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Grafton (GB:GFTU)
LSE:GFTU
Earnings Data
Report Date
Aug 27, 2026TBA (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
―Last Year’s EPS
0.36Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a generally positive tone: the group returned to revenue and profit growth, delivered strong free cash flow (88% conversion) and improved return on capital (ROCE 10.9% above WACC), while successfully integrating acquisitions (notably Salvador Escoda) and maintaining disciplined capital returns (dividend increase and new GBP 25m buyback). Material headwinds remain — notably a significant earnings decline in Northern Europe (Finland), subdued volumes in Great Britain, ongoing OpEx inflation and higher finance costs — but management emphasised margin management, tight cost control, balance-sheet strength and a clear capital allocation framework to navigate the cycle. On balance, the positive financial momentum, cash generation and strategic progress outweigh the regional operational challenges.Company Guidance
Revenue and Return to Profit Growth
Revenue increased 10.4% to GBP 2.52bn. Adjusted operating profit including property profit rose 7.1% to GBP 190.2m; adjusted operating profit before property profit was GBP 184.3m, up 6.2%. Adjusted operating margin (pre-property) was 7.3% (30 bps below prior year). Adjusted EPS was 75.4p, up 5.1%.
Strong Cash Generation and Conversion
Free cash flow was GBP 168m in 2025, representing an 88% conversion of adjusted operating profit. The group has generated over GBP 700m of free cash flow in the last four years. Lease-adjusted net debt/EBITDA was just under 0.4x at year end (net debt GBP 123m).
Return on Capital and Shareholder Returns
Adjusted return on capital employed increased 60 bps to 10.9%, comfortably exceeding estimated WACC by ~2 percentage points. Returned net GBP 128m to shareholders (GBP 72.6m dividends) and announced a new GBP 25m share buyback; share count reduced by >20% since 2022. Full year dividend proposed up 2% to 37.75p with dividend cover at 2x and intention to move within a 2–3x range.
Successful Acquisition and Iberia Integration
Salvador Escoda (acquired Oct 30, 2024) reported revenue GBP 212.9m and adjusted operating profit GBP 13.6m (margin 6.4%) in its first full year in the group; pro forma average daily like-for-like revenue +6.1%. Integration progressed in line with plan; management strengthened and pipeline for Iberia expansion noted. HSS Hire Ireland contributed ~GBP 1.4m profit from seven months.
Gross Margin Improvements and Margin Management
Group gross margin improved by 50 bps. Great Britain achieved a notable 120 bps improvement in gross margin despite subdued volumes. Northern Europe gross margin improved by 90 bps. Tight overhead control in GB kept like-for-like overhead growth to 1.8%.
Island of Ireland Outperformance
Island of Ireland revenue was GBP 1.07bn, up 4.3% on a constant currency basis; average daily like-for-like sales +3.5%. Adjusted operating profit was GBP 111m, up 1.8% (constant currency) with an operating margin of 10.4%.
Operational Discipline and Working Capital Management
Net working capital reduced by GBP 12m despite higher sales. Net investment in replacement and development CapEx was GBP 41m. Net M&A spend was modest at GBP 14.3m (HSS Hire acquisition partially offset by MFP divestment proceeds).
Strategic Clarity and Development Initiatives
New four-geography reporting structure implemented to align with strategy. Management highlighted a clear capital allocation framework (fund organic growth, maintain dividend policy, pursue inorganic growth selectively, return surplus capital) and announced a Capital Markets Event to detail medium-term growth ambitions.
GB:GFTU Earnings History
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.
Beat
Missed
GB:GFTU Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 05, 2026 | 923.90 p | 938.20 p | +1.55% |
Sep 04, 2025 | 851.76 p | 854.53 p | +0.32% |
Mar 06, 2025 | 788.63 p | 827.09 p | +4.88% |
Aug 29, 2024 | 997.76 p | 1005.36 p | +0.76% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Grafton (GB:GFTU) report earnings?
Grafton (GB:GFTU) is schdueled to report earning on Aug 27, 2026, TBA (Confirmed).
What is Grafton (GB:GFTU) earnings time?
Grafton (GB:GFTU) earnings time is at Aug 27, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Grafton stock?
The P/E ratio of Grafton is N/A.
What is GB:GFTU EPS forecast?
Currently, no data Available