Analyst Meeting Highlights

Research evidence excerpt

Analyst Meeting Highlights

Update

August 4, 2026 10:54 AM GMT

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

Equity Analyst

Analyst Meeting Highlights Annelies.Vermeulen@morganstanley.comZachariah Al-Qaryooti +44 20 7425-4367

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

Key Takeaways

Travis Perkins PLC (TPK.L, TPK LN)

Shares are up 16% today on resilient trading, better gross margins and good cash Business Services | United Kingdom

generation, despite a still very difficult market backdrop. Stock Rating Equal-weight

Industry View Attractive

Investor feedback is positive but many are surprised by the magnitude of the Price target 685p

move up; we estimate some of this is positioning. Shr price, close (Aug 3, 2026) 573p

52-Week Range 724-493p

Management remained fairly cautious on underlying demand, but encouraged by Mkt cap, curr (mn) £1,234

Net debt (12/26e) (mn)* £737

the group's ability to improve margins, take share & strengthen the balance EV, curr (mn)* £1,855

sheet. * = GAAP or approximated based on GAAP

Q&A focused on pricing, gross margin, procurement, working-capital and capital

allocation following the balance-sheet improvement. Key highlights below.

Pricing outlook. Manufacturer pricing has stabilised after significant increases

earlier in the year, including 15%-20% on some oil-based plastic products, although

further inflation is expected in H2 and potentially H1 2027 as energy hedges roll off.

Management would not rule out renewed acceleration in pricing given geopolitical

volatility. TPK will maintain disciplined pass-through, with faster implementation in

General Merchanting than in longer-duration project work at Keyline and CCF.

Execution has improved through more consistent pricing, less unnecessary