Why This Matters to Distributors: Travis Perkins is seeing early improvement in its core building materials business despite weak U.K. construction demand. Toolstation continues to grow in the U.K., while the company is considering a sale of its struggling Benelux operations.
Travis Perkins plc reported lower first half sales as weak construction activity continued to weigh on demand for building materials, although cost cuts and changes in its core merchanting business helped lift profits.
Sales for the six months ended June 30 fell 1.8% to £2.26 billion ($3.05 billion) from £2.30 billion ($3.11 billion) a year earlier. Profit after tax rose 14.8% to £30.3 million ($41 million) from £26.4 million ($35.7 million).
The Northampton-based company is one of the U.K.’s largest distributors of building materials to contractors and other trade customers. Its businesses include the Travis Perkins builders’ merchant, Toolstation and specialty distributors Keyline, BSS, CCF and TF Solutions.
Travis Perkins operates in about 1,500 locations, supplying products including timber, bricks, drainage products, tools, heating and ventilation equipment, insulation, and civil infrastructure products.
The company’s Merchanting division, its largest business, reported first-half sales of £1.83 billion ($2.48 billion), down 2.6% from about £1.88 billion ($2.54 billion) a year earlier.
Sales at existing Merchanting locations declined 1.2%. Prices increased, but that was not enough to offset a 3.9% drop in the amount of products sold as construction activity remained subdued.
The results underscore the difficult conditions facing building materials distributors in the U.K., where weak residential construction and cautious spending by contractors have pressured demand.
Travis Perkins said changes made in its General Merchant business are beginning to produce results. The company has focused on passing supplier price increases through to customers, negotiating better purchasing terms and being more selective about lower-profit business and customers that pose greater credit risks.
The company also continued to reshape its branch network. Travis Perkins closed 11 smaller General Merchant branches and opened three during the first half, reducing its Merchanting network to 719 locations from 727 at the end of 2025.
Results varied across its specialty distribution businesses. BSS and Keyline performed in line with their markets, while CCF was hurt by continued weakness in new home construction. TF Solutions, which distributes heating, ventilation, and air-conditioning products, posted strong sales growth and returned to profitability, helped by increased air-conditioning demand during warmer weather.
Toolstation provided a brighter spot.
Total Toolstation sales increased by 1.7% to £425 million ($574.7 million) from £418 million ($565.2 million).
In the U.K., Toolstation sales rose 2.6%. Profit from the U.K. business increased 4.8% to £22 million ($29.7 million) from £21 million ($28.4 million). The company said Toolstation continued to gain market share and its Toolstation Club customer program reached 900,000 members after adding 200,000 during the first half.
Travis Perkins expects to open about 10 Toolstation stores in the U.K. this year and has set a longer-term target of 650 locations.
Results were considerably weaker in Benelux. Toolstation sales there fell 6.1%, while their loss increased to £7 million ($9.5 million) from £6 million ($8.1 million).
Travis Perkins said it is in discussions with several interested parties about a possible sale of the Benelux business following a strategic review announced in March.
CEO Gavin Slark, who took the top job in January, said the company is beginning to see results from changes in its largest businesses.
“We have made encouraging early progress in rebuilding profitability in the General Merchant and Toolstation UK continues to perform in line with our expectations,” Slark said.
Travis Perkins does not expect a significant rebound in construction activity during the remainder of the year. The company said U.K. construction markets remained depressed during the first half and expects conditions in the second half to be broadly similar.
There were signs that the decline may be easing. Merchanting sales fell 1.1% in the second quarter after dropping 4.2% in the first quarter. Sales at existing Merchanting locations were flat in the second quarter after declining 2.3% during the first three months of the year.
For distributors, the results show a company trying to improve its core operations without waiting for the construction market to recover. Travis Perkins is closing underperforming branches, tightening its approach to pricing and customers, investing in Toolstation’s U.K. growth, and considering an exit from a European business that continues to lose money.
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