Travis Perkins (TPK) investor relations material

Executive summary

• Revenue declined 1.8% year-over-year to £2,258m for H1 2026, mainly due to lower volumes, subdued activity, and the prior year disposal of Staircraft, partially offset by price inflation.

• Adjusted operating profit rose 6.3% to £67m, driven by gross margin expansion and disciplined cost management.

• Profit after tax increased 15.4% to £30m compared to H1 2025.

• Net cash before leases stood at £55m, a significant improvement from £103m net debt last year, reflecting strong cash discipline.

• New management team fully established, focused on operational efficiency and margin improvement.

Financial highlights

• Gross margin improved to 27.4% from 26.4% year-over-year, attributed to disciplined price pass-through, sales mix shift, and procurement improvements.

• Adjusted earnings per share increased 13.5% to 15.1p.

• Net debt/adjusted EBITDA improved to 1.9x, within the target range of 1.5x-2x.

• Interim dividend per share reduced to 4.0p from 4.5p last year.

• Free cash flow was £72m, down from £96m prior year.

Outlook and guidance

• Market conditions expected to remain challenging in H2 2026, with similar trading performance anticipated and a continued focus on profitability and cost control.

• Effective tax rate for the year guided at 28% on UK profits.

• Base capital expenditure forecasted at £60-70m for the year.

• Full-year property profits expected to be around £5m.

• Focus remains on operational improvements and cost control.