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SIG lifts profit and cuts costs as construction slump delays recovery

Story Highlights
  • SIG held 2025 like-for-like sales flat at £2.6bn while lifting underlying operating profit to about £32m through substantial cost and efficiency gains.
  • Despite weak European construction markets, SIG improved cash flow, maintained liquidity and launched its Vision 2030 plan to boost margins via further efficiencies and portfolio optimisation.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
SIG lifts profit and cuts costs as construction slump delays recovery

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An update from SIG plc ( (GB:SHI) ) is now available.

SIG plc reported flat like-for-like sales at £2.6bn for 2025 but delivered a stronger operational performance, with underlying operating profit expected to rise to about £32m, supported by £39m of underlying operating expense reductions and improved cost efficiency. Despite weak construction demand and pricing pressure in key markets such as the UK, Germany and Ireland, the company continued to outperform its end markets, gained share in most geographies, and improved free cash flow with a reduced outflow of around £12m and year-end liquidity of £171m, though net debt edged up to approximately £518m and leverage remained at 4.7x. Management has set out a “Vision 2030” framework targeting a through‑the‑cycle operating margin of 3–5%, prioritising further cost and procurement gains, operational leverage as markets recover, and portfolio simplification following the closure of smaller loss-making unit Mayplas, positioning SIG as a more focused growth platform in European building materials distribution.

The most recent analyst rating on (GB:SHI) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on SIG plc stock, see the GB:SHI Stock Forecast page.

Spark’s Take on GB:SHI Stock

According to Spark, TipRanks’ AI Analyst, GB:SHI is a Neutral.

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and high leverage. Technical analysis shows mixed signals with short-term bullish momentum but longer-term bearish trends. Valuation concerns arise from a negative P/E ratio and lack of dividend yield. However, positive corporate events, such as the CEO’s share purchase and strategic leadership changes, provide a boost to the score.

To see Spark’s full report on GB:SHI stock, click here.

More about SIG plc

SIG plc is a leading pan-European distributor of specialist insulation and building products, serving construction markets across the UK and continental Europe. The group focuses on interiors, roofing and related building materials, with a portfolio structured around national and regional businesses that target both new-build and refurbishment demand in markets currently at a low point in the construction cycle.

Average Trading Volume: 1,170,097

Technical Sentiment Signal: Sell

Current Market Cap: £114.3M

For detailed information about SHI stock, go to TipRanks’ Stock Analysis page.

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