Howden Joinery Group (HWDN) H2 2025 earnings summary

Executive summary

• Group sales rose 4.1% year-over-year to £2.4 billion, with strong performance in the final periods and market share gains in the U.K. kitchen segment despite a small market decline.

• Reported profit increased 5% year-over-year, outpacing sales growth, and EPS grew 8% due to profit growth, lower tax, and share buybacks.

• Maintained industry-leading gross margins and robust operating cash flow, supporting ongoing investment and increased shareholder returns.

• Advanced strategic initiatives in depot evolution, product innovation, digital capabilities, and international expansion.

• On track to meet current market expectations for 2026, starting the year strongly.

Financial highlights

• Group sales up 4.1% to £2.4 billion year-over-year; U.K. revenue up 3.8% to £2.3 billion; international revenue up 13.5% to €99 million.

• Gross margin improved by 110 basis points to 62.7%; EBIT margin reached 14.7%.

• Profit before tax increased 5.1% to £345 million; effective tax rate reduced to 22.4%.

• Operating cash flow remained strong at £537.6 million; year-end cash balance was £345 million.

• Over £216 million returned to shareholders via dividends and buybacks.

Outlook and guidance

• Early 2026 trading is in line with expectations; planning for a flat U.K. kitchen market after years of decline.

• Targeting continued market share gains and profit growth, with ongoing investment in strategic initiatives and a new £100 million share buyback for 2026.

• Expecting to open around 25 new U.K. depots and five in the Republic of Ireland in 2026.