Grafton expands in Europe despite headwinds in some markets

Grafton Group has delivered a solid set of half-year results for 2025, underlining its ambition to become a leading European building materials distributor. Revenue rose 10 per cent to £1.25 billion, with adjusted operating profit up 9.5 per cent to £91 million. Ireland and Spain powered the performance, where the recently acquired Salvador Escoda is now firmly part of the Group.

Chief executive Eric Born described the outcome as “resilient” in a market that remains patchy across Europe. “Revenue and profit were approximately 10 per cent higher than the same period last year, driven by strong contributions from Spain and Ireland,” he said.

Non-UK markets now generate 64 per cent of Group turnover. Born pointed to the Iberian market – currently centred on Spain – as a key growth platform: “Given our ambition to be a leading player in the European building materials distribution market and our exposure to the growing and fragmented Iberian market, we would expect that diversification trend to continue.”

In Ireland, Chadwicks and Woodie’s turned in strong results, supported by resilient consumer demand and the bolt-on acquisition of HSS Hire Ireland. The UK arm posted its first profit growth since 2021, despite a sluggish repair, maintenance, and improvement (RMI) sector. In the Netherlands, momentum slowed after a promising start, while Finland remained under pressure from weak demand, adverse weather, and operational challenges.

Grafton’s net cash position of £246 million before leases provides significant capacity for both organic expansion and acquisitions. Since 2022 the Group has returned over £403 million to shareholders through buybacks, with another £25 million programme now launched.

Looking ahead, Born acknowledged that trading softened in late spring but noted that July and August brought a return to like-for-like growth. With the crucial autumn season approaching, he expects full-year profit to be broadly in line with analyst forecasts

For details, see the website of the Grafton Group.