Howden Joinery Group PLC

Latest Results (03.04.2026):

Howden Joinery Group PLC — Full Year 2025 results (52 weeks to 27 December 2025; including Q4 2025): Group revenue rose 4.1% to £2,418.0m while profit before tax increased 5.1% to £344.9m and basic EPS grew 7.9% to 49.2p. The Board is proposing a final dividend of 16.9p (total 21.9p, +3.3% year‑on‑year) and has announced a new £100m share buyback; year‑end cash was £344.5m and the Group remains debt‑free. Management expects the UK kitchen market to be broadly flat in 2026 and reiterated continued investment in strategic initiatives.

Financial summary

Revenue £2,418.0m (+4.1%); UK revenue £2,333.2m (+3.8%); International revenue £84.8m (+13.5%). Operating profit £355.3m (+4.7%), PBT £344.9m (+5.1%). Basic EPS 49.2p (up from 45.6p). Gross profit increased by £84.3m to £1,515.4m.

Margins & profitability

Gross margin improved 110bps to 62.7% (benefited from pricing, volume and sourcing/manufacturing efficiencies and a c.£6m one‑off insurance receipt). EBIT margin at 14.7% (+10bps). Effective tax rate 22.4% (lower than prior year due to patent box refinements).

Cash, capital allocation & returns

Net cash inflow before working capital £537.6m; closing cash £344.5m. Capex £156.5m (including £31m freehold purchase of Runcorn); excluding freehold capex ~£125.5m. Dividends paid £116.6m; share buybacks £100.2m in 2025 and new £100m programme announced for 2026. Board policy: return surplus cash when year‑end cash >£250m.

Operations & growth

Opened 23 new UK depots (891 total) and 3 international depots (79 total internationally). Delivered 24 new kitchen ranges in 2025, continued depot reformats (60 completed) and invested in manufacturing (Runcorn upgrade). International progress strong in France and Republic of Ireland.

Efficiency & cost management

Delivered £41m of productivity and efficiency savings and c.£14m sourcing benefits. Operating expenses rose (strategic investment c.£28m, inflationary cost headwinds ~£27m) but were partially offset by efficiency gains.

Guidance & outlook for 2026

Planning assumption: UK kitchen market level year‑on‑year in 2026. Technical guidance: ~£30m inflationary cost headwinds, ~£30m continued strategic investment, net interest c.£16m, full‑year tax rate 23–24%, capex c.£125m, and cash tax c.£60m. Management remains on track with analysts’ consensus (PBT ~£354m average).

Other notable items

Pensions: IAS 19 deficit £7.8m (scheme closed to future accrual; surplus on ongoing funding basis). Sustainability: Scope 3 target achieved in 2025; Net Zero roadmap to 2050 with ongoing supplier engagement and site decarbonisation initiatives. Going concern and three‑year viability assessed as robust by the Board.