Third quarter trading update
Q3 revenue declined 1.6% as UK construction volumes remain subdued; Toolstation UK growing but Benelux challenging.
- Group total revenue growth Q3 (1.6)%
- Merchanting like-for-like revenue Q3 (2.2)%
- Toolstation UK like-for-like revenue Q3 3.6%
- Toolstation Benelux like-for-like revenue Q3 (4.7)%
- Group like-for-like volume Q3 (7.2)%
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The Group’s overall performance in the third quarter continued in line with the first half year, with revenue in the quarter declining by 1.6%. UK construction output and volumes remain subdued, most notably in new build residential, as macroeconomic uncertainty persists. The Merchanting businesses continue to actively manage their transaction mix, prioritising higher margin trade and protecting the Group against credit risk in the current environment. This approach is helping to mitigate the impact to profitability, despite the volume headwinds. In addition, the Group is annualising the deeper promotional activity undertaken in Q3 last year. Against the inflationary backdrop of this year, the Merchanting businesses are also focused on achieving an effective pass through of input inflation.
Toolstation UK delivered solid revenue growth in the quarter as it continues to expand in line with expectations and looks ahead to further store openings in 2027. Toolstation Benelux performance remains challenging and the Group continues to explore opportunities arising from its current strategic review to address this.
The Group continues to implement measures that are enhancing its operational performance, free cash flow generation and robust financial position.
Gavin Slark, Chief Executive Officer, commented:
“In challenging market conditions we remain focused on what we can control. Our ongoing cost discipline and trading approach are protecting profitability whilst we continue to identify and implement further operational efficiencies. We look forward to providing more detail on our strategy and operational priorities at our Preliminary results in March 2027.”
| Q3 2026 | Merchanting | Toolstation UK | Toolstation Benelux | Group |
|---|---|---|---|---|
| Price and mix | 6.8% | 1.8% | (1.7)% | 5.9% |
| Like-for-like volume | (9.0)% | 1.8% | (3.0)% | (7.2)% |
| Like-for-like revenue (decline) / growth | (2.2)% | 3.6% | (4.7)% | (1.3)% |
| Network changes | (0.4)% | 0.1% | 0.9% | (0.3)% |
| Trading days impact | – | – | – | – |
| Total revenue (decline) / growth | (2.6)% | 3.7% | (3.8)% | (1.6)% |
| YTD 2026 | Merchanting | Toolstation UK | Toolstation Benelux | Group |
| Price and mix | 4.1% | 1.8% | 0.2% | 3.6% |
| Like-for-like volume | (5.6)% | 1.0% | (6.1)% | (4.5)% |
| Like-for-like revenue (decline) / growth | (1.5)% | 2.8% | (5.9)% | (0.9)% |
| Network changes | (1.1)% | 0.2% | 0.6% | (0.9)% |
| Trading days impact | – | – | – | – |
| Total revenue (decline) / growth | (2.6)% | 3.0% | (5.3)% | (1.8)% |
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