Grafton Group has reported improved group revenue for 2025, although its UK business division did not experience a “meaningful recovery” during the year.
In its latest trading update, Grafton Group said group revenue for 2025 reached £2.52 billion, up from £2.28 billion, representing growth of 10.4%. This was driven by the positive impact of specialist Spanish HVAC distributor Salvador Escoda, acquired at the end of October 2024, as well as seven months of trading following the acquisition of HSS Hire Ireland.
Group average daily like-for-like revenue for the year was 1.7% higher than the prior year, but was flat year on year in the two months to the end of December, reflecting continued easing of activity in the second half of 2025.
In the UK, average daily like-for-like revenue increased by 0.4% for the year but declined by 0.2% in November and December. This was largely due to ongoing weakness in the RMI market, which continued to be affected by negative consumer sentiment following the November budget.
In Northern Europe, average daily like-for-like revenue declined by 0.5% for the year and fell by 2.9% in November and December. While modest growth was recorded in the Netherlands, driven by strong project-related sales, this was more than offset by declines in Finland, reflecting unusually mild winter weather and continued economic weakness.
By contrast, the Island of Ireland business delivered average daily like-for-like revenue growth of 3.5% for the year, with growth of 0.6% recorded in November and December. Trading in the final two months reflected continued momentum at Woodie’s following another strong Christmas campaign. This was partly offset by weaker trading at Chadwicks, largely due to the timing of jobsite shutdowns over the holiday period.
In the Iberia market, Salvador Escoda’s average daily like-for-like revenue increased by 6.1% for the full year, with growth of 4.4% recorded in November and December. The business ended the year strongly, supported by robust end-of-season sales campaigns during what is typically a quieter period
Recently, Grafton Group appointed Mario Ballarín as CEO for Iberia.
Looking ahead, the company will publish its full-year 2025 results on 5 March 2026. Full-year adjusted operating profit is expected to be in line with expectations, despite weak market conditions outside the Island of Ireland and Iberia and continued cost pressures across all markets.
The group added that the outlook for Grafton remains “favourable”, supported by structural growth drivers, strong market positions across its regions, recovery potential in Great Britain and Northern Europe, a robust balance sheet and a healthy acquisition pipeline.
“Building on our existing market positions, we see exciting opportunities to further strengthen our business and to deliver organic and inorganic growth,” said Eric Born, Chief Executive Officer of Grafton Group.
