Grafton Group Plc · LSE:GFTU
Grafton — H1 2025 Earnings Presentation
34 slides from Grafton's earnings presentation, Jun 30, 2025
Slide 1: Grafton Group plc Half Year Results
Grafton Group plc Half Year Results For the six months ended 30 June 2025
Slide 2: Agenda
H1 2025 operational highlights 5 H1 2025 financial review 7 Outlook & strategy update 23 Appendices 29 Agenda Grafton Group plc – Interim Results 2025 2
Slide 3: Forward-looking statements & notes
Forward-looking statements & notes Forward-looking statements This presentation may include forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "outlook," "believe(s),"expect(s)," "potential," "continue(s)," "m
Slide 4: Presenting today
Presenting today Eric Born David Arnold Chief Executive Officer Chief Financial Officer Grafton Group plc – Interim Results 2025 4
Slide 5: H1 2025 operational highlights
H1 2025 operational highlights Eric Born, Chief Executive Officer
Slide 6: H1 2025 operational highlights
H1 2025 operational highlights Return to organic revenue growth (+2.4% LFL sales) • Resilient performance – strong contributions from Spain and Ireland • Return to profit growth in UK Distribution for the first time since 2021 • Diversification trend to continue – almost two thirds of revenue non-UK
Slide 7: H1 2025 financial review
H1 2025 financial review David Arnold, Chief Financial Officer
Slide 8: Financial takeaways and outlook
Financial takeaways and outlook H1 performance Outlook Return to profit growth H2 outlook Adjusted operating profit +9.5% Continued growth in Ireland and Spain Adjusted EPS +6.5% Market conditions elsewhere similar to H1 Robust Balance Sheet FY 2025 guidance Strong free cash conversion Adjusted oper
Slide 9: H1 2025 financial highlights
H1 2025 financial highlights £’m H1 2025 H1 2024 Change Revenue 1,252.4 1,137.2 +10.1% Adjusted operating profit pre property profit 91.0 83.1 +9.5% Property profit - - Adjusted operating profit 91.0 83.1 +9.5% Adjusted operating profit margin 7.3% 7.3% - Net finance (cost)/income (4.2) 0.3 n/m Adju
Slide 10: Revenue bridge – H1 2024 to H1 2025
Revenue bridge – H1 2024 to H1 2025 1,300 Acquisition growth 106 mainly driven by 1,252 1,250 (9) Salvador Escoda Negative FX impact 1,200 due to weakening of the Euro against GBP 18 1,150 £’m 1,137 1,100 1,050 1,000 2024 Organic Acquisitions FX 2025 Movement Grafton Group plc – Interim Results 2025
Slide 11: Analysis of organic movement in revenue (constant currency)
Analysis of organic movement in revenue (constant currency) – H1 2024 to H1 2025 20 Like-for-like 18 1 18 Irish businesses 2 maintain strong 16 9 performance 14 Slow recovery 12 emerging in the UK; 10 2 Finland remains challenging £’m 9 8 6 (4) Six new branches 4 added across the 2 Group in 2024/202
Slide 12: Adjusted operating profit – H1 2024 to H1 2025
Adjusted operating profit – H1 2024 to H1 2025 Acquisitions: Profit contribution from Salvador Escoda in H1 in line with expectations. HSS 6.7 91.0 Hire Ireland – one (0.5) month trading only. £’m £’m 2.2 83.1 (0.5) 2024 Like-for-Like Net New Acquisitions FX 2025 Business Branches Grafton Group plc
Slide 13: Analysis of movement in adjusted operating profit in like-for-like business
Analysis of movement in adjusted operating profit in like-for- like business – H1 2024 to H1 2025 5 Strong growth in 4 Ireland underpinned by 2.0 expansion in operating 1.8 margins 3 2.2 UK Distribution returns (1.0) (0.9) to profit growth for first 2 £’m time since 2021 1.2 2.0 Performance in 1 Fin
Slide 14: Ireland Distribution
Ireland Distribution • Business performed well in H1 against a broadly flat construction market • LFL revenue up 3.7% supported by Constant product price inflation of 3.5% £’m H1 2025 H1 2024 Change currency Revenue 323.8 317.2 +2.1% +3.5% • Gross margin improved due to active commercial management
Slide 15: UK Distribution
UK Distribution • Return to profit growth for first time since 2021 with operating margin up 30bps compared to H1 2024 • RMI demand continued to be weak especially in and around London – LFL £’m H1 2025 H1 2024 Change revenue growth of 0.2% with product price inflation of 1.9% Revenue 394.4 394.4 -
Slide 16: Netherlands Distribution
Netherlands Distribution • LFL revenue growth of 2.8% – momentum eased following strong start to year reflecting ongoing market uncertainty Constant • Gross margin improved due to active £’m H1 2025 H1 2024 Change currency commercial management despite adverse mix effect Revenue 175.2 175.2 - +1.4%
Slide 17: Spain Distribution
Spain Distribution • Integration progressing well with trading performance in line with expectations • LFL revenue rose 6.9% (proforma) supported by strong project sales and a £’m H1 2025 growing market Revenue 104.2 • Spain continues to be one of the fastest- Adjusted operating profit1 6.5 growing
