DAVY VIEW

Grafton’s trading update has indicated that adjusted operating profit for 2024 will be in line with expectations. Accordingly, we do not expect to make changes to our estimates. Last year presented its challenges as many of Grafton’s end-markets were persistently weak, although a clear highlight was the platform acquisition of Salvador Escoda. As we noted previously, the deal augmented the group’s existing portfolio and also provides a platform for further expansion in a fragmented market with attractive growth potential. Like its peers, the Grafton equity has had a poor start to the year (down 12%); at a 2025 P/E of just 12x based on our estimates, the stock looks oversold.