Halfords Group (HFD) H2 2026 earnings summary

Executive summary

• Delivered strong FY 2026 results with like-for-like sales growth of 4.8% and gross margin at a decade high of 52.8%.

• Underlying PBT reached £45.4m, exceeding market expectations and at the top end of consensus.

• Robust free cash flow supported a recommended dividend increase to 9.0p per share.

• Strategic focus on optimizing operations, investing in digital, AI, and brand, and strengthening leadership.

• Continued momentum into FY 2027, guiding to the top end of analyst consensus.

Financial highlights

• Revenue grew 2.9% year-over-year to £1.76bn, with like-for-like sales up 4.8%.

• Gross margin increased by 210bps to 52.8%, driven by better buying, pricing, and FX tailwinds.

• Underlying PBT rose 4.1% to £45.4m; statutory PBT was £39m, up £69m year-on-year.

• Free cash flow was £25.3m (52-week basis), supporting a full-year dividend increase to 9.0p per share.

• Return on capital improved by 160bps to 14.2%.

Outlook and guidance

• Expect strong H1 FY 2027 performance and full-year underlying PBT at the top of consensus (£45.3m–£48.6m, restated: £49.0m–£52.3m).

• Inflationary headwinds are easing, with wage growth and business rates falling; energy costs hedged.

• Continued investment in digital, AI, brand, and operational improvements across retail and garages.

• More details on the evolve phase and further optimization to be shared at the November interims.

• Focus on rolling out category management and completing Fusion garage conversions.