Travis Perkins (LFPB) Q2 2026 Earnings Report

The call balanced notable operational and financial improvements (gross margin expansion, profit and EPS growth, strong cash and leverage reduction, retained dividend, operational gains in Green & Gold and Toolstation) against persistent market headwinds (weak top line, construction insolvency risk, cost inflation and demand uncertainty). Management emphasized disciplined pricing, procurement and cash focus, delivered tangible H1 results, but guided to a similarly challenging H2. Overall the improvements in profitability, cash and balance sheet are material and give management flexibility, while underlying demand and inflation risks keep the near‑term outlook cautious.

Management guidance and framing from the call was that the group expects an effective tax rate of c.28% on UK profits, base FY26 capital expenditure of £60–70m, full‑year property profits of around £5m (already achieved in H1), and a similar market backdrop and therefore similar H2 trading to H1; the Board is recommending a 4p interim dividend payable 6 November. Key balance‑sheet/earnings metrics cited alongside this guidance were net cash before leases of £55m (net debt £543m), leverage at 1.9x (target range 1.5–2x), adjusted operating profit £62m before property (£67m including property), adjusted EPS 15.1p (up 13.5%), and gross margin up c.100bps, with ongoing focus on capex, cash and working capital.