Marshalls Plc · LSE:MSLH
Marshalls — H1 2025 Earnings Presentation
40 slides from Marshalls's earnings presentation, Aug 11, 2025
Slide 1: Half year 2025 results
Marshalls Building Tomorrow’s World Half year 2025 results 11 August 2025
Slide 2: Agenda
Agenda 01 Half year summary 02 Focus on Landscaping Products 03 Half year financial results 04 Strategy update 05 Summary and outlook 2
Slide 3: Half year summary
= o _ ($) LL ” Half year summary
Slide 4: 'Transform & Grow' strategy delivers a return to Group revenue growth in subdued markets
Building Tomorrow’s World ‘Transform & Grow’ strategy delivers a return to Group revenue growth in subdued markets Group returned to Improved profitability in Acceleration of Robust balance sheet revenue growth reflecting Building and Roofing Landscaping reflecting disciplined early progress of Prod
Slide 5: Focus on Landscaping Products
SECTION Focus on Landscaping Products 5
Slide 6: Landscaping Products
Building Tomorrow’s World Landscaping Products Improved revenue trend but margins remain under pressure in 2025 Improving revenue trend – Stronger customer engagement and new trading agreements driving momentum – Volume growth underway – Revenue down 1% in H1 2025 — a marked improvement on contracti
Slide 7: Landscaping Products
Building Tomorrow’s World Landscaping Products Executing our strategy and Landscaping performance improvement plan at pace − Actions taken have delivered a clear improvement in year- on-year revenue trends - starting to see improved order intake for commercial value-add products − Made good progress
Slide 8: Landscaping - Brand Powerhouse
Building Tomorrow’s World Landscaping - Brand Powerhouse Medium term revenue growth target Accelerated network optimisation plans deliver approximately £9 million annualised savings – around £3 million realised in 2025 + 1-3% market outperformance Partial site closure completed – £3 million annualis
Slide 9: Landscaping - Brand Powerhouse
Building Tomorrow’s World Landscaping - Brand Powerhouse Medium term revenue growth target Landscaping leadership team has led a business-wide reset and is positioning business to deliver improved margins + 1-3% market outperformance Volume growth – New trading agreements with key distribution partn
Slide 10: Landscaping - Brand Powerhouse
Building Tomorrow’s World Landscaping - Brand Powerhouse Medium term revenue growth target Landscaping leadership team has led a business-wide reset and is positioning business to deliver improved margins + 1-3% market outperformance Improving product mix in commercial Portfolio simplification on tr
Slide 11: Half year financial results
SECTION Half year financial results 11
Slide 12: Financial headlines
Building Tomorrow’s World Financial headlines Revenue growth of 4% but weaker Landscaping Products performance impacts profitability £319.5m 4% 6.6p Adjusted Revenue basic EPS 16% Interim £28.4m 2.2p Adjusted operating 16% dividend 15% profit Pre-IFRS Adjusted PBT £22.0m 17% 16 net debt £151.6m £4.2
Slide 13: Group revenue
Building Tomorrow’s World Group revenue Return to revenue growth in H1: year-on-year increase of 4% – Group revenue increase of 4%: improving trends in Revenue (£'m) Landscaping and Building Products and continued good performance in Roofing Products – Landscaping revenue contracted by 1%: significa
Slide 14: Group adjusted operating profit
Building Tomorrow’s World Group adjusted operating profit Profit growth in Roofing and Building Products, offset by a contraction in Landscaping Products – Operating profit contracted by £5.6 million: growth Adjusted operating profit (£'m) in Building and Roofing Products offset by Landscaping Produ
Slide 15: Landscaping Products
Building Tomorrow’s World Landscaping Products Improved revenue trend but continued profitability challenge - acceleration of network optimisation plans – Revenue reduction of 1% year-on-year to £135.4 2025 £’m Change % million: much improved on 11 per cent reduction in H2 2024 Revenue 135.4 1% – Be
Slide 16: Building Products
Building Tomorrow’s World Building Products Strong Water Management and Mortars performances deliver profitable growth – Revenue growth of 6%: an increase from flat 2025 £’m Change % revenues in H2 2024 – Key drivers of the increase in revenue were good Revenue 86.4 6% growth in Water Management and
Slide 17: Roofing Products
Building Tomorrow’s World Roofing Products Strong H1 performance with revenue growth delivering increased operating profit – Revenue growth of 11% in H1, following strong 2025 £’m Change % performance in H224: • Continued strong revenue growth of c.50% from Revenue 97.7 11% Viridian Solar driven by
Slide 18: Adjusted profit before taxation and earnings per share
Building Tomorrow’s World Adjusted profit before taxation and earnings per share Profitability lower reflecting impact of weaker Landscaping Products profitability – Operating profit contracted by 16% to £28.4 million, 2025 £’m Change % with growth in Roofing and Building Products offset by weaker p
Slide 19: Net debt
Building Tomorrow’s World Net debt Continued focus on financial discipline and reducing net debt – Strong operating cash conversion of 94%, reflecting Pre-IFRS 16 net debt (£’m) a seasonal and strategic investment in working capital – Finance and tax payments totaled £12.0 million – Capital expendit
Slide 20: Ongoing capital discipline
Building Tomorrow’s World Ongoing capital discipline Good control of working capital; medium-term target to rebuild ROCE to c.15%; significant liquidity – Continued strong management of working capital: 2025 £’m YoY change debtor and creditor days improved year-on-year – Adjusted ROCE of 7.3% reflec
Slide 21: Capital allocation policy
Capital allocation policy Clear unchanged policy focused on optimising shareholder value 1 2 3 4 5 Investment to Organic enhance Balance sheet Selective Dividends growth competitive deleveraging acquisitions advantage Strategic plan Transform & Grow Maintain dividend No reduction in net Selective bo
