Grafton targets double‑digit EPS growth

(Sharecast News) - Construction products distributor Grafton said on Thursday that it would set out its medium‑term strategy and financial ambitions at a capital markets event in London later today. Chief executive Eric Born said Grafton remained confident in its strategy for both organic and inorganic growth, and continued to target attractive earnings expansion, strong cash generation and consistent shareholder returns while keeping its balance sheet robust.

At the event, Grafton will outline a new financial framework and targets for 2030, including adjusted earnings per share growth of more than 10% a year between 2025 and 2030, cumulative free cash flow of over £850m across 2026 to 2030, and a return on capital employed of around 13%.

Grafton also aims to retain its investment‑grade credit rating, supported by lease‑adjusted net debt to EBITDA of 1.0x to 2.0x, and expects dividend cover to remain in the 2.0x to 3.0x range, with additional capital returns considered when appropriate.

The FTSE 250-listed group said the targets reflected its confidence in both the resilience of its model and the opportunities ahead.

As of 0935 BST, Grafton shares were down 0.35% at 834p.



Reporting by Iain Gilbert at Sharecast.com

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