1H26 broadly in line, GM better on pricing. FY26 unchanged

Research evidence excerpt

1H26 broadly in line, GM better on pricing. FY26 unchanged

Update

August 4, 2026 06:43 AM GMT

Morgan Stanley & Co. International plc+MTravis Perkins PLC | Europe Annelies Vermeulen

Equity Analyst

1H26 broadly in line, GM better Annelies.Vermeulen@morganstanley.comZachariah Al-Qaryooti +44 20 7425-4367

Zach.Al-Qaryooti@morganstanley.com +44 20 7425-2400

on pricing. FY26 unchanged

Travis Perkins PLC (TPK.L, TPK LN)

Business Services | United Kingdom

AlphaSignals Earnings Reaction

Stock Rating Equal-weight

Unchanged Modest upside Largely unchanged Industry View Attractive

Impact to our thesis Financial results versus consensus Direction of next 12-month Price target 685p

consensus EPS Shr price, close (Aug 3, 2026) 573p

52-Week Range 724-493p

Source: Company data, Morgan Stanley Research Mkt cap, curr (mn) £1,234

Net debt (12/26e) (mn)* £737

EV, curr (mn)* £1,855

Key Takeaways

* = GAAP or approximated based on GAAP

1H26 operating profit of £67m, or £62m ex property profits, slightly ahead of

consensus driven by Merchanting and flat yoy.

Sequential improvement in Merchanting LFL in 2Q, driven by higher pricing;

volumes remain subdued. Toolstation UK solid, TS Benelux challenging.

FY26 outlook unchanged: TPK expects a similar 2H to 1H and no changes to FY26

consensus adj operating profit of ~£125m inc property profits.

Overall, good progress on costs, GM and cash in a still difficult end market.

Merchanting turnaround continues, with encouraging early margin progress.

Conference call at 8.30am UKt; registration link below.

1H26 results slightly ahead on margin, growth remains subdued: Revenues

declined by -0.7% on a LFL basis for 1H, though improved sequentially (1Q: -1.7%, 2Q:

+0.1%), while adj operating profit was up 6.3% yoy to £67m or £62m ex property