Marshalls Grows Revenue but Focuses on Cost Discipline Under ‘Transform & Grow’ Strategy

Marshalls (LSE:MSLH) reported a 2% increase in revenue for 2025 to £632.1 million, though profitability declined during the year, with adjusted operating profit falling 15% and adjusted profit before tax down 16%. The company reduced its total dividend in response but said results were broadly in line with expectations. Marshalls also maintained leverage at 1.8 times EBITDA and successfully refinanced a £270 million facility on unchanged terms, highlighting the strength of its balance sheet and liquidity as it advances its strategic plans.

The group has accelerated its “Transform & Grow” programme, which prioritises improvements in margins, cash generation and customer service. Within the Landscaping Products division, a broad operational reset delivered cost reductions during the year, alongside 4% volume growth and gains in market share despite subdued conditions in the UK housing and home improvement sectors. The Roofing and Building Products divisions each recorded revenue growth of 4%, supported by strong regulation-driven demand at Viridian Solar and continued progress in the Water Management business. Marshalls said it is focusing resources on operational execution to support a meaningful improvement in profitability and returns over the medium term.

The company’s outlook reflects generally solid financial performance, with improvements in margins and cash flow providing some support. Technical indicators present mixed signals, showing short-term bullish momentum but more cautious longer-term trends. Valuation remains moderate and is supported by a solid dividend yield. Recent corporate developments, including leadership changes and insider share purchases, also contribute positively to the overall outlook.

More about Marshalls

Marshalls plc is a UK-based manufacturer of building products and sustainable solutions for the built environment. The group operates across landscaping, roofing and building products, offering a wide range of materials including paving, water management systems, mortars, bricks, masonry products and solar roofing solutions. Its products serve both new-build construction and home improvement markets, with increasing exposure to regulation-led demand and infrastructure-related projects.