Howden Joinery’s shares ticked higher after half-year profit grew faster than sales, extending a margin-expansion trend from a soft UK kitchen market.
Howden Joinery Group shares rose modestly on Thursday after the kitchen and joinery supplier reported first-half profit growth that outpaced sales, with underlying margins widening for a second straight reporting period.
Shares in the FTSE 100 group were trading at 782p in London on Thursday morning, up 0.9% from Wednesday’s close of 775p. The stock remains well inside its 52-week range of 713p to 981p, having pulled back from a February 2026 peak before recovering some ground since lows hit in May.
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Howdens reported group sales of £1.03 billion for the 24 weeks to 13 June, up 3.3%, or 3.7% adjusting for one fewer trading day than a year earlier. Gross margin improved to 62.8% from 62.1%, and underlying operating profit rose 5.5% to £128.1 million, lifting the underlying operating margin to 12.4% from 12.2%. Statutory pre-tax profit slipped 1.2% to £115.8 million after £6.4 million of costs tied to the newly completed acquisition of DIY Kitchens; on an underlying basis, pre-tax profit rose 4.3% to £122.2 million. The board raised the interim dividend by 2% to 5.1p a share, payable on 20 November 2026 to shareholders on the register on 16 October 2026.
The margin improvement follows a similar 110 basis point gross margin gain reported at the full year, meaning Howdens has now expanded margins for a second consecutive reporting period despite what management continues to describe as a challenging UK kitchen market. Chief executive Andrew Livingston said: “Our first half performance demonstrates the strength and growth potential of our differentiated, in-stock, trade-only business model.”
Howdens, the UK’s largest specialist kitchen and joinery supplier, completed its £390 million acquisition of online retailer DIY Kitchens on 23 June, funded partly by a new £240 million term loan. The company’s planning assumption is that the UK kitchen market will be flat over 2026, and it now expects around £40 million of cost headwinds in the second half, up from an earlier £30 million estimate, due to disruption in the Middle East affecting supply chains.
Analysts remain broadly positive. Berenberg Bank reissued a Buy rating on Thursday with a 1,075p price target on Howden Joinery. Howdens itself said trading so far this year has been in line with expectations and that its full-year outlook is unchanged.
The company said it is “well prepared” for its autumn peak trading period, supported by what it called its best-ever product line-up, and reiterated that its £100 million share buyback will be completed in the second half. With DIY Kitchens now integrated and cost inflation building, attention turns to Howdens’ trading update on 5 November, when markets will look for confirmation that momentum has carried through the crucial autumn season.