Slide 22: Strategy update
SECTION Strategy update 22
Slide 23: Transform & Grow: Building Tomorrow's World
Best in class technical and design support Our purpose: Our strategy: Building Tomorrow’s World Transform & Grow Customers Carbon leadership who value our unique Leading brands set of capabilities Business excellence Leadership in ESG Great place to work 2-4% market 15% operating 90% 0.5 -1.5x 2x ca
Slide 24: Marshalls' future growth is underpinned by a more diverse group
Building Tomorrow’s World Marshalls’ future growth is underpinned by a more diverse group with balanced exposure to our end markets End market exposure by revenue Reporting segments by revenue Landscaping Products Building Products Roofing Products 10% 30% 30% 30% 42% 51% 45% Marshalls 39% 4% Group
Slide 25: Our businesses have enviable market share positions
Building Tomorrow’s World Our businesses have enviable market share positions with strong differentiated Marshalls brand propositions and significant headroom for growth Other Landscaping Roofing Solar Water Management Bricks Concrete Natural stone Concrete and clay tiles In-roof Residential Infrast
Slide 26: Our Business Units each have a clear strategic imperative
Building Tomorrow’s World Our Business Units each have a clear strategic imperative Portfolio role Business units Strategic imperative Marshalls Drive greater value from distinctive national specification pull model Landscaping Brand Powerhouses Marley Strengthen roofing heartlands and drive share i
Slide 27: Roofing - Brand Powerhouse
Building Tomorrow’s World Medium term revenue growth target Roofing - Brand Powerhouse Investing to reinforce its market leadership position + 1-2% market outperformance Water Management Marshalls Landscaping Improving product quality and Bespoke software development Trialling full roof offer manufa
Slide 28: Viridian Solar - Growth Engine
Building Tomorrow’s World Medium term revenue growth target - Growth Engine Regulatory tailwinds and innovation driving growth + 8-12% market outperformance Part L (2021) opportunity Future Homes Standard opportunity c.135% year-on-year growth Water Management =Marshalls £77m/year Landscaping per 10
Slide 29: Water Management - Growth Engine
Building Tomorrow’s World Medium term revenue growth target Water Management - Growth Engine Delivering growth in its core housing market and winning new + 4-6% market outperformance infrastructure business Strengthening specification capability Winning new infrastructure business – Recruited new ta
Slide 30: Water Management - Growth Engine
Building Tomorrow’s World Medium term revenue growth target Water Management - Growth Engine Delivering growth in its core housing market and winning new + 4-6% market outperformance infrastructure business Accessing AMP 8 cycle investment Investing in future growth – Framework agreements in place w
Slide 31: Bricks - Growth Engine
Building Tomorrow’s World Medium term revenue growth target Bricks - Growth Engine Strengthening our lower carbon bricks offer, the most sustainable + 8-12% market outperformance choice for UK construction Water Marshalls Management Landscaping Advocacy campaign in H2 NPD to strengthen Bricks offer
Slide 32: Summary and outlook
SECTION Summary and outlook 32
Slide 33: 'Transform & Grow' strategy delivers a return to Group revenue growth in subdued markets
Building Tomorrow’s World ‘Transform & Grow’ strategy delivers a return to Group revenue growth in subdued markets Outlook Summary Mindful of continuing uncertainty in the macro-economic Group returned to revenue growth reflecting early progress of environment, we currently see no improvement in mar
Slide 34: Appendices
APPENDICES 34
Slide 35: Shareholder value creation: investment case
Building Tomorrow’s World Shareholder value creation: investment case Group positioned Profit growth Highly cash Free cash Profitable to outperform the delivered through generative flow de-levers growth increases construction market operational leverage business model balance sheet shareholder retur
Slide 36: Funding and liquidity
Building Tomorrow’s World Funding and liquidity Sustained reduction in net debt with significant liquidity and covenant headroom Pre-IFRS 16 net debt (£’m) – Syndicated bank facility of £315 million – principally matures in April 2027 – Net debt of £191.9 million and £151.6 million on a pre-IFRS16 b
Slide 37: Results summary
Building Tomorrow’s World Results summary ‘Transform & Grow’ strategy delivers a return to Group revenue growth despite ongoing challenges in Landscaping Products Change £’M H1 2025 H1 2024 % Revenue 319.5 306.7 4% Adjusted results EBITDA 42.9 50.6 (15%) Operating profit 28.4 34.0 (16%) Profit befor
Slide 38: Adjusted profit before taxation and earnings per share
Building Tomorrow’s World Adjusted profit before taxation and earnings per share Bridge of reported result to adjusted result 2025 2025 2025 2024 2024 2024 £’m Reported Adjusting Adjusted Reported Adjusting Adjusted Operating profit 18.1 10.3 28.4 28.9 5.1 34.0 Net finance costs (6.4) - (6.4) (7.4)
Slide 39: Adjusting items charged to profit before taxation
Building Tomorrow’s World Adjusting items charged to profit before taxation 2025 2024 £’m £’m 1. Amortisation of acquired intangible assets (5.2) (5.2) 2. Impairment charges, restructuring charges and similar costs (5.1) – 3. Additional contingent consideration - (1.6) 4. Significant property sale -
Slide 40: Disclaimer
Building Tomorrow’s World Disclaimer – For the purposes of the following disclaimer, references to this “presentation” shall be – By their nature, forward-looking statements involve risks, uncertainties and assumptions deemed to include references to the presenters’ speeches, the question and answer