.3m; adjusted operating profit including property rose 7.1% to £190.2m. Adjusted ROCE improved to 10.9%, comfortably above the Group's cost of capital. Strong cash generation (free cash flow £168m; 88% conversion) and a disciplined capital-allocation approach underpin shareholder returns: dividend increased 2% to 37.75p and a new £25m share buyback was announced (share count down >20% since 2022). Strategic progress included successful integration of Salvador Escoda (Iberia) and the bolt-on HSS Hire Ireland (into Chadwicks), with Salvador Escoda performing in line with expectations and positioned for accelerated organic and inorganic growth. Segment performance was mixed: Island of Ireland and Iberia/Spain were growth drivers; Great Britain achieved a notable 120bp gross-margin improvement despite broadly flat sales; Northern Europe underperformed (notably Finland) with profit decline due to lower volumes and cost pressures. Management emphasised tight cost control, margin management, and a federated local operating model, with continued focus on M&A selectively within existing markets and maintaining investment in the business. Near-term outlook is cautious: early-2026 trading impacted by weather and weak UK housing activity, with expectations of modest H2 improvement in GB and continued structural long-term demand across markets.