Grafton Group, the owner of Woodie’s DIY, Chadwicks, HSS Hire Ireland and Cygnum, has reported higher revenue and profits for the first half of 2026, helped by strong trading in Ireland and Iberia.
The building materials and distribution group said revenue for the six months to the end of June rose 6.7% to £1.336 billion, compared with £1.252 billion during the same period last year.
Adjusted profit before tax increased 7.1% to £93 million, while adjusted operating profit rose 8.2% to £98.5 million. The company attributed the performance to strong underlying trading and acquisitions in Iberia and across the island of Ireland.
Grafton declared an interim dividend of 11 pence per share, up from 10.75 pence a year earlier.
Chief executive Eric Born said the company was pleased to have increased revenue, adjusted operating profit and margins despite a relatively slow start to the year. Grafton reaffirmed its full-year adjusted operating profit target of £190 million to £200 million, while warning that the important autumn trading period is still ahead.
Born said the outlook for the second half was broadly similar to the first, with strong performance expected in Iberia and Ireland, mixed conditions in Northern Europe and continued weakness in Great Britain.
The company’s Island of Ireland business was a major contributor, with revenue rising 10.3% to £579.4 million. Adjusted operating profit before property profit increased 10% to £60.6 million.
Average daily like-for-like revenue in the region grew 3.4%, supported by strong trading at Chadwicks and modest growth at Woodie’s. Woodie’s opened a new store in Ennis, Co Clare, in June, its first new store in 17 years. Chadwicks also opened a specialist hub in Ravenhill, Belfast, in July.
Grafton said construction activity strengthened during the first half after a weak start caused by poor weather. Housing completions rose 10% to almost 17,000 units, while construction employment also increased.
Great Britain remained the group’s weakest market. Revenue fell 5.1% to £367.2 million, while adjusted operating profit dropped 29.3% to £17.5 million. Grafton said affordability pressures, higher financing costs and subdued home improvement demand continued to affect the UK market.
Northern Europe recorded a 3.6% rise in revenue to £244.2 million, with adjusted operating profit increasing 3.4% to £16.3 million.
Iberia delivered the strongest growth, with revenue surging 39.3% to £145.1 million and adjusted operating profit jumping 116% to £14.1 million. The division benefited from the addition of Mercaluz and strong demand for air conditioning, refrigeration and ventilation products during record summer temperatures in Spain.
