Travis Perkins, a building materials provider, reported a decline in sales for the third quarter of 2026, citing ongoing economic uncertainty. The company, which operates 1,500 locations across the United Kingdom, stated that like-for-like revenue decreased by 1.3% during the three months ending September 30, 2026.
The revenue drop occurred as the construction sector faced high interest rates and cost inflation, which the company said impacted new developments. The firm noted that the industry remains subdued, particularly within the new-build residential sector, due to persisting macroeconomic conditions.
To protect profits against declining volumes, the Northampton-based company said it is prioritizing more profitable trade and working to reduce credit risk. Following the update on Thursday, October 15, 2026, the company’s shares on the London Stock Exchange decreased by as much as 3% before stabilizing at a 1.5% loss.
Performance varied across the company's different brands. Toolstation UK saw a 3.6% increase in like-for-like revenue during the quarter, while Toolstation Benelux experienced a 4.7% decline. Management stated it is exploring options to address the performance of the Benelux brand. Chief Executive Gavin Slark said the firm is focused on cost discipline and identifying operational efficiencies.
The concrete day-to-day change for the company involves a shift in "trading approach," where the merchant is prioritizing higher-margin business and tightening credit risk. This could mean that smaller builders or those with lower credit ratings may find it more difficult to secure materials on credit terms. While Toolstation UK plans to open new stores in 2027, the company is concurrently seeking "operational efficiencies," a term that often refers to cost-cutting measures that can impact staffing or service levels.
The performance of Travis Perkins serves as a benchmark for the health of the UK housing and infrastructure markets. The specific weakness in the new-build residential sector indicates a slowdown in the creation of new housing stock, which can have knock-on effects for the wider economy and government housing targets. The company has announced it will provide further details on its strategy and operational priorities during its preliminary results presentation scheduled for March 2027.