Travis Perkins plc (LSE:TPK) has reported a 1.6% decline in group revenue for the third quarter of 2026, reflecting reduced activity across parts of the UK construction market, particularly the new-build residential sector.
The building materials distributor said trading conditions remained affected by macroeconomic uncertainty, with lower construction volumes influencing demand across its Merchanting businesses.
The group continues to focus on managing profitability through pricing measures, cost controls and adjustments to its customer and product mix.
Within Merchanting, Travis Perkins is prioritising higher-margin trade while maintaining credit risk management measures in response to current market conditions.
The company said its businesses have continued passing through input cost inflation where appropriate, helping to offset some of the effects of lower sales volumes on profitability.
However, demand across the construction sector remains subdued, with the new-build residential market identified as a particular area of reduced activity.
The group is also continuing to manage its exposure to customer credit risk, alongside measures intended to maintain operating margins during the period of lower market activity.
Toolstation UK Records Revenue Growth
Trading performance differed across Travis Perkins’ Toolstation operations during the third quarter.
Toolstation UK reported revenue growth during the period, with the business continuing its expansion programme in line with management’s expectations.
The division supplies tools, building materials and related products to professional tradespeople and other customers through its retail and distribution network.
In contrast, Toolstation Benelux continued to experience trading pressures, prompting the group to undertake a strategic review of the business.
The review is intended to assess the challenges facing the Benelux operations and determine potential measures to address their performance.
Travis Perkins has not disclosed the potential outcomes of the review or provided a timetable for any resulting decisions in the supplied update.
Cost Management and Cash Flow Remain Priorities
Alongside its divisional trading activities, Travis Perkins is continuing to implement cost management and operational efficiency measures across the group.
The company said these initiatives are intended to support profitability, improve free cash flow generation and maintain its financial position.
Management remains focused on balancing operating costs with current trading volumes while maintaining the group’s ability to serve customers across its Merchanting and Toolstation businesses.
The measures include ongoing efforts to improve operational efficiency and manage expenditure in response to conditions in the UK construction market.
Travis Perkins also continues to monitor input cost inflation and customer demand, particularly within the residential construction and repair, maintenance and improvement sectors.
The group expects to provide a more detailed update on its strategy alongside its preliminary financial results in March 2027.
The third-quarter trading update reflects differing performances across the business, with revenue growth at Toolstation UK contrasting with lower construction-related demand in Merchanting and continued trading pressures at Toolstation Benelux.
About Travis Perkins plc
Travis Perkins plc (LSE:TPK) is a UK-based distributor of building materials, tools and associated products serving professional tradespeople and construction customers.
The group operates through its Merchanting businesses and Toolstation retail network, supplying products used in residential and commercial construction, refurbishment and property maintenance.
Its activities cover the new-build construction and repair, maintenance and improvement markets.
Toolstation operates in the United Kingdom and the Benelux region, providing tools, accessories and building supplies through its retail and distribution operations.
Travis Perkins focuses on building materials distribution, trade customer services and operational efficiency across its businesses.
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