Howden Joinery Group (HWDN) H1 2026 earnings summary

Executive summary

• Group sales rose 3.3% in H1 2026 to £1,030.6m, with trading-adjusted sales up 3.7% year-over-year, despite a challenging market.

• Industry-leading gross margin was maintained at 62.8%, with gross profit and underlying profit before tax both ahead of last year.

• Record number of customer accounts in the UK and continued volume growth in kitchens, positioning for further market share gains.

• Acquisition of DIY Kitchens for c.£400m expands addressable UK customer base and is accretive to revenue, EBIT, and EPS.

• Maintained robust balance sheet and advanced on all strategic fronts, fully meeting expectations.

Financial highlights

• Underlying profit before tax up 4.3% to £122.2m; underlying EBIT up 5.5% to £128.1m; EBIT margin at 12.4%.

• Underlying EPS grew 5.5% to 17.3p year-over-year.

• UK revenue increased 3.3% to £991m; international depot revenue up 12% (13% adjusted).

• Gross margin improved by 70bps, reflecting price increases and efficiency gains.

• Cash at period end: £332.8m; strong operating cash flow of £208.3m; CapEx in H1: £40.5m.

Outlook and guidance

• Outlook for 2026 unchanged; business on track to meet full-year expectations.

• UK kitchen market expected to remain flat year-over-year in value, slightly down in volume.

• Inflationary headwinds for 2026 now expected at £40m, £10m higher than previous guidance.

• Peak trading period in autumn anticipated, with strong product lineup and high stock availability.

• £100m share buyback to be completed in H2; capex for 2026 anticipated at £125m.