Travis Perkins: 2025 Group Revenue Down; Performance Stabilised

• Travis Perkins plc, the UK’s largest distributor of building materials, announces its full year results for the year to 31 December 2025
  
  
• 2025 adjusted operating profit at £133m with a significantly enhanced financial position

Business performance stabilised

• Group like-for-like revenue growth of 0.3%, with the sharper competitive proposition in H2 offsetting the impact of operational challenges at the start of the year

• Adjusted operating profit of £133m (2024: £152m), reflecting lower margins in Merchanting

• Strong progress in Toolstation UK with adjusted operating profit increasing 29% to £44m

• Proactive management of overheads to mitigate cost inflation and increased employer national insurance, with significant restructuring of central and regional roles in 2025

• Operating loss of £97m (2024: profit of £2m) reflecting the trading performance and adjusting items of £222m (£8m cash items) related to impairments of Toolstation Benelux, CCF and specific Merchanting branches; the sale of Staircraft; and restructuring actions

• Gavin Slark joined the Group as a sector-experienced CEO on 1 January 2026

Robust balance sheet provides flexibility and resilience

• Net cash before leases of £1m driven by £136m working capital inflow, proceeds from the divestment of Staircraft and a disciplined approach to capital expenditure

• Over £800m of liquidity headroom through cash holdings (£427m) and undrawn committed facilities (£390m)

• £250m bond fully refinanced with investment-grade US private placement notes. No significant refinancing requirements until 2028.

(1) Alternative performance measures are used to describe the Group’s performance. Details of calculations can be found in the notes listed. 

Click here to view the results presentation

Click here to see Toolstation results

Click here to see the 2025 Travis Perkins Plc Annual Report

Gavin Slark, CEO, commented:

“I am delighted to have joined as CEO of Travis Perkins plc. It is a business I am very familiar with from my time in the industry and that has enabled me to hit the ground running since I joined at the start of January. I have been immediately impressed with the energy and enthusiasm that exists across all parts of the Group to rebuild our capabilities and performance and enhance our standing as the UK’s largest distributor of building materials.

We have fantastic brands and locations, complemented by a resilient and committed workforce who want to see us back at our best. I want to thank Geoff Drabble, our Chairman, for stepping in and supporting the management team last year and for putting in place the foundations of our recovery. I also want to thank all our colleagues for their dedication and effort in responding to these changes.

We have made significant operational progress over the past year. We have a fully resourced senior management team in place, have successfully overcome the difficulties associated with implementing a new IT system and have taken action to reduce the administrative overheads in our central and regional teams. However, it is the strength of our balance sheet that now provides the necessary resilience and flexibility to underpin our competitiveness in what remains a challenging market backdrop for UK construction activity. We will maintain our disciplined and selective approach to capital allocation as we navigate our way back to better market conditions.

I am looking forward to working with all our colleagues to develop and communicate our strategy for the Group as we look to the future. I have no doubt that we can restore the Group’s performance and create significant shareholder value over the medium term.” 

2025 Performance

The Group delivered revenue of £4,565m, down 0.9% versus the prior year. The decline in revenue was driven by the Merchanting segment with activity across the majority of end markets remaining subdued throughout the year. Despite the softer backdrop this segment saw sequential improvement in the second half as the Group made good progress in adjusting to using Oracle and sharpened its competitive position through pricing and promotional initiatives. This swing was most marked in the General Merchant, which has begun to reverse a recent trend of market share losses as performance started to stabilise and then improve.

Toolstation delivered a robust revenue performance and continued to take market share as the estate continued to mature.

Adjusted operating profit of £133m was £19m, or 12.5%, lower than 2024, reflecting:

• £32m decline in gross profit in Merchanting primarily driven by lower trading volumes, greater promotional activity and one less trading day
  
  
• Overheads in line with the prior year with cost inflation and increased employer national insurance contributions broadly mitigated by proactive cost management
  
  
• Property profits of £10m were £1m lower than the prior year 

Current trading and outlook

The trading environment since the start of the year has remained subdued and this reflects a continuation of the weak UK construction activity figures reported for the final quarter of 2025. Against this backdrop the Group will remain focused on improving its customer proposition, leveraging its strong financial position, and delivering further operational efficiencies in readiness for when market conditions recover.  

Segmental performance

The Group’s Merchanting businesses saw flat like-for-like revenue, as a sharper commercial proposition and the deployment of sales-driven incentives progressively offset the ongoing impact of depressed levels of UK construction activity. Like-for-like volume growth of 0.5% was fully offset by sales price deflation of 0.6% as market over-capacity hindered the ability of distributors to pass modest manufacturer price increases to customers. A 0.7% impact from the divestment of Staircraft and a 0.6% impact from one fewer trading day saw overall revenue down by 1.7% in 2025.

During the second half management implemented a series of actions to rebuild market share, including targeted promotions in plasterboard, PIR insulation board and class B bricks, sales-driven incentives and the continuing addition of resources back into customer-facing roles to improve service levels. These actions and greater leadership stability have improved the trading performance with 45,000 net new customer accounts opened in 2025 and like-for-like sales improving throughout the year: 

Adjusted operating profit reduced by 18.1% to £122m despite focussed cost management, reflecting the high operational gearing of these businesses. The operating profit of £3m (2024: £20m) was the result of these factors and adjusting items of £123m (2024: £133m) relating to impairments and restructuring actions. There was limited change in the Merchanting branch network in 2025, reflecting disciplined capital spend in a challenging market, with three new General Merchant branches opened during the year in Birmingham, Watford and Salford, and a small number of relocations. 

On 30 April 2025, the Group sold its specialist floor kit, i-joist and staircase manufacturer Staircraft for cash consideration of £21m as part of a continued focus on simplifying the Group’s operating model.

Source : Travis Perkins plc

Image : Travis Perkins plc

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