Howden Joinery Group (HWDN) H1 2025 earnings summary

Executive summary

• Group sales grew 3.2% to £997.6m in H1 2025 (4.3% adjusted for trading days), with market share gains in the UK kitchen segment despite a contracting market.

• Gross and net profit increased faster than sales, driven by margin expansion and cost control.

• International sales, especially in France and Ireland, saw double-digit growth, with ongoing depot expansion and strategic initiatives.

• Strong operating cash flow and robust balance sheet enabled increased interim dividends and a £100m share buyback program, with £31.8m completed in H1.

• On track with full-year outlook despite challenging market conditions, supported by product innovation and digital development.

Financial highlights

• Group revenue reached £997.6m, up 3.2% year-over-year; underlying growth was 4.3% after adjusting for trading days.

• Gross profit rose to £619.6m, with gross margin up 130bps to 62.1%, sector-leading.

• EBIT was £121.4m, with EBIT margin at 12.2%; profit before tax was £117.2m.

• EPS increased 6.5% to 16.4p, aided by share buybacks.

• Cash at period end: £321.4m, up from £165.5m year-over-year.

Outlook and guidance

• Performance in H2 so far is in line with expectations; full-year outlook remains on track despite continued market challenges.

• Market conditions expected to remain tough, with the kitchen market likely to contract again but less than last year.

• Capital expenditure for 2025 anticipated at £125m, including the Runcorn site freehold purchase.

• Tax rate for the year guided at ~24%, lower than prior due to patent box benefits.

• £100m share buyback program to be completed in H2; dividend timetable confirmed.