SIG plc (LSE:SHI) reported flat like-for-like sales of £2.6bn for 2025, reflecting continued weakness across construction markets, but delivered an improved operational outcome driven by tighter cost control. Underlying operating profit is expected to rise to around £32m, supported by £39m of underlying operating expense savings and enhanced efficiency across the business.
While construction activity and pricing remained under pressure in key territories including the UK, Germany and Ireland, SIG said it continued to outperform its underlying end markets and gained market share in most regions. Cash generation also improved, with free cash outflow reduced to approximately £12m and year-end liquidity standing at £171m. Net debt increased modestly to around £518m, leaving leverage elevated at 4.7x.
Management has outlined a “Vision 2030” strategy aimed at delivering a through-the-cycle operating margin of between 3% and 5%. The framework prioritises further cost and procurement efficiencies, greater operational leverage as construction markets recover, and portfolio simplification, including the closure of smaller loss-making businesses such as Mayplas. These measures are intended to reshape SIG into a more focused platform for growth within European building materials distribution.
From an outlook perspective, the group continues to face challenges from high leverage and subdued revenue trends. Technical indicators are mixed, showing some short-term momentum against a weaker longer-term picture, while valuation remains constrained by negative earnings and the absence of a dividend. That said, recent corporate actions, including a share purchase by the chief executive and leadership changes, have provided some support to investor sentiment.
More about SIG plc
SIG plc is a leading pan-European distributor of specialist insulation and building products, supplying construction markets across the UK and continental Europe. The group focuses on interiors, roofing and associated building materials, serving both new-build and refurbishment activity through a network of national and regional businesses operating in markets currently at a cyclical low.
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