Marshalls H1 2026 results, published on 10 August, showed adjusted pre-tax profit climbing 13.2% to £24.9 million even as revenue edged down 0.5% to £317.8 million for the six months to 30 June. Shares in the Yorkshire-based building products group (MSLH) fell 2% on the day, reversing part of a run-up into the announcement.
Adjusted operating profit rose 8.1% to £30.7 million, lifting the adjusted operating margin from 8.9% in H1 2025 to 9.7%, according to Kalkine’s analysis of the half-year figures. Adjusted basic earnings per share rose 14.4% to 7.6p.
Cost Discipline Drives Marshalls H1 2026 Results Above Expectations
Adam Vettese, market analyst at eToro, said: ‘Revenue edged down 0.5% to £317.8 million as subdued demand, especially in new build housing, continued to bite. However, adjusted pre-tax profit rose a solid 13% and earnings per share climbed around 14%, driven by cost savings and lower finance costs. The key landscaping division delivered better profitability thanks to its performance improvement plan, pricing discipline and market-share gains, even if volumes were softer. Full-year guidance was maintained and the interim dividend lifted.’
The interim dividend was raised 13.6% to 2.5p per share, maintained at two times cover of adjusted earnings, according to Quartr’s earnings summary. That follows a 16% dividend cut in full-year 2025, when total payout fell to 6.7p as the group absorbed restructuring charges.
Adjusted EBITDA reached £44.0 million in the half, with annualised operating cash conversion running at 98%. Net debt fell by approximately £15 million to £137 million over the period, according to data from Investing.com.
The group refinanced its £270 million facility in November 2025 with no change in commercial terms, reinforcing its funding position into the medium term, as disclosed in Marshalls’ investor year-in-review.
Divisional Picture: Solar Gains, Bricks Under Pressure
The landscaping division remains on track to deliver £11 million of annualised cost savings by year-end. Roofing held up: Marley gained share in a competitive concrete tile market, and Viridian Solar grew revenue 7% in the half as tighter building regulations took hold.
That 7% figure represents a deliberate moderation. Viridian grew revenue approximately 32% in full-year 2025 as activity ramped under Part L (2021) energy efficiency rules, but growth is expected to slow through 2026 as the ramp-up nears completion, according to FT Markets’ results announcement data.
Building products were more mixed. Mortars and screeds proved resilient, but weak new-build housing demand weighed on bricks and masonry. Water management also felt that pressure, though the division is being repositioned for infrastructure-led growth tied to the water companies’ AMP8 investment programme.
For context, full-year 2025 adjusted operating profit fell 15% to £56.4 million and adjusted pre-tax profit dropped 16% to £43.7 million, as disclosed in the Marshalls investor year-in-review. The H1 2026 performance marks a clear step in the opposite direction, though off a depressed base.
Adjusting items in H1 2026 totalled £5.2 million, all relating to non-cash amortisation of acquisition intangibles. Reported pre-tax profit, after those charges, rose 68.4% to £19.7 million.
Guidance Held, But No Recovery Assumed
Marshalls is not banking on any material market recovery in the second half. Full-year adjusted profit guidance remains in the range of £42 million to £46 million, with the company pointing to continued self-help actions and financial discipline to get there.
The guidance range is the key number to watch: achieving the top end would require a second half materially stronger than the first on an adjusted basis, leaving execution in landscaping and any uptick in new-build housing starts as the swing factors into the year-end.
