Grafton FY profit beats expectations despite tough markets, shares jump

(Sharecast News) - Building supplies group Grafton reported better-than-expected annual earnings despite a challenging UK market, sending shares in the company higher on Thursday.

Full-year adjusted operating profit rose 7.1% to �190.2m and compared with a company-compiled consensus of analysts' forecasts of �181.8m. The group also announced a �25m share buyback.

"Delivering profitability ahead of analysts' consensus, despite inflationary pressures and challenging conditions in some of our markets, reflects the successful execution of our strategy of scaling positions across multiple geographies combined with a strong operational focus," said chief executive Eric Born.

Looking ahead, Grafton said it expected positive trading conditions to continue in the Republic of Ireland and Spain, but other geographical markets were anticipated to remain challenging in 2026.

"Whilst the Island of Ireland and Iberia segments performed strongly, meaningful recovery in Great Britain and Northern Europe did not materialise as anticipated in 2025 and the exit rate of activity from 2025 was weaker than expected; consequently, the timing of any improvement in these two segments in the year ahead remains uncertain," Grafton said.

Average daily like-for-like revenue in the first two months of the year was up 0.2% on 2025, despite prolonged wet weather that affected business in Ireland and Britain.

Reporting by Frank Prenesti for Sharecast.com