Howden Joinery Group PLC

Latest Results (15.05.2026):

Howden Joinery Group PLC — Full Year 2025 results (52 weeks to 27 December 2025; covering Q4 2025). The Group delivered revenue growth, margin expansion and profit progress: group revenue rose 4.1% to £2,418.0m, gross margin improved 110bps to 62.7%, operating profit was £355.3m (+4.7%) and profit before tax was £344.9m (+5.1%). Basic EPS increased to 49.2p (+7.9%). The Board proposes a final dividend of 16.9p (total 21.9p, +3.3%) and announced a new £100m share buyback for 2026. Cash generation remained strong with year‑end cash of £344.5m.

Key numbers

Revenue £2,418.0m (+4.1%); UK £2,333.2m (+3.8%); International £84.8m (+13.5%). Gross profit £1,515.4m; gross margin 62.7% (+110bps). Operating profit £355.3m (+4.7%), EBIT margin 14.7% (+10bps). Profit before tax £344.9m (+5.1%). Basic EPS 49.2p (+7.9%). Total dividend 21.9p (+3.3%). Cash at period end £344.5m.

Profit drivers & one‑offs

Margin improvement came from pricing, higher volumes, sourcing and manufacturing efficiencies; the gross margin included a ~£6m one‑off insurance receipt for damaged production equipment. The Group also reported £41m of productivity and efficiency savings in the total cost base, which offset inflationary cost pressures.

Capital expenditure & balance sheet

Capex was £156.5m (including a £31m freehold purchase of the Runcorn site). Excluding that purchase, capex was c.£125.5m. The Group remains debt‑free (undrawn £150m RCF) and ended the year with £344.5m cash. In‑year share buybacks of £100.2m were completed and a further £100m buyback was announced for 2026.

Operational progress

Opened 23 new UK depots (18 in the final two trading periods) and 3 international depots; completed 60 depot reformats; introduced 24 new kitchen ranges in 2025; launched a pricing & margin (PAM) tool in UK depots; invested in manufacturing (Runcorn upgrade) and digital initiatives to drive trade customer leads and depot productivity.

Cost, tax and pensions

Operating expenses rose reflecting c.£28m of strategic investments and ~£27m higher inflationary costs, largely offset by productivity gains. Effective tax rate fell to 22.4% (2025) from 24.0% (2024) after refinement of a patent box claim. IAS19 pension deficit £7.8m (scheme closed to future accrual); ongoing funding shows a surplus so no company contributions currently payable.

Outlook and 2026 guidance

Management’s planning assumption is a broadly flat UK kitchen market in 2026. Technical guidance: inflationary headwinds ~£30m in the cost base, continued strategic investment c.£30m, net interest ~£16m, full‑year tax rate 23–24%, cash tax c.£60m and capex c.£125m. Analysts’ consensus PBT for 2026 ~£354m (range £345m–£383m); the Group says year‑to‑date trading is in line with expectations.

Governance and risks

Directors conclude going concern and three‑year viability assessments are robust under multiple scenarios; principal risks highlighted include market conditions, supply chain, cyber and people, with mitigation programmes in place. Sustainability progress includes achieving the 2025 Scope 3 reduction target and ongoing Net Zero commitments to 2050.