Grafton Group’s operating profit rose 8.2 per cent in the first half of the year and the builders merchanting and DIY retailing company maintained its outlook for 2026 as a strong performance across the Republic and Iberia offset weakness in the UK, Netherlands and Finland.
Operating profit amounted to £98.5 million (€114.6 million) for the period and the Dublin-based, but London-listed group reiterated its forecast for operating profit to come between £190 million and £200 million or the full year, compared to £190.2 million for 2025.
“Our outlook for the second half is not dissimilar to the first half, with Iberia and Island of Ireland strong, Northern Europe mixed and continuing weakness in Great Britain,” said Grafton chief executive Eric born. “Our medium-term outlook remains very positive supported by structural housing deficits in each of our markets and, in many cases, pent up demand for RMI.”
RMI stands for repair, maintenance and improvement.
The owner of the Woodie’s and Chadwicks chains in Ireland has seen its shares rally more than 25 per cent since Born held a capital markets day for investors in May and set a target to grow earnings per share (EPS) at a compound annual rate of more than 10 per cent out to 2030, driven by ongoing strength in the Irish market and recent acquisitions in Spain, where the economy and construction activity have outpaced the wider European market in recent years.
Grafton made an initial foray into Spain in late 2024, with the €132 million purchase of Barcelona-based air-conditioning and heating products distributor Salvador Escoda. It followed up last month by buying another Spanish air-conditioning company, Mercaluz, which also has sales in Portugal, in a deal worth up to €175 million.
Executives signalled at the capital markets day that they see a big opportunity for more deals in the air-conditioning and other merchanting areas in Iberia, given how fragmented the market is. The group has also committed share buybacks, having spent and committed £455 million since 2022 repurchasing and cancelling stock. Grafton shares remain down 25 per cent from where they were trading five years ago, mainly due to weakness in the UK, once its biggest market.