Halfords Group (HFD) H1 2026 Pre Recorded earnings summary

Executive summary

• Delivered 4.1% like-for-like sales growth and underlying PBT of £21.2m, up 1% year-on-year, despite significant inflationary pressures and consumer uncertainty.

• Net cash position strengthened to £18.6m, up £17.3m year-on-year, with free cash flow of £27.6m.

• Gross margin expanded by 200bps to 51.4%, the highest in three years, driven by Better Buying and service mix.

• Interim dividend maintained at 3.0p per share, reflecting confidence in ongoing performance.

• Strategic priorities advanced, including Fusion garage conversions and growth in Halfords Motoring Club membership.

Financial highlights

• Group revenue increased 3.3% year-on-year to £893.3m, with Retail and Autocentres both up 3.3%.

• Underlying EBIT and EBITDA flat year-on-year; reported PBT decreased 3.4% to £17.2m due to non-underlying items.

• Group gross margin increased by 200bps to 51.4%.

• Non-underlying charge of £4m, mainly due to warehouse management system costs.

• Operating costs increased 7.9% year-on-year, mainly from labour cost inflation.

Outlook and guidance

• Confident in delivering FY26 underlying PBT in line with consensus (£36.0m–£40.7m).

• Focus on digital and brand investment, and building cycling stock ahead of summer peak.

• Full-year capital expenditure expected within £60m–£70m range.