IN Brief:
- Travis Perkins says manufacturers are already signalling energy and transport surcharges as Middle East conflict pushes up input costs.
- The merchant reported £4.565bn revenue and £133m adjusted operating profit for 2025, with margins in merchanting still under pressure.
- Wider housebuilding warnings suggest energy-intensive products such as bricks and plasterboard remain exposed to further inflation through 2026.
Travis Perkins has warned that building materials prices in the UK could rise again as manufacturers begin adding energy and transport surcharges to cover costs linked to higher fuel and energy markets.
The warning came alongside the group’s 2025 full-year results, which showed revenue of £4.565bn and adjusted operating profit of £133m, down 12.5% year on year. Gavin Slark, who took over as chief executive on 1 January, said trading had started the year on a subdued footing, while the business moved away from the aggressive pricing used to recover market share in the second half of last year towards a more balanced approach intended to protect margins.
The significance for sites and merchants is straightforward. Products such as bricks, plasterboard, insulation and cement-based materials are exposed when gas, power, freight and road fuel costs move together, and distribution-heavy supply chains feel the effect quickly. Once manufacturers begin issuing surcharge notices, the pressure tends to move from the factory gate into live quotations and contract discussions within weeks rather than months.
The wider market remains fragile. UK housebuilders have been contending with weak demand, financing pressure and cautious buyers, and several have separately flagged the risk that higher energy prices could feed into energy-intensive materials just as the sector looks for a steadier recovery. For contractors, the question is less whether volatility can return than how much of it will stick in 2026 pricing.
