Marshalls PLC (LSE:MSLH) shares rose 2.5% to 129p after the building products group said trading in the first four months of 2026 was in line with expectations and backed its full-year outlook despite continued market uncertainty.
The landscaping, roofing and building products supplier reported revenue of £205 million for the period to 30 April, down 1% from £207 million a year earlier.
The FTSE 250-listed company said it was responding to cost inflation linked to the Middle East conflict through targeted pricing measures while benefiting from its predominantly UK-based manufacturing footprint.
Landscaping product revenue was flat at £86 million, with the group saying it had regained market share without sacrificing margins through improved service, stronger customer relationships and a simplified product range.
The group added that the division's turnaround plan remained on track to deliver £11 million of annualised cost savings by the end of the year.
Revenue from building products was also flat at £56 million, with strength in mortars and screeds offsetting weaker demand in bricks and masonry because of subdued housebuilding activity.
Roofing product revenue fell 3% to £63 million amid competitive pressure in concrete roof tiles, though the Viridian Solar unit continued to deliver growth.Pre-IFRS 16 net debt fell to £167 million from £171 million a year earlier, with Marshalls continuing to expect further deleveraging through 2026.
House broker Peel Hunt called it a "robust" update, with trading in line with expectations, leaving its forecasts unchanged.
"The shares have faltered in the last year, declining 54% as the group's end markets have struggled and the issues with Landscape were first flagged," it said.
"However, on our unchanged forecasts, the shares are now trading on a PE of under 9x for FY26E with an EV/EBITDA of c.5.5x.
"These multiples are approximately half the long-run averages and offer great value in our view."