Trading Statement

19 January 2026

Marshalls plc

('Marshalls' or the 'Group')

Full Year Trading Update and Notice of Results

2025 result in-line with expectations

Marshalls, a leading manufacturer of sustainable solutions for the built environment, provides the following trading update for the year ended 31 December 2025.

Overview

Divisional trading performance

Landscaping Products' revenue was £266 million (2024: £268 million), which is a reduction of one per cent compared to 2024. This comprised volume growth of four per cent in a subdued market, offset by price investment of one per cent and a mix impact of four per cent.  The impact of each factor moderated slightly in the second half of the year.

Building Products' revenue was £172 million (2024: £165 million), which represents an increase of four per cent. Revenue growth moderated to three per cent in the second half of the year as the strong growth in Water Management was partially offset by a further softening in Bricks.

Roofing Products' revenue was £194 million (2024: £186 million), which is an increase of four per cent, driven by growth of c.32 per cent in Viridian Solar, partially offset by a reduction in Marley. Viridian Solar delivered sequential half-on-half revenue growth during 2025.  As expected, year-on-year revenue growth moderated to c.18% in H2 as the implementation of the Part L energy efficiency regulations matured resulting in tougher comparatives.  Lower market activity levels and relatively strong comparators resulted in Marley revenues contracting in the second half.

Landscaping Products improvement plan

Encouraging progress was made on the Landscaping Products improvement plan resulting in volume and market share growth. The network optimisation and self-help actions taken in 2025, including exiting UK quarried natural stone processing, were concluded as planned in the second half of the year.  These actions are expected to deliver total annualised savings of around £11 million, of which around £3 million were realised in 2025.

Balance sheet and liquidity

The Group's balance sheet continues to be robust, with pre-IFRS16 net debt of £138 million at the year-end (December 2024: £134 million).  The Group has significant liquidity to fund its strategic and operational growth plans with £125 million of headroom at the year-end on its recently refinanced syndicated bank facility.

Outlook

The Group expects to report full year adjusted profit before tax in-line with market expectations¹ despite subdued end markets and the impact of prolonged pre-Budget uncertainty during the second half.  The outlook for 2026 continues to be uncertain and accordingly, the Board remains focused on operational improvements through its 'Transform & Grow' strategy.  While the Group is not anticipating a significant improvement in market activity levels during the next 12 months, the actions taken to reduce the cost base during 2025 give the Board confidence that the Group will deliver an improved financial performance in 2026.

Notice of Results

The Group will announce its results for the year ended 31 December 2025 on 16 March 2026.

Simon Bourne, Chief Executive Officer, commented:

"Marshalls delivered a resilient performance, evidenced by a return to revenue growth despite the challenging market backdrop, and delivering profits in-line with the market's expectations. We have made good progress with our 'Transform & Grow' strategy and with an increased focus on execution, I am confident that the Group is well positioned to benefit from a market recovery and structural growth drivers over the medium term."

¹ Company compiled consensus for adjusted profit before tax is £43.6 million with a range of £42.0 million to £44.4 million.

Enquiries:

Note to the Editor:

About Marshalls plc:

Established in the late 1880s, Marshalls plc is a leading UK manufacturer of sustainable solutions for the built environment. It operates through three trading divisions: Landscaping; Building; and Roofing. At a Group, divisional and brand level, Marshalls' strategy centres around its customers who value its unique set of capabilities, namely leading brands, best in class technical and design support and carbon leadership. This is underpinned by business wide enterprise excellence, leadership in ESG governance and standards and its people, organisation, and culture.   

The Group operates a national network of manufacturing and distribution sites. Marshalls is committed to quality in everything it does, including the achievement of high environmental and ethical standards and continual improvement in health and safety performance. Its strategic goal is to become the UK's leading manufacturer of sustainable solutions and products for the built environment.  

Forward-Looking Statements:

Any statements in this release, to the extent that they are forward-looking, are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the markets in which Marshalls operates. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a wide range of variables, which could cause actual results to differ materially from those currently anticipated.  More information about the factors that may affect Marshalls' performance is contained in the Annual Report to shareholders for the year ended 31 December 2024.