29 April 2025
If you are covering Travis Perkins’ Q1 trading update, please find a comment below from Jarek Pominkiewicz, equity analyst at Quilter Cheviot:
"Travis Perkins has delivered another underwhelming trading update for the first quarter of 2025, with like-for-like sales declining 2.1% year-on-year. This performance is driven by softer Merchant volumes (down 3%), while Toolstation has shown relative resilience with a 3.7% growth, supported by volume increases of 2.5% and pricing gains of 1.2%.
“Management has refrained from commenting on full-year 2025 guidance, which we interpret as remaining broadly flat year-on-year, suggesting adjusted earnings (EBITA) excluding property profits of approximately £141 million, in line with market consensus at £139 million.
“A fundamental question for the company remains whether its challenges are structural, with aggressive private competitors potentially eroding market share, or if recent struggles can be attributed to strategic missteps, execution issues, and end market softness. Stabilising operational performance, presenting a clear strategic direction – especially amid an ongoing CEO search – and benefiting from broader UK macroeconomic recovery are key to supporting the share price.
“Travis Perkins shares are currently trading at a FY26 forecast P/E multiple of 11.2x, about 10% below its 10-year average. We maintain a 'Hold' rating as we await signs of improvement in these critical areas."
