Solar Growth Cushions Subdued Marley Roofing Profits

Viridian Solar installed on residential property roofs

Image: Viridian Solar

Marley Roofing, which makes up the Roofing Products division of Marshalls plc, saw a 0.6% decrease in revenue in the first half of 2026, partially offset by further increase from Viridian Solar.

In a trading update to 30 June 2026, Marshalls reported a 13.2% rise in first-half adjusted profit before tax, while revenue fell 0.5% to £317.8 million (H1 2025: £319.5 million).

Marley Roofing

Roofing Products revenue dipped to £97.1 million (H1 2025: £97.7 million), driven by competitive conditions in concrete roof tiles. However, this was partially offset by growth in clay tile volumes and improved attachment rates of roofing accessories and system components.

Operating profit also decreased by £1.7 million to £23.1 million (H1 2025: £24.8 million), reflecting continued growth in Viridian Solar offset by lower profitability in Marley.

Growth in Viridian Solar was driven by higher volumes and continued commercial discipline, whereas the lower profitability in Marley reflected softer volumes in a subdued marketplace alongside weaker manufacturing efficiency.

Overall, Marshalls says the division’s results were in line with expectations and made a ‘significant’ contribution to Group profitability despite the modest contraction in operating profit.

Other Divisions

Marshalls’ Landscaping Products revenue remained steady at £135.1 million, in line with H1 2025, while operating profit increased by £5.2 million to £5.5 million (H1 2025: £0.3 million), driven by a combination of higher gross margins, lower manufacturing costs and reduced overheads.

Execution of the performance improvement plan continues to deliver progress and the business remains on track to deliver the previously announced £11 million of annualised cost savings in full by the end of 2026.

Meanwhile, Marshalls’ Building Products division delivered a more mixed performance.

Building Products first-half revenue marginally reduced by 0.9% to £85.6 million (H1 2025: £86.4 million), with weakness in new build housing weighing on performance within Water Management and Bricks & Masonry, partially offset by growth in Mortars & Screeds.

Building Products operating profit decreased by 10.1% to £6.2 million, driven by lower business volumes, extended site maintenance site shutdowns which adversely affected Group operational efficiency, and additional costs arising from the conflict in the Middle East.

Outlook

Marshalls says it does not expect any material market recovery in the second half of 2026, but expectations for the full year remain unchanged.

Simon Bourne, Marshalls plc CEO, commented: “We have delivered a resilient first half performance, despite subdued end markets, with adjusted profit growth delivered in line with expectations. This reflects our reinvigorated focus on sharper execution, continued financial discipline and the benefits of actions taken through FY25 to create a leaner and more focused operating platform.

“Landscaping Products demonstrates the clearest evidence of this progress, with our performance improvement plan delivering improved profitability and the business remaining on track to deliver the previously announced £11 million of annualised cost savings by the end of FY26.

“Roofing Products continued to provide a strong contribution, driven by Viridian Solar and disciplined trading in Marley Roofing.

“Building Products was mixed, with Mortars & Screeds resilient and Water Management positioned for infrastructure-led growth, but weak new build housing demand weighed on both Bricks & Masonry and Water Management performance in the first half.

“We remain focused on what we can control: service, cost, cash, working capital and disciplined capital allocation. We are not factoring a material market recovery into our second half assumptions, and the operational progress delivered to date, together with the strength of our diversified portfolio, supports the Board’s confidence in the Group’s outlook for the full year and our medium-term growth potential.”