Slide 18: Finland Distribution
Finland Distribution • Performance fell short of expectations, impacted by challenging market conditions, adverse weather and temporary operational challenges Constant £’m H1 2025 H1 2024 Change currency • Slower recovery in the Finnish construction market than anticipated Revenue 60.4 65.1 (7.1%) (
Slide 19: Retailing
Retailing • Strong trading performance supported by resilient consumer spending Constant • LFL revenue growth of 7.6% with £’m H1 2025 H1 2024 Change currency increased transaction numbers representing bulk of increase Revenue 138.1 130.7 +5.6% +7.0% • Improved overhead efficiency achieved 1 Adjuste
Slide 20: Manufacturing
Manufacturing CPI EuroMix • Healthy start as housebuilders ramped up output but momentum eased in Q2 • Bulk volumes up 5.7% driven by increased activity on existing sites Constant • Strong profitability growth underpinned by £’m H1 2025 H1 2024 Change currency improved fixed cost absorption Revenue
Slide 21: Analysis of Cash Flow – H1 2025
Analysis of Cash Flow – H1 2025 160.8 4.9 (15.1) (18.8) (10.4) (5.9) (10.0) (14.0) 9.3 (37.5) (79.0) £78.0m free cash flow 86% free cash flow conversion FY24 FY25 H1 Net Debt Net Debt £131.7m £147.3m 0.45x 0.47x Leverage Cashflow supporting shareholder returns Leverage Grafton Group plc – Interim Re
Slide 22: Balance sheet
Balance sheet 30 June 31 December £’m 2025 2024 Goodwill and intangible assets 787.0 769.2 Right-of-use assets 366.2 377.7 Tangible assets 402.8 395.4 Working capital 292.8 280.7 Other liabilities (93.5) (96.5) Pension asset/(deficit) 1.8 1.3 Capital employed 1,757.0 1,727.9 Net cash excluding lease
Slide 23: Outlook & strategy update
Alt 1 Outlook & strategy update Eric Born, Chief Executive Officer
Slide 24: Current trading
Current trading Average daily like-for-like revenue change in constant currency • Strong performance in our Irish businesses 1 July 2025 - • UK Distribution improved from weak trading at H1 2025 24 Aug 2025 end of Q2 – overall similar to H1 Distribution • Trading in the Netherlands impacted by timin
Slide 25: Outlook
Outlook Outlook for economic growth remains positive – notwithstanding impact of US tariffs Ireland Construction market activity in H2 expected to be similar to H1 Strong government support to increase investment in housing and infrastructure Medium-term fundamentals remain positive but no meaningfu
Slide 26: Strategy update – our ambition
Strategy update – our ambition Ireland Further enhance market position through organic expansion and acquisitions UK Capture market recovery and further deploy capital as opportunities arise Netherlands Strengthen market position through organic expansion (eastern Netherlands) and acquisitions Finla
Slide 27: Group well positioned to deliver significant shareholder value
Group well positioned to deliver significant shareholder value Attractive market positions • Strong portfolio of distribution formats mainly focused on SME customers • Supportive market fundamentals; including aged housing stock and housing shortages • Strategic focus to further strengthen in existi
Slide 28: Questions
Questions
Slide 29: Appendices
Appendices G Grafton Group plc
Slide 30: Appendix 1 – Notes & definitions
Appendix 1 – Notes & definitions Notes As amounts are reflected in £’m some immaterial rounding differences may arise. Definitions • Adjusted earnings per share is earnings before exceptional items, • Adjusted operating profit (pre property profit) margin is adjusted acquisition related items, intan
Slide 31: Appendix 2 – FY 2025 technical guidance
Appendix 2 – FY 2025 technical guidance Finance Charge: c.£9m-£10m but remains dependent on further anticipated reduction of interest rates by Central Banks Tax Rate: c.19.5% and trend likely to be upwards toward 21.5% in subsequent years Depreciation and asset amortisation (pre IFRS): c.£50m Deprec
Slide 32: Appendix 3 – Revenue change H1 2025 v H1 2024
Appendix 3 – Revenue change H1 2025 v H1 2024 Average Daily Like-for-Like Revenue Change Six months Total Revenue Q1 Q2 to 30 June 2025 1 Jan – 30 June 2025 Constant Sterling Currency Distribution Ireland +2.9% +4.3% +3.7% +3.6% +2.1% UK (1.9%) +2.0% +0.2% +0.0% +0.0% Netherlands +3.4% +2.2% +2.8% +
Slide 33: Appendix 4 – Income statement statutory reconciliation
Appendix 4 – Income statement statutory reconciliation £’m H1 2025 H1 2024 Change Revenue 1,252.4 1,137.2 +10.1% Adjusted operating profit pre property profit 91.0 83.1 +9.5% Property profit - - Adjusted operating profit 91.0 83.1 +9.5% Profit on disposal of Group business 7.8 0.0 Acquisition relate
Slide 34: Thank You.
Thank You.