Marshalls has reported a resilient first-half performance for 2026, delivering higher profits and earnings despite subdued construction markets across the UK. The building products manufacturer said operational improvements, cost-saving initiatives and tighter financial discipline helped offset weak demand in key end markets.
For the six months ended 30 June 2026, revenue was broadly unchanged at £317.8 million, compared with £319.5 million a year earlier. However, adjusted operating profit increased 8.1% to £30.7 million, while adjusted profit before tax rose 13.2% to £24.9 million.
The strongest improvement came from Marshalls' Landscaping Products division, where profitability recovered significantly despite challenging markets.
Revenue in the division remained stable at £135.1 million, but operating profit surged to £5.5 million from just £0.3 million in the prior year. Operating margin improved to 4.1%, reflecting higher gross margins, lower manufacturing costs and reduced overheads.
The company said its performance improvement programme remains on track to deliver £11 million of annualised cost savings by the end of 2026, while gains in market share and customer satisfaction demonstrate improving commercial performance.
Marshalls' Building Products division reported a more challenging period, with revenue declining 0.9% to £85.6 million and operating profit falling 10.1% to £6.2 million.
Weak demand from UK housebuilders continued to affect both Water Management and Bricks & Masonry operations. However, Mortars & Screeds remained resilient, while Water Management made progress in securing infrastructure-related opportunities linked to the UK water sector's AMP8 investment programme. The company said sales related to AMP8 projects more than doubled year on year during the first half.
Roofing Products continued to be Marshalls' largest profit contributor, generating £23.1 million of operating profit, although this was down from £24.8 million in the previous year. Revenue declined slightly to £97.1 million.
Marley Roofing increased market share despite intense competition in concrete roof tiles, while Viridian Solar recorded revenue growth of 7%, benefiting from continued adoption of Part L building regulations and growing demand for integrated solar roofing solutions.
Looking ahead, Marshalls believes forthcoming changes under the Future Homes Standard could significantly expand the market for roof-integrated solar technologies over the coming years.
However, the business does not expect a significant recovery in construction markets during the second half of 2026. Nevertheless, management remains confident that ongoing operational improvements and disciplined cost management will continue to drive performance.
The board reiterated its full-year expectations and said the company's "Transform & Grow" strategy continues to support a medium-term pathway towards stronger margins, improved cash generation and a doubling of operating profit over time.
Despite persistent macroeconomic uncertainty and weak housing activity, Marshalls believes its diversified portfolio, improving operational efficiency and infrastructure-led growth opportunities position the business well for future recovery.
Simon Bourne, Chief Executive Officer, commented: "We have delivered a resilient first half performance, despite subdued end markets, with adjusted profit growth delivered in line with expectations. This reflects our reinvigorated focus on sharper execution, continued financial discipline and the benefits of actions taken through FY25 to create a leaner and more focused operating platform.
"Landscaping Products demonstrates the clearest evidence of this progress, with our performance improvement plan delivering improved profitability and the business remaining on track to deliver the previously announced £11 million of annualised cost savings by the end of FY26. Roofing Products continued to provide a strong contribution, driven by Viridian Solar and disciplined trading in Marley Roofing. Building Products was mixed, with Mortars & Screeds resilient and Water Management positioned for infrastructure-led growth, but weak new build housing demand weighed on both Bricks & Masonry and Water Management performance in the first half.
"We remain focused on what we can control: service, cost, cash, working capital and disciplined capital allocation. We are not factoring a material market recovery into our second half assumptions, and the operational progress delivered to date, together with the strength of our diversified portfolio, supports the Board's confidence in the Group's outlook for the full year and our medium-term growth potential."
