Grafton Group Plc · LSE:GFTU
Grafton — H1 2026 Earnings Presentation
39 slides from Grafton's earnings presentation, Jun 30, 2026
Slide 1: Half Year Results for the six months ended 30 June 2026
Grafton Group plc Half Year Results For the six months ended 30 June 2026 1
Slide 2: Agenda
H1 2026 operational highlights 5 H1 2026 financial review 7 Strategy update & outlook 21 Appendices 31 Agenda Grafton Group plc – Interim Results 2026
Slide 3: Forward-looking statements
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)," "may," "will," "should," "could," "wo
Slide 4: Eric Born, CEO and David Arnold, CFO
Eric Born David Arnold Chief Executive Officer Chief Financial Officer 4 Grafton Group plc – Interim Results 2026
Slide 5: H1 2026 Operational Highlights
H1 2026 OPERATIONAL HIGHLIGHTS Eric Born, Chief Executive Officer 5
Slide 6: H1 2026 performance and Group development progress
H1 2026 performance Progress on Group development activities • Growth across KPIs: • Two acquisitions completed • In Europe’s fastest-growing markets • Revenue +6.7% • Strong early trading and market dynamics • Adj. operating profit +8.2% • Adj. EPS +10.8% • Investment in new branches Group-wide • I
Slide 7: H1 2026 Financial Review
H1 2026 FINANCIAL REVIEW David Arnold, Chief Financial Officer 7
Slide 8: H1 2026 income statement summary
£’m H1 2026 H1 2025 Change Revenue 1,335.9 1,252.4 +6.7% Adjusted operating profit pre property profit 98.3 91.0 +8.0% Adjusted operating profit margin pre property profit margin 7.4% 7.3% +10bps Property profit 0.2 - - Adjusted operating profit 98.5 91.0 +8.2% Adjusted operating profit margin 7.4%
Slide 9: Earnings enhancing acquisitions key driver of H1 sales growth
Earnings enhancing acquisitions key driver of H1 sales growth 23 1,336 13 Small impact from disposal of 11 (3) non-core MFP piping business in 32 Ireland in May 2025 Positive FX impact due to £’m 8 1,252 strengthening of the Euro against GBP 2025 Organic Mercaluz HSS Hire Cygnum Divestments - FX 202
Slide 10: Like-for-like diversified portfolio providing resilience
Like-for-like 45 Diversified portfolio providing resilience throughout the cycle 40 35 Strong performance in Island of 30 Ireland and Iberia more than 25 offsets weakness in Great Britain 20 18.6 £’m 15 Northern Europe growth largely 10 6.0 7.7 driven by Finland (0.7) 5 2.0 Branch rationalisation mo
Slide 11: Operating margin improved to 7.4% in H1
Operating margin improved to 7.4% in H1 Growth supported by acquisitions 1.7 98.5 including key seasonal trading 2.7 0.2 months in Mercaluz 1.2 6.5 91.0 LFL decline driven by trading in Great Britain, offset by £’m 0.3 management actions and better (4.1) (1.0) conditions elsewhere Like-for-Like Dive
Slide 12: Like-for-like operating profit by region
Growth in Island of Ireland largely driven by strong trading in Chadwicks Decline in Great Britain with all BUs reporting lower results compared to 2025 2.0 1.3 0.0 0 Iberia ahead due to continued growth in Salvador Escoda £’m (2.0) (4.0) 1.1 Central/Other costs influenced by 0.6 (4.1) timing 0.1 (6
Slide 13: Island of Ireland
• LFL revenue up 3.4%, driven by strong performance in Chadwicks and modest growth in Woodie’s against tough comparatives Constant • Strong profit growth driven by £’m H1 2026 H1 2025 Change currency acquisitions and Chadwicks Revenue 579.4 525.5 +10.3% +7.5% • Cygnum integration progressing to plan
Slide 14: Great Britain
• Construction markets remain very challenging, with subdued housebuilding and RMI activity • LFL revenue down 5.1%, with declines across all businesses £’m H1 2026 H1 2025 Change • Gross margin improved slightly Revenue 367.2 387.1 (5.1%) through disciplined margin management despite competitive an
