Grafton (GN5) Q2 2026 Earnings Report
DE:GN5 Q2 2026 EPS Results
- Actual EPS
- EUR 0.47
- Consensus EPS
- EUR 0.47
- Beat/Miss
- Met expectations
- One Year Ago EPS
- EUR 0.43
DE:GN5 Q2 2026 Revenue Results
- Actual Revenue
- EUR 1.60B
- Expected Revenue
- EUR 1.64B
- Beat/Miss
- Missed by -EUR 40.89M
- YoY Revenue Growth
- +6.67%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 09/03/2026
- Time
- Before Open
- Conference Call
- Thursday, September 3, 2026
Grafton's next earnings date is estimated for March 11, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
The call was predominantly positive: the group delivered solid revenue, profit and EPS growth, increased the interim dividend, generated strong cash flow, completed well-performing acquisitions and reaffirmed full-year guidance and long-term targets. These strengths outweighed the significant challenges in Great Britain, subdued conditions in the Netherlands, higher finance and tax costs, inflationary pressures and lower ROCE.
The group reconfirmed full year operating profit guidance between NOK 190 million and NOK 200 million, currently expects a finance charge of £15 million to £16 million, and said the effective tax rate of 19.8% is its assumed rate for the full year; it proposed to increase the interim dividend by 2% to 11p per share, after also stating that it increased the interim dividend by 2.3%. For H2, it expects to continue to perform strongly in the Republic of Ireland, no significant uplift in Northern Ireland, Great Britain market conditions to remain unchanged compared to the first half, Dutch market conditions to be similar to the first half, the gradual recovery in Finland to continue, and continued strong growth in Spain. It expects product inflation on the heavy building material side to be probably closer to 4%, I would say, than 3%, and said 70% to 80% would be a reasonable level and an expectation level for free cash conversion, while 15% to 20% would be a reasonable level of drop through in a recovery. Its 2030 ambitions are CHF 850 million-plus free cash flow cumulatively until the end of 2030, an EPS CAGR greater than 10%, and a normalized markets ROCE of 13% or more by 2030; in Iberia, its target is €1 billion of revenue and a 7% to 10% operating margin.
- Solid First-Half Group PerformanceRevenue increased 6.7% to £1.34 billion, adjusted operating profit rose 8.2% to £98.5 million, and adjusted earnings per share increased 10.8% to 39.4p.
- Dividend Increase and Reaffirmed GuidanceThe interim dividend was increased by 2.3% in the opening remarks and later described as a 2% increase to 11p per share. Full-year operating profit guidance was reaffirmed at between NOK 190 million and NOK 200 million.
- Resilient Operating MarginThe adjusted operating margin before property profits was 7.4%, up 10 basis points year on year, despite ongoing competitive pressures in several markets. Margin management, cost-base actions, supplier engagement and pricing actions helped protect margins.
- Successful AcquisitionsThe group completed two acquisitions in faster-growing European markets: Signum in Ireland and Merkeluth in Spain. Both were described as trading strongly year to date, with integration progressing well and performance in line with expectations.
- Acquisition Revenue ContributionAcquisitions contributed £56 million of incremental first-half revenue, including the seasonally important May and June period at Merkeluth, a full second quarter from Signum and the incremental contribution from HSS Hire Ireland.
- Strong Island of Ireland PerformanceIsland of Ireland revenue increased 7.5% on a constant-currency basis to £579.4 million, with like-for-like revenue growth of 3.4%. Adjusted operating profit rose 7.3% on a constant-currency basis to £60.6 million, supported by Chadwick's and the HSS Hire Ireland and Signum acquisitions.
- Signum Growth and Strategic FitSignum first-half sales increased 18.3% on a pro forma basis, driven by additional production capacity brought on stream shortly before completion. The business provides made-to-order off-site timber-frame solutions, extends Chadwick's product offering and benefits from procurement and customer-access synergies.
- Signum Capacity and Irish Timber-Frame OpportunityManagement stated that Signum has sufficient existing capacity to significantly grow in the medium term. Timber frames accounted for 66% of new scheme housing commencements in Ireland, and management said there is further opportunity for timber-frame penetration to grow.
- Island of Ireland Network ExpansionThe group opened a new Woody store in Ennis and a new Chadwick Specialist Hub in Ravenhill, Belfast, bringing the paneling center and Sitetech together in a single location.
