Marshalls, a leading manufacturer of building materials, has reported encouraging product sales growth across its divisions for the year ended 31 December 2025, with group revenue rising 2% year-on-year.
However, like many of the housebuilders that use Marshalls’ building products, the company signalled a challenging external environment and outlook, which sapped demand for its shares on Monday.
“After a year in which Marshalls’ share price has shed more than a third of its value, the landscaping and building products group is still trying to regain its footing, and the latest trading update offers a flicker of defiance,” said Mark Crouch, market analyst for eToro.
“Full-year revenue rose 2%, while adjusted profit before tax came in line with expectations, supported by cost-cutting measures pushed through during 2025.
“Performance across the group, however, remains uneven. The painful memories of June’s gut-wrenching 96% collapse in landscaping operating profit are still fresh. Unsurprisingly, Roofing and Building products are providing the group’s main source of stability, each delivering modest 4% growth, while Landscaping continues to struggle”
The company’s Building Products division led the performance with revenue rising 4% to £172 million, driven by strong growth in Water Management products, though this was partially offset by softer demand for bricks in the second half.
Roofing Products also delivered four per cent revenue growth to £194 million, with the division’s Viridian Solar business showing particularly robust expansion of approximately 32 per cent. The solar products unit delivered sequential half-on-half revenue growth throughout 2025, though year-on-year growth moderated to around 18 per cent in the second half as energy efficiency regulations matured.
Marshalls’ Landscaping Products division saw volume growth of 4% despite subdued market conditions, though overall division revenue declined 1% to £266 million due to price adjustments and product mix effects.
Despite an uncertain outlook for 2026, Marshalls reported full-year adjusted profit before tax in line with market expectations. The company expects to deliver improved financial performance in 2026 as cost reduction initiatives take full effect.
“Marshalls delivered a resilient performance, evidenced by a return to revenue growth despite the challenging market backdrop, and delivering profits in-line with the market’s expectations,” said
“We have made good progress with our ‘Transform & Grow’ strategy and with an increased focus on execution, I am confident that the Group is well positioned to benefit from a market recovery and structural growth drivers over the medium term.”