Slide 15: Northern Europe
• Dutch market conditions remained subdued; Finnish economy showed early signs of recovery Constant • LFL revenue up 0.8% largely due £’m H1 2026 H1 2025 Change currency to positive growth in Finland Revenue 244.2 235.6 +3.6% +0.7% • Modest profit growth, with uplift in Finland offsetting weaker per
Slide 16: Iberia
• LFL revenue up 6.6% in Salvador Escoda, supported by strong market demand and good operational execution Constant • Mercaluz acquisition supports a £’m H1 2026* H1 2025 Change currency c.€400m+ revenue Iberian platform, with integration Revenue 145.1 104.2 +39.3% +35.5% progressing to plan and enc
Slide 17: Free cash flow and net debt movement
4.3 (75.5) 166.7 (8.3) (1.8) (15.1) (176.2) (63.6) (22.3) Dividends (£51.1m) Buybacks (£25.6m) +£70.7m free cash flow (H1 2025: +£78.0m) Issued Share Capital Proceeds £1.2m 72% free cash flow conversion (H1 2025: 86%) 31-Dec-25 EBITDA Working Payment of Replacement Property Development Net M&A Retur
Slide 18: Balance sheet
30 June 31 December £’m 2026 2025 Goodwill and intangible assets 941.8 790.4 Right-of-use assets 362.6 366.3 Tangible assets 416.3 410.9 Working capital 342.0 289.5 Other liabilities (130.6) (92.5) Pension asset/(deficit) 14.3 7.6 Capital employed 1,946.3 1,772.1 Net cash excluding leases 78.3 274.0
Slide 19: Balance sheet
30 June 31 December £’m 2026 2025 Goodwill and intangible assets 941.8 790.4 Right-of-use assets 362.6 366.3 Tangible assets 416.3 410.9 Working capital 342.0 289.5 Other liabilities (130.6) (92.5) Pension asset/(deficit) 14.3 7.6 Capital employed 1,946.3 1,772.1 Net cash excluding leases 78.3 274.0
Slide 20: Balance sheet
30 June 31 December £’m 2026 2025 Goodwill and intangible assets 941.8 790.4 Right-of-use assets 362.6 366.3 Tangible assets 416.3 410.9 Working capital 342.0 289.5 Other liabilities (130.6) (92.5) Pension asset/(deficit) 14.3 7.6 Capital employed 1,946.3 1,772.1 Net cash excluding leases 78.3 274.0
Slide 21: Strategy Update & Outlook
STRATEGY UPDATE & OUTLOOK Eric Born, Chief Executive Officer 21
Slide 22: The Grafton Way
THE GRAFTON WAY OUR FEDERATED OPERATING OUR PURPOSE & VALUES OUR GROWTH STRATEGY MODEL • We provide our trade customers in • Long term organic growth • Supported and enabled by our Europe with construction related Structural growth drivers federated operating model and products and solutions inves
Slide 23: Region, country and model selection
PORTFOLIO OF TRADE FOCUSED REGION / COUNTRY MODEL SELECTION BUSINESSES IN EACH SELECTION GEOGRAPHY • GDP, population growth • Profitability & return potential of • Strong, empowered teams • Structural housing shortage distributors • Differentiated models with trusted • Improvement need in existing •
Slide 24: Federated operating model
Strong controls Performance Governance Best practices Standards Expert knowledge Policies Capital allocation ISLAND OF GREAT NORTHERN IBERIA IRELAND BRITAIN EUROPE Margin Customer- Local Operational Clear common Policies, procedures Disciplined management centric execution excellence standards and c
Slide 25: HSS Hire / HVAC distributor acquisition
• Leading distributor of HVAC equipment to professional installers • Focused product offering delivered through larger locations, complementing Salvador Escoda's ‘one-stop-shop’ model • Strong Johnson own-brand range, which accounted for 75% of 2025 sales, continues to grow • Rapid expansion with 9
Slide 26: Cygnum timber frame acquisition
