Woodies and Chadwicks owner Grafton Group said revenue rose 10 per cent last year despite challenging conditions in some markets.
The performance of its Irish business, which also included MacBlair and MFP, which it divested in May 2025, remained strong, Grafton said.
The company said its supply chains were resilient, and foresaw limited impact from the current unrest in the Middle East, which has sent fuel costs spiralling in recent days.
Chief executive Eric Born said it was too early to tell if there would be a significant impact on the group’s ability to provide products, but sustained increases in energy and shipping costs in the future could impact prices for consumers.
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Group revenues for the year were £2.52 billion (€2.9 billion), and full-year adjusted operating profit was ahead of expectations, rising 7.1 per cent to £190.2 million. The profit boost was attributed to the first full-year contribution of Salvador Escoda in Spain.
Adjusted earnings per share were up 5.1 per cent to 75.4p.
How the conflict in the Middle East is already affecting Irish consumers
Gross margin, meanwhile, improved by 50bps, with the group’s overall operating margin remaining about 7 per cent despite operating cost pressures.
Its Woodie’s retail business continued to grow, with another year of strong growth supported by sales of plants and garden products. Chadwicks, meanwhile, also delivered a positive sales performance, particularly in the hardware, heating and plumbing categories.
“We have a very strong business with a strong operating performance, and we expect the business to continue to perform strongly,” Born said.
The group said profits grew in Great Britain despite a weakening market for home repairs and improvements, and a slow recovery in house building. The Salvador Escoda business in Iberia has been successfully integrated, Grafton said, recording profit growth last year.
Grafton’s Northern Europe business remained challenging, it said, although macro indicators were improving.
The group also announced a £25 million share buyback programme, following £129.2 million it returned to shareholders in share buybacks and dividend payments in 2025
Full year dividend rose 2 per cent to 37.75p.
“Delivering profitability ahead of analysts’ consensus, despite inflationary pressures and challenging conditions in some of our markets, reflects the successful execution of our strategy of scaling positions across multiple geographies combined with a strong operational focus,” said Born. “Grafton’s resilience in 2025 points to substantial profitability upside as demand recovers in weaker markets and as we scale our presence organically and through complementary acquisitions.”
Looking ahead, Grafton said it expected positive trading conditions to continue in the Republic of Ireland and Spain, but others remained uncertain.
Average daily like-for-like revenue in the first two months of the year was marginally ahead of 2025, despite prolonged wet weather that affected business in Ireland and Britain.
The gain was more pronounced in Ireland, with softer comparators following the impact of Storm Éowyn in 2025. Grafton said it expected the construction market in the Republic to continue to deliver solid growth, with support from increased public sector capital investment and a favourable economic backdrop. However, consumer sentiment had turned more cautious.
Strong trading in Finland was supported by the return of winter weather conditions, while the timing of public holidays in the Netherlands weighed on trading.
“We expect continued growth in the Island of Ireland and Iberia however elsewhere market conditions remain mixed,” Born said. “Though market improvement in Great Britain and Northern Europe is expected to be gradual, we remain upbeat on outlook over the medium term based on structural demand tail winds, positive operating leverage and the scalability and efficiency of our businesses as markets normalise.”
