Howden Joinery Group (LON:HWDN) Announces Earnings Results

Key Points

• Howden Joinery reported a solid first half, with group sales up 3.3% reported and underlying profit before tax rising 4.3% to GBP 122 million. Earnings per share also increased 5.5%, indicating profit growth outpaced revenue growth.
• The company said it remains on track for full-year 2026 and left its outlook unchanged, including the view that the U.K. kitchen market is likely to be broadly flat this year.
• Management highlighted the strength of its trade-only, in-stock model, citing record customer accounts, strong stock availability, and a 99.98% service level into depots. Howdens also completed its GBP 390 million acquisition of DIY Kitchens and plans to finish a GBP 100 million buyback by year-end.

Howden Joinery Group (LON:HWDN - Get Free Report) released its earnings results on Thursday. The company reported GBX 17.30 EPS for the quarter, Digital Look Earnings reports. Howden Joinery Group had a return on equity of 23.58% and a net margin of 11.07%.

Here are the key takeaways from Howden Joinery Group's conference call:

• Howdens delivered a solid first half, with group sales up 3.3% reported and 3.7% adjusted, while underlying PBT rose 4.3% to GBP 122 million and EPS grew 5.5%, showing profit growth ahead of sales.
• The company reiterated that it is on track for full-year 2026 and left its outlook unchanged, including the view that the U.K. kitchen market is most likely to be broadly flat this year.
• Management highlighted continued strength in its trade-only, in-stock model, including record customer accounts, very high stock availability, and a world-class 99.98% service level into depots.
• Howdens completed the GBP 390 million acquisition of DIY Kitchens, which it says is complementary and opens access to non-trade, online self-service customers while remaining separate from the core trade business.
• Capital returns remain a priority: the company expects to complete its GBP 100 million buyback by year-end and lifted the interim dividend by 2%, supported by strong cash generation and a robust balance sheet.

Howden Joinery Group Price Performance

HWDN opened at GBX 784.50 on Thursday. The stock has a 50-day moving average price of GBX 788.88 and a 200-day moving average price of GBX 819.63. Howden Joinery Group has a 12-month low of GBX 713 and a 12-month high of GBX 981. The company has a current ratio of 2.10, a quick ratio of 0.94 and a debt-to-equity ratio of 59.19. The stock has a market capitalization of £4.32 billion, a P/E ratio of 16.01, a PEG ratio of 1.96 and a beta of 1.30.

Analyst Ratings Changes

HWDN has been the topic of a number of research analyst reports. JPMorgan Chase & Co. increased their price objective on shares of Howden Joinery Group from GBX 900 to GBX 955 and gave the stock a "neutral" rating in a research report on Tuesday, June 30th. Berenberg Bank restated a "buy" rating and set a GBX 1,075 price target on shares of Howden Joinery Group in a research report on Thursday. Jefferies Financial Group reiterated a "hold" rating and set a GBX 919 price target on shares of Howden Joinery Group in a research note on Thursday, June 4th. Royal Bank Of Canada raised shares of Howden Joinery Group to a "sector perform" rating and raised their price objective for the stock from GBX 900 to GBX 960 in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a GBX 1,210 price objective on shares of Howden Joinery Group in a research note on Wednesday, June 24th. Two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of GBX 1,003.17.

About Howden Joinery Group

Howden Joinery Group Plc is the parent company of Howdens. Howdens sells kitchens and joinery products to trade customers, primarily small local builders, through a network of over 850 UK depots. The business also operates over 70 depots across France, the Republic of Ireland, and Belgium. Howdens only sells to the trade - they have the expertise to ensure that our products are fitted to the highest possible standards. Local Howdens depots build trusted partnerships with trade professionals, helping them to exceed their customers' expectations and allowing their businesses and ours to profit from doing so.

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