Marshalls (LSE:MSLH) said its adjusted profit before tax for 2025 is expected to be in line with market expectations, as group revenue increased 2% year on year to £632 million, marking a tentative return to growth amid subdued end-market conditions. Performance varied across divisions, reflecting both ongoing demand pressures and the early benefits of restructuring initiatives.
Landscaping Products revenue declined 1%, with volume growth offset by adverse price and mix effects. By contrast, Building Products and Roofing Products each delivered 4% revenue growth. Building Products benefited from strong demand in water management solutions, while Roofing Products saw a standout contribution from Viridian Solar, where annual revenue rose 32%. These gains were partly offset by weaker bricks demand and a softer second half at Marley.
The group continues to execute its Landscaping Products improvement plan, including the exit from UK quarried natural stone processing. This programme is on track to deliver £11 million of annualised cost savings, with £3 million realised during 2025. Management said the lower cost base is already supporting improved competitiveness, helping to drive volume growth and protect market share.
Marshalls’ balance sheet remains resilient, with pre-IFRS 16 net debt of £138 million and £125 million of undrawn headroom on its refinanced syndicated banking facility. This financial flexibility provides capacity to support both strategic initiatives and operational investment.
While the board does not expect a near-term rebound in underlying market demand, it anticipates improved financial performance in 2026, driven by the benefits of cost savings and continued delivery of the group’s ‘Transform & Grow’ strategy. Under the leadership of newly appointed chief executive Simon Bourne, the company believes it is well positioned to benefit from an eventual recovery in construction markets and longer-term structural growth trends.
From an investment perspective, Marshalls’ outlook is supported by improving margins, solid cash flow generation and a moderate valuation underpinned by a reliable dividend yield. Technical indicators remain mixed, with some short-term positive momentum tempered by longer-term caution. Recent corporate developments, including leadership changes and insider share purchases, add to a generally constructive medium-term view.
More about Marshalls
Marshalls plc is a long-established UK manufacturer of sustainable solutions for the built environment. The group operates through its Landscaping, Building Products and Roofing Products divisions, serving construction and infrastructure markets via a nationwide manufacturing and distribution network, with a strategic focus on ESG leadership, low-carbon products and operational excellence.
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