Grafton Group plc has cited a “good year of progress despite challenging market conditions” as it announced its final results for the year ended 31 December 2025.
During the financial year, the Group adopted a new ‘region-based’ reporting structure which it states “better reflects the Group’s strategy”. Accordingly, having previously been organised on the basis of five distribution segments, one retailing segment and one manufacturing segment, it is now organised into four geographical areas — Island of Ireland, Great Britain, Northern Europe and Iberia — encompassing a mix of the former segments within each:
Island of Ireland — comprising Chadwicks, Woodie’s, MacBlair and MFP (divested 31 May 2025); Great Britain — comprising Selco, Leyland SDM, TG Lynes, CPI EuroMix and StairBox; Northern Europe — comprising Isero and Polvo in the Netherlands and IKH in Finland; Iberia — comprising Salvador Escoda in Spain the distribution of construction related products.
In its report, comparative figures with the previous segments are provided to reflect the new structure:
Eric Born, Chief Executive Officer, commented: “Delivering profitability ahead of analysts’ consensus, despite inflationary pressures and challenging conditions in some of our markets, reflects the successful execution of our strategy of scaling positions across multiple geographies combined with a strong operational focus. We’ve sustained our focus on margin management, whilst also using our robust balance sheet to invest in strengthening our market positions and our customer proposition. Grafton’s resilience in 2025 points to substantial profitability upside as demand recovers in weaker markets and as we scale our presence organically and through complementary acquisitions.
“We are very encouraged by our strong acquisition pipeline, supported by our highly cash generative business that retained £274m net cash at year-end, and which has supported the return of over £428m to shareholders by way of share buybacks since May 2022.
“We expect continued growth in the Island of Ireland and Iberia however elsewhere market conditions remain mixed. Though market improvement in Great Britain and Northern Europe is expected to be gradual, we remain upbeat on outlook over the medium term based on structural demand tail winds, positive operating leverage and the scalability and efficiency of our businesses as markets normalise.”
Across the Group, full year adjusted operating profit “was ahead of expectations”, increasing by 7.1% to £190.2m (2024: £177.5m) “mostly driven by the first full year contribution of Salvador Escoda in Spain.” The report also cited the “strength of (its) balance sheet” with £274.0m net cash (before lease liabilities) (2024: £272.1m) providing “significant firepower to capitalise on organic and inorganic development opportunities.”
The Group has also confirmed the launch of a new £25.0m share buyback programme, following £129.2m (2024: £154.1m) returned to shareholders in share buybacks and dividend payments in 2025.
Full Group revenue for 2025 was £2,520m (2024: £2,282m) with Adjusted operating profit before tax reported as £190.2m (2024: £177.5m).
Looking at the more ‘local’ picture, the Island of Ireland was reported as a “key driver of growth with Great Britain broadly flat.” However, there was “profit growth in Great Britain despite a weakening RMI market and slow housebuilding recovery.”
The “positive trading conditions are expected to continue in the Republic of Ireland and Spain, however, in our other geographies, markets are anticipated to remain challenging in 2026.”
The reporting continued: “Our experienced management teams will continue to maintain a tight focus on efficiency, cost control and delivering value to customers. Despite moderating momentum through the second half, the outlook for Grafton remains favourable, supported by structural growth drivers, strong market positions across all regions, the recovery potential in Great Britain and Northern Europe, a robust balance sheet and a healthy acquisitions pipeline.”
Further: “In our Island of Ireland segment, we expect the construction market in the ROI to continue to deliver solid growth, supported by increased public‑sector capital investment and a favourable economic backdrop, while no significant volume uplift is anticipated in Northern Ireland due to ongoing weakness in the local economy. We remain vigilant that retail consumer sentiment in the ROI has turned slightly more cautious, with ongoing cost‑of‑living concerns contributing to weaker confidence.
“In Great Britain, the near‑term outlook for the construction market remains subdued following the loss of momentum in the latter part of 2025. While easing inflation and supportive interest rates should help, growth in 2026 is likely to be modest and weighted towards the second half.”
Looking specifically at its UK merchant businesses, the report for example notes: “Targeted commercial actions, including securing enhanced supplier support and, for example, introducing delivery charges in Selco, more than offset significant cost pressures, particularly those arising from higher labour and property related expenses. Towards the end of the year, Selco initiated headline price cuts across 357 of its most frequently purchased building materials to improve its value proposition which has been well received by our customer base.”
In addition, “Leyland SDM opened a new store on Tower Bridge Road in December 2025 and successfully implemented a new ERP in the second half of the year positioning the business to accelerate its investment in its digital offering for customers.” Earlier in the year (in May), the decorating specialist “partnered with TradeKart to offer rapid delivery of decorating and DIY products across London” with customers ordering via an app to “receive site deliveries in as little as 30 minutes, boosting convenience and efficiency for tradespeople.”
