Marshalls half-year results 2026: profits rise despite flat revenue

Marshalls has delivered higher profits, stronger cash conversion and a larger interim dividend despite seeing little help from its end markets.

For the six months ended 30 June 2026, group revenue slipped 0.5% to £317.8 million. However, adjusted operating profit rose 8.1% to £30.7 million, while adjusted profit before tax increased 13.2% to £24.9 million.

That combination tells investors something important. This was not a growth-led result. It was a self-help result, driven by cost reductions, tighter execution and the early recovery of the Landscaping Products division.

The full original company announcement also confirms that full-year profitability expectations remain unchanged, even though Marshalls is assuming no material market recovery in the second half.

Marshalls' key half-year figures

Metric	H1 2026	H1 2025	Change
Revenue	£317.8 million	£319.5 million	-0.5%
Adjusted EBITDA	£44.0 million	£42.9 million	+2.6%
Adjusted operating profit	£30.7 million	£28.4 million	+8.1%
Adjusted profit before tax	£24.9 million	£22.0 million	+13.2%
Adjusted basic EPS	7.6p	6.6p	+14.4%
Reported profit before tax	£19.7 million	£11.7 million	+68.4%
Interim dividend	2.5p	2.2p	+13.6%
Pre-IFRS 16 net debt	£136.8 million	£151.6 million	-9.8%

Adjusted figures exclude items management believes do not reflect underlying trading. In H1 2026, Marshalls recorded £5.2 million of adjusting items, entirely relating to the amortisation of intangible assets created through acquisitions.

Reported profit before tax still rose sharply, increasing from £11.7 million to £19.7 million. The year-on-year comparison benefited from the absence of the restructuring and impairment charges recorded in H1 2025.

Landscaping is finally doing some heavier lifting

The standout development was the improvement in Landscaping Products.

Revenue was almost flat at £135.1 million, but segment operating profit increased from just £0.3 million to £5.5 million. Its operating margin recovered from 0.2% to 4.1%.

Marshalls attributes that progress to higher gross margins, lower manufacturing costs and reduced overheads. It remains on track to deliver the previously announced £11 million of annualised cost savings by the end of 2026.

Customer service also appears to be improving. Market share increased across core Landscaping categories over the previous 12 months, while Net Promoter Scores rose by around 11 percentage points. A Net Promoter Score measures how willing customers are to recommend a company.

This division still has work to do, given its margin remains well below that of Roofing Products. Nevertheless, moving from negligible profit to a more meaningful contribution without relying on stronger markets is encouraging.

Building Products remains exposed to weak housing demand

Building Products had a more difficult half.

Revenue fell 0.9% to £85.6 million, while operating profit declined 10.1% to £6.2 million. The segment margin dropped from 8.0% to 7.2%.

Mortars & Screeds remained resilient, but weak new-build housing demand affected Water Management and Bricks & Masonry. Extended maintenance shutdowns and additional costs arising from conflict in the Middle East also reduced operational efficiency.

Water Management offers a potential medium-term growth route. Marshalls now has framework agreements with three water companies, while sales linked to the AMP8 water investment programme more than doubled against H1 2025.

However, the announcement does not disclose the value of those sales or the size and timing of future orders. Investors therefore have evidence that the opportunity is developing, but not enough information to quantify its likely profit contribution.

Roofing stays highly profitable, but margins slipped

Roofing Products remained Marshalls' largest profit contributor.

Revenue declined 0.6% to £97.1 million, with operating profit falling 6.9% to £23.1 million. The margin reduced from 25.4% to 23.8%, although that remains well ahead of the group's other divisions.

Marley Roofing gained market share, but faced subdued demand, pricing pressure and aggressive competition in concrete roof tiles. Marshalls estimates that net market capacity in concrete tiles increased by around 12% over the previous year, adding further competitive pressure.

Viridian Solar provided some balance, growing revenue by 7%. Marshalls expects the Future Homes Standard to create another growth phase, potentially doubling its addressable market as solar requirements for new-build homes increase. Management expects that phase to begin in late 2028 and become fully embedded by 2030.

That is a potentially attractive structural opportunity, but it is not an immediate fix for weak construction demand.

Cash, debt and the dividend

Balance sheet discipline was another positive.

Pre-IFRS 16 net debt, which excludes lease liabilities, fell by £14.8 million year on year to £136.8 million. Leverage stood at 1.7 times annualised adjusted pre-IFRS 16 EBITDA, compared with 1.8 times a year earlier.

Operating cash conversion improved to 98% of adjusted EBITDA on an annualised basis. Marshalls also had £125 million undrawn under its £150 million revolving credit facility, alongside a £120 million term loan. Its main syndicated facility matures in November 2029.

The interim dividend increased 13.6% to 2.5p per share. It is due to be paid on 1 December 2026 to shareholders on the register on 23 October, with the shares trading ex-dividend from 22 October.

Readers following the company can find further coverage on the Marshalls PLC share page.

What investors should watch next

Marshalls is not assuming a material recovery in end-market demand during 2026. That keeps expectations grounded, but it also highlights the main risk: further profit improvement must continue to come mainly from execution and cost control.

The positives are the Landscaping recovery, lower debt, strong cash conversion and a dividend increase comfortably ahead of revenue growth. Full-year profitability expectations are unchanged, although the precise target was not disclosed.

The negatives are continued weakness in new-build housing, lower profits in Building Products and Roofing Products, competitive pressure in roof tiles and an adjusted annualised return on capital employed of only 7.2%. Marshalls is targeting around 15% over the medium term, so the gap remains substantial.

The most useful test in the second half will be whether Landscaping can protect its improved margin while Roofing stabilises and Water Management converts more of its infrastructure pipeline. If that happens without a market recovery, Marshalls will have stronger evidence that its Transform & Grow strategy is producing more than temporary cost savings.