Marshalls Shares Tumble as Landscaping Profits Erode Amid Housing Slowdown

Marshalls, the FTSE 250 construction materials specialist, has sounded alarm bells over the health of the home improvement market as spending slumps and the company faces tumbling profits. The group, well-known for its pavements, paviors, and roofing products, reported a near collapse of its flagship landscaping division’s profitability in the first half of 2025.

Half-year results revealed operating profits for landscaping products plummeted from £8.3 million in the first six months of 2024 to a mere £300,000 this year. Turnover of £135.4 million was only marginally lower, indicating that weak demand had combined with soaring input costs to squeeze margins sharply. Customers are trading down to cheaper, lower margin offerings, putting further strain on Marshalls’ revenues from its largest business unit.

The board of Marshalls cautions that there is no improvement in market activity on the horizon, reflecting persistent uncertainty across the broader macroeconomic landscape. Homeowners are holding back on renovation projects, with the domestic landscaping market suffering particularly acutely. Overcapacity issues and structural inefficiencies—such as factories not being located near key growth areas in the southeast and northwest of England—have compounded the challenge.

Chief executive Matt Pullen, who joined the company 18 months ago, highlighted that consumer caution is proving a stiff headwind for the business. When Marshalls issued a profit warning at the end of July, shares sank by more than 20 percent in a day, and have continued to drift downwards as investors react to the grim guidance. Shares are now trading at 204.5p, valuing the group at £517 million—down over 40 percent from their recent high last autumn.

Group-wide, interim pre-tax profits were down 17 percent at £22 million despite 4 percent higher revenues at £319.5 million. While building products and roofing divisions offered some respite, it was insufficient to offset the sharp downturn in landscaping. The company’s 2022 acquisition of Marley, a roofing tiles producer, has proved a double-edged sword—criticised for its price tag, yet bringing with it Viridian Solar, which has flourished thanks to new regulations requiring solar panels in new homes. Roofing now accounts for three quarters of Marshalls’ operating profits.

All eyes are now on the company’s efforts to address manufacturing inefficiencies and regain its footing as home improvement spending eventually revives. For the time being, Marshalls remains a bellwether for caution in the UK’s property and construction sectors as economic headwinds persist.