Travis Perkins, the builders' merchant and tools retailer, said its third-quarter performance continued in line with the first half of the year, as subdued construction markets weighed on volumes.
Group revenue fell 1.6% in the three months to September, broadly matching the trajectory set in the opening six months of 2026.
The company said it would provide further detail on strategy and operational priorities at its preliminary results in March 2027, with chief executive Gavin Slark signalling continued focus on cost control in the meantime.
Toolstation UK was the standout performer, delivering revenue growth of 3.7% in the quarter as the budget tool and hardware chain continues to expand, with further store openings planned for 2027.
The group's core Merchanting division, which supplies building materials to tradespeople, saw revenue fall 2.6%, as like-for-like volumes dropped 9%, partly offset by price and mix improvements of 6.8%.
Management said it is actively managing its transaction mix, prioritising higher-margin trade and protecting against credit risk, a strategy it says is helping to cushion the impact on profitability despite the volume headwinds.
UK construction output and volumes remain subdued, the group said, most notably in new build residential, where macroeconomic uncertainty continues to suppress activity.
The group is also lapping tougher comparatives, having undertaken deeper promotional activity in the equivalent quarter last year.
Toolstation Benelux remains a problem, with revenue falling 3.8% in the quarter and a strategic review under way to address its continuing underperformance.
Slark said the business remains focused on "what we can control", with ongoing cost discipline protecting profitability while further operational efficiencies are identified and implemented.
The group said it continues to implement measures aimed at enhancing free cash flow generation and maintaining a robust financial position.
Year to date, group revenue is broadly flat, with Toolstation UK delivering like-for-like growth of 2.8%, while Merchanting like-for-like volumes remain 5.6% lower than a year ago.
