Merchant Exchange
Marshalls has reported an increase in profits for the first half of 2026 despite continued weakness across UK construction markets, with improved margins, cost savings and operational efficiencies helping to offset subdued demand.
For the six months to 30 June 2026, revenue was broadly unchanged at £317.8 million, compared with £319.5 million in the same period last year. However, adjusted operating profit increased 8.1% to £30.7 million, while adjusted profit before tax rose 13.2% to £24.9 million.
The strongest improvement came from the Group’s Landscaping Products division, where profitability recovered significantly despite challenging market conditions.
Revenue remained broadly flat at £135.1 million, but operating profit increased to £5.5 million, compared with just £0.3 million a year earlier. Operating margin improved to 4.1%, supported by stronger gross margins, lower manufacturing costs and reduced overheads.
Marshalls said its performance improvement programme remains on track to deliver £11 million of annualised cost savings by the end of 2026, while the division has also reported gains in market share and customer satisfaction.
The Group’s Building Products division faced more challenging conditions, with revenue down 0.9% to £85.6 millionand operating profit falling 10.1% to £6.2 million.
Weak demand from UK housebuilders continued to impact the Water Management and Bricks & Masonry businesses. Mortars & Screeds remained more resilient, while Water Management secured further infrastructure opportunities linked to the UK water sector’s AMP8 investment programme. Sales associated with AMP8 projects more than doubled year-on-year during the first half.
Roofing Products remained the Group’s largest contributor to operating profit, generating £23.1 million, although this was down from £24.8 million in H1 2025. Revenue declined slightly to £97.1 million.
Within the division, Marley Roofing increased its market share despite continued competition in concrete roof tiles, while Viridian Solar recorded 7% revenue growth, supported by demand for integrated solar roofing solutions and the continued adoption of Part L building regulations.
Marshalls said forthcoming changes under the Future Homes Standard could provide further growth opportunities for roof-integrated solar technologies over the coming years.
Despite the improvements, the Group does not expect a significant recovery in construction markets during the second half of 2026. Management has therefore maintained its full-year expectations, with the business continuing to focus on cost control, cash generation and operational efficiency.
Simon Bourne, Chief Executive Officer of Marshalls, said: “We have delivered a resilient first half performance, despite subdued end markets, with adjusted profit growth delivered in line with expectations.
“Landscaping Products demonstrates the clearest evidence of this progress, with our performance improvement plan delivering improved profitability and the business remaining on track to deliver the previously announced £11 million of annualised cost savings by the end of FY26.
“Roofing Products continued to provide a strong contribution, driven by Viridian Solar and disciplined trading in Marley Roofing. Building Products was mixed, with Mortars & Screeds resilient and Water Management positioned for infrastructure-led growth, but weak new build housing demand weighed on both Bricks & Masonry and Water Management performance in the first half.”
He added that Marshalls would remain focused on areas within its control, including service, costs, working capital and capital allocation, rather than relying on a recovery in market conditions.
The Group said its Transform & Grow strategy remains central to its medium-term plans, with the aim of improving margins, strengthening cash generation and ultimately doubling operating profit.
