Grafton Group delivers profit growth as four-year cash generation exceeds £700m

Building materials supplier Grafton Group has generated more than £700m (€817m) in free cash flow over four years whilst reporting adjusted operating profit rising 7.1% to £190.2m (€222m) in 2025, beating analyst expectations despite sluggish construction markets across Great Britain and Northern Europe.

Construction Wave reported that the group's revenue grew 10.4% to £2.51bn (€2.93bn) from £2.28bn (€2.66bn) in 2024, with adjusted operating profit exceeding the top end of analyst expectations of £183m (€213m). The company delivered strong performance in Ireland and achieved profit growth in Great Britain despite a slowing repair, maintenance and improvement market and weak housebuilding recovery.

Results were bolstered by first full-year contributions from recent acquisitions, including HSS Ireland which added £14.5m (€16.9m) in revenue, and HVAC distributor Salvador Escoda contributing £180.1m (€210m). Grafton closed the year with £274m (€320m) in net cash, providing significant capacity for further acquisitions and investment.

Chief Executive Eric Born said delivering profitability ahead of analysts' consensus, despite inflationary pressures and challenging conditions in some markets, reflects successful execution of strategy scaling positions across multiple geographies combined with strong operational focus. He noted the group sustained focus on margin management whilst using its robust balance sheet to invest in strengthening market positions and customer proposition.

Over the past four years, free cash flow has funded investments, acquisitions, dividends and share buybacks. In 2025, £129m (€151m) was returned to shareholders via dividends, with a new £25m (€29m) share buyback announced.

Born said Grafton's resilience in 2025 points to substantial profitability upside as demand recovers in weaker markets and as the company scales presence organically and through complementary acquisitions.

Access complete details on the financial results and acquisition strategy details for the building materials group.