- Northern Europe StabilizationNorthern Europe revenue increased 0.7% on a constant-currency basis to £244.2 million, while average daily like-for-like sales grew 0.8%. Improved profitability in Finland more than offset a modest reduction in the Netherlands, and adjusted operating profit increased to £16.3 million with the margin unchanged at 6.7%.
- Finland Recovery SignsFinland showed encouraging early recovery signs, supported by improving consumer spending, exports and business investment, together with targeted management actions.
- Iberia Growth AccelerationIberia revenue increased 35.5% on a constant-currency basis to £145.1 million. Salvador Escoda's average daily like-for-like sales grew 6.6%, supported by strong market demand, record first-half temperatures in Spain and robust execution across air-conditioning, refrigeration and ventilation.
- Merkeluth Early Trading and ExpansionMerkeluth's average daily like-for-like sales increased 0.7% on a pro forma basis across May and June. The business had 20 locations in Spain, including nine opened in the preceding 18 months, and its local management team remained in place. Management said normalized margins for Salvador Escoda and Merkeluth together would be around 9% to 10%.
- Iberia Branch Expansion and PipelineSalvador Escoda opened five branches in the first half and planned two further openings for the year, while Merkeluth opened another branch after acquisition. Management said Salvador Escoda branch openings require a relatively modest investment and normally contribute after 12 months, and that there is a strong pipeline of further organic and inorganic opportunities in Iberia.
- Strong Cash Generation and Balance SheetThe group generated £70.7 million of first-half free cash flow, representing 72% conversion of adjusted operating profit into cash. At the end of June, net debt was £315 million and lease-adjusted net debt to EBITDA was just under 1x.
- Shareholder Returns and Capital AllocationThe group returned a net £75.5 million to shareholders through dividends and buybacks. Share buybacks of £25.6 million were executed in the first half out of a current-year total announced amount of £50 million. Management said the balance sheet provides significant firepower for organic and inorganic development.
- Continued Business InvestmentThe group invested £23 million in net replacement and development capital expenditure during the first half and continued opening branches, particularly in Iberia and Ireland, to maintain its competitive edge during market weakness.
- Selco Distribution-Center InvestmentA new centralized distribution center for Selco is expected to come on stream next year. Management described it as an important investment and said it should provide a significant efficiency improvement and additional capacity for own-brand sourcing once fully operational.
- Strategic Model and Long-Term TargetsManagement maintained its strategy of combining organic growth in structurally attractive markets with acquisitions through a federated operating model. The group remains committed to its 2030 ambitions of CHF 850 million-plus cumulative free cash flow, EPS CAGR greater than 10% and normalized-market ROCE of 13% or more, and said it remains on track.
- AI and Operational Efficiency InitiativesThe group is using AI across recruitment, marketing and product descriptions, alongside broader work in centralized functions. Management said the focus is on both productivity and quality, with the aim of becoming more efficient without adding additional resources when volumes recover.
- Supply Chain ResilienceThe group reported no material disruption from developments in the Middle East, stating that supply-chain risks were being managed proactively and product availability remained strong.
DE:GN5 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 11, 2027 | 2026 (Q4) | ―- | 0.42 | ― | ― |
| Sep 03, 2026 | 2026 (Q2) | 0.470.47 | 0.43 | 10.99% (+0.05) | |
| Mar 05, 2026 | 2025 (Q4) | ―0.42 | 0.39 | 8.31% (+0.03) | |
| Sep 04, 2025 | 2025 (Q2) | 0.430.43 | 0.4 | 6.29% (+0.03) | |
| Mar 06, 2025 | 2024 (Q4) | ―0.39 | 0.48 | -18.34% (-0.09) | |
| Aug 29, 2024 | 2024 (Q2) | ―0.40 | 0.46 | -12.34% (-0.06) | |
| Mar 07, 2024 | 2023 (Q4) | ―0.48 | 0.52 | -8.51% (-0.04) | |
| Aug 31, 2023 | 2023 (Q2) | ―0.46 | 0.55 | -16.81% (-0.09) | |
| Mar 02, 2023 | 2022 (Q4) | ―0.52 | 0.46 | 13.28% (+0.06) | |
| Aug 25, 2022 | 2022 (Q2) | ―0.55 | 0.6 | -9.13% (-0.06) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