• Leading supplier of made-to-order offsite timber frame solutions • Expands exposure to Ireland's growing new-build market and broadens Cygnum's offering to customers via Chadwicks network • State-of-the-art manufacturing facility in Macroom, Co Cork • Experienced management team remaining in place
Slide 27: Our 2030 ambitions
H1 2026 OUR 2030 AMBITIONS FREE CASH FLOW FREE CASH FLOW £70.7m (CUMULATIVE £850M+ 2026-30) ADJUSTED EPS EPS 10.8% (2025-30)1 >10% CAGR GROWTH ROCE ROCE 10.7% (2030) ~13% Notes: 1) CAGR calculated based on 2025 Adjusted EPS of 73.8p (excluding property profit). 27 Grafton Group plc – Interim Results
Slide 28: H2 2026 outlook
Average daily like-for-like revenue change H2 2026 outlook in constant currency H1 1 July 2026 - Island of • Positive ROI construction outlook 2026 23 August 2026 Ireland • No significant uplift expected in Northern Ireland in H2 • H2 market conditions expected to be unchanged vs H1 Island of Irelan
Slide 29: Summary and guidance reaffirmed
• Resilient performance in H1 • Recent acquisitions performing well and in line with expectations • Continue to execute our strategy to grow organically and via M&A • Reaffirm FY 2026 adj. operating profit guidance and remain on track to deliver 2030 targets 29 Grafton Group plc – Interim Results 20
Slide 30: Questions
QUESTIONS 30
Slide 31: Appendices
APPENDICES Group Ble 31
Slide 32: Notes and Definitions
Notes As amounts are reflected in £’m some immaterial rounding differences may arise. Definitions • Adjusted earnings per share is earnings before exceptional items, • Free cash flow is cash generated from operations less replacement acquisition related items, intangible asset amortisation arising o
Slide 33: 2026 financial guidance assumptions
• Finance Charge: c.£15m-£16m • Tax Rate: Underlying tax rate of c.19.8% subject to further acquisitions and change in assumptions in respect of prior years • Depreciation and asset amortisation (excluding IFRS 16 & acquired intangibles): c.£55m • Depreciation and amortisation incl. right of use ass
Slide 34: Average Daily Like-for-Like Revenue Change
Average Daily Like-for-Like Revenue Change Total Revenue Q1 Q2 H1 1 January – 30 June 2026 Constant Sterling Currency Island of Ireland 1.6% 5.2% 3.4% 7.5% 10.3% Great Britain (5.2%) (4.9%) (5.1%) (5.1%) (5.1%) Northern Europe 1.6% 0.1% 0.8% 0.7% 3.6% Iberia 1.7% 10.8% 6.6% 35.5% 39.3% Total Group (
Slide 35: Adjusted to statutory profit reconciliation
£’m H1 2026 H1 2025 Change Revenue 1,335.9 1,252.4 +6.7% Adjusted operating profit pre property profit 98.3 91.0 +8.0% Property profit 0.2 - Adjusted operating profit 98.5 91.0 +8.2% Profit on disposal of Group business - 7.8 Acquisition related expenses (3.2) (0.4) Amortisation of acquired intangib
Slide 36: Reporting structure
During the financial year ended 31 December 2025, the Group has adopted a new reporting structure which better reflects the Group’s strategy. The Group is now organised into four geographical areas: Island of Ireland, Great Britain, Northern Europe and Iberia. The operating segments are now aligned
Slide 37: Revenue by segment
£’000 H1 2026 H1 2025 Change Revenue UK distribution 374,851 394,363 (4.9%) Ireland distribution 376,809 323,824 +16.4% Netherlands distribution 180,595 175,198 +3.1% Spain distribution 145,106 104,170 +39.3% Finland distribution 63,603 60,436 +5.2% Total distribution 1,140,964 1,057,991 +7.8% Retai
Slide 38: Operating profit by segment
£’000 H1 2025 H1 2025* H1 2025 H1 2026 Change Operating Profit Reported Reallocation Restated UK distribution 13,911 3,145 17,056 9,634 (43.5%) Ireland distribution 31,456 - 31,456 39,704 +26.2% Netherlands distribution 13,947 - 13,947 13,261 (4.9%) Spain distribution 6,533 - 6,533 14,140 +116.4% Fi
Slide 39: Thank you
Grafton G Group plc THANK YOU.