Howden Joinery Group Plc

Howdens reported first-half group sales growth of 3.3% and 3.7% on a trading-adjusted basis. U.K. revenue increased 3.3% to GBP 991 million and international depot revenue was EUR 46 million, up 8.5% on an adjusted basis. Underlying profit before tax rose 4.3% to GBP 122 million versus GBP 117 million in 2025, underlying EPS grew 5.5%, and underlying EBIT margin was 12.4%; gross margin was 70 basis points ahead of last year. Cash at the half was GBP 333 million, CapEx was GBP 41 million, and the company said inflationary headwinds for 2026 are now expected to be around GBP 40 million in the total cost base, GBP 10 million above prior guidance. Full-year outlook is unchanged: the U.K. kitchen market is still expected to be roughly flat year-on-year, around 25 U.K. depots are expected to open this year, and the GBP 100 million buyback remains on track to complete by year-end.

Andrew Livingston emphasized that the business is advancing on all fronts despite a challenging market, with the trade-only, in-stock model, strong stock availability and depot teams continuing to drive performance. He highlighted the DIY Kitchens acquisition as a complementary, incremental way to reach non-trade customers without changing Howdens’ core model, and said it expands the addressable market. His tone was confident and upbeat about the peak-trading period, saying the company is well prepared and that strategic investments should position Howdens well if market conditions improve.

Jacqueline Callaway focused on margin discipline, cost control and cash generation. She said gross margin was 70 basis points ahead of last year, underlying EBIT margin reached 12.4%, underlying PBT was GBP 122 million, and underlying EPS grew 5.5%. She also flagged around GBP 40 million of inflationary headwinds for 2026, including an extra GBP 10 million tied to Middle East-related pressure, while noting H1 operating costs rose GBP 21 million with GBP 9 million invested in strategic initiatives, cash ended at GBP 333 million, CapEx was GBP 41 million, and cash tax should normalize to around GBP 60 million a year at a 23% to 24% tax rate.

Analysts pressed on DIY Kitchens, asking about its addressable market, customer acquisition, integration risk, showroom plans, and whether it could affect Howdens’ core business. Management said DIY is a separate, transactional, online-only model that does not overlap with Howdens’ trade-only business, requires little paid advertising, and is meant to be incremental and accretive rather than a distraction. Questions also covered market share pressure, downtrading, depot expansion to 1,000 U.K. sites, flooring, and Runcorn; management said competition is manageable, the U.K. market is flat on a value basis and slightly down on a volume basis, and that depot growth remains supported by site availability, especially in London and other infill locations.