Marshalls Reports Mixed 2025 Results: Landscaping Profits Plunge 94%, Viridian Solar Shines with 32% Growth

The proposed total dividend is 6.7p (2024: 8.0p), consistent with the policy of 2x cover by adjusted earnings. Adjusted ROCE slipped to 7.0% (2024: 8.2%), with a medium-term ambition of around 15% once margins rebuild and volumes recover.

Segment deep dive: where the opportunities and risks sit

Landscaping Products – growth in share, not yet in profit

Revenue was £265.8 million (-1%), with operating profit at £0.6 million. The self-help plan is sensible and already delivering cost savings, but the numbers show how much mix and price discipline matter at current demand levels. The margin recovery path is the key swing factor for Group returns.

Roofing Products – Viridian Solar offsets Marley softness

Revenue rose to £194.3 million (+4%) with a 25.8% margin. Viridian’s strong 2025 growth is regulation-led. Management expects a slowdown in 2026 as the Part L transition matures. Marley should benefit from in-flight efficiency capex, but competition in concrete tiles remains intense.

Building Products – Water Management and Mortars carry the load

Revenue of £172.0 million (+4%), operating profit £13.0 million (-8%). Water Management is the bright spot with a clear AMP8 pipeline. Mortars benefitted from ready-to-use demand on modest build rates. Bricks & Masonry is biding its time, leaning on lower-carbon credentials while new-build remains subdued.

Outlook: steady markets, tighter execution

Trading in the first two months of 2026 mirrors late 2025, with persistent rainfall noted. Despite geopolitical caution around the Middle East, full-year expectations are unchanged. The priority is disciplined delivery of ‘Transform & Grow’ to improve margins, cash and service. Management is aiming for a material increase in profitability and returns over the medium term.

My take: cautious optimism, with plenty still to do

• Positives: revenue growth resumed; strong cash discipline; refinancing secured to 2029; clear cost-out plan in Landscaping; regulation-led engines (solar and water) are working; leverage remains manageable at 1.8x.
• Negatives: Landscaping’s margin near zero is the headline worry; adjusted ROCE at 7.0% is well below the medium-term goal; Marley’s operational disruption and concrete tile competition need watching; adjusted items are sizeable this year.

In plain terms, Marshalls is not waiting for the cycle to do the heavy lifting. The self-help is real, and if Landscaping’s mix improves even modestly while AMP8 and solar continue to contribute, earnings should rebuild. But until the Landscaping margin recovery shows through, the share will likely trade on execution risk.

Key watchpoints for 2026

• Delivery of £11 million annualised Landscaping cost savings by end-2026 and evidence of margin uplift from 0.2% toward management’s “at least 12%” medium-term ambition.
• Conversion of Water Management’s AMP8 design pipeline into H2 2026 despatches.
• Marley manufacturing upgrades translating into better availability, efficiency and stable margins despite competitive supply conditions.
• Viridian Solar growth moderating as expected, but market share held and ArcBox expansion in the UK and Europe.
• Cash discipline maintained: working capital, capex within £20 million to £30 million, and leverage trending down.

Bottom line

This is a classic transition year: painful in places, but with green shoots. If Marshalls executes on cost, mix and disciplined commercial focus, the operational gearing could be meaningful when volumes improve. For now, it is a show-me story – with Viridian Solar and Water Management doing a lot of the heavy lifting while Landscaping gets back into fighting shape.