West Midlands-based Tarmac sees profits fall despite near £2 billion turnover

Profits have fallen at Midlands-based Tarmac despite the company generating a turnover of nearly £2 billion, according to its latest accounts.

The nationwide building material and construction solutions firm, which has a 150-year heritage, saw profits before tax plunge from £51.8 million in 2024 to £7.6 million in 2025, Tarmac Trading Limited’s annual report said.

It said this was largely due to a loss on disposal of certain contracting businesses and a related investment impairment, both arising in the current year.

The company, which has its registered office in Solihull, generated turnover of £1.96bn in 2025 versus £1.91bn in 2024, the report said, with operating profits down to £36.4m in 2025 from £42.2m in 2024 and EBITDA rising from £100m to £103.6m, according to the report for the year ending December 31 2025 which was published on Companies House on September 10.

A review of the business said: “Overall trading in the year showed growth in turnover compared to the prior year, with results showing resiliency despite persistent market sluggishness.

“The construction sector continued to face subdued demand, delays in public infrastructure projects and softness in private residential activity.”

The report said the company has continued to focus on targeted price recovery and cost management, with its underlying performance benefitting from Tarmac’s optimisation long-term programme, which has delivered benefits across commercial, operations and logistics.

Tarmac, which employs around 2,240 people and contributes to some of the UK’s biggest construction projects, has sites across the West Midlands including the head office for its building products at i10, Wolverhampton, and its National Technical Centre at Featherstone, Wolverhampton. It also operates a major site in Shropshire - the Bayston Hill Quarry and asphalt plant.

Tarmac Trading is a wholly owned direct subsidiary of Tarmac Holdings Limited, which is part of the CRH Group - the world's leading building materials business.