Marshalls Shares Plummet as Sales Fall and Landscaping Market Remains Weak

Marshalls, a building products group, has reported a 1% drop in sales to £135m for the six months to June 30. The company has slashed its profit forecast to between £42m and £46m, below market expectations. Shares fell as much as 23% and closed at 209.5p. Marshalls warned that the landscaping market is unlikely to recover throughout the year due to price pressures.

Marshalls PLC (LSE:MSLH), a building products group, reported a 1% drop in sales to £135m for the six months to June 30. The company has slashed its profit forecast to between £42m and £46m, below market expectations. Shares fell as much as 23% and closed at 209.5p. Marshalls warned that the landscaping market is unlikely to recover throughout the year due to price pressures.

The company's revenue rose 4% to £319m in the first half of 2025, supported by gains in its building products and roofing divisions. However, activity levels in its core landscaping markets softened from late May, and the company does not expect any improvement for the rest of 2025. Landscaping Products revenue fell 1% to £135m, as overcapacity and price pressure continued to squeeze margins.

Marshalls is accelerating cost-saving measures, including partial site closures and further rationalisation, aiming for £9m in annualised savings. Management remains focused on long-term recovery, but expects current headwinds to persist into next year.

In the wake of the update, Peel Hunt cut its full-year profit target to £42m from £56m, along with its price target, which falls to 290p. Panmure Liberum continues to rate the shares 'buy' up to 334p.

References:
[1] https://www.proactiveinvestors.com/companies/news/1075457/marshalls-tumbles-22-as-landscaping-market-softens-1075457.html
[2] https://www.marketscreener.com/news/marshalls-lowers-2025-profit-guidance-amid-end-market-overcapacity-ce7c5fdad08ef727