Kingfisher (LSE:KGF) reported a 9.9% increase in adjusted pre-tax profit to £404 million for the six months ended 31 July 2026, supported by improved gross margins, higher customer transactions and cost control.
The home improvement retailer recorded a 1.6% increase in total sales including marketplace activity, while like-for-like sales rose slightly. Screwfix, Poland and Iberia were among the main contributors to growth.
Gross margin improved by 70 basis points, and adjusted earnings per share increased 16.1%. The company also generated £339 million in free cash flow.
Following the first-half results, Kingfisher upgraded its full-year guidance for adjusted pre-tax profit and free cash flow, maintained its interim dividend and continued its £300 million share buyback programme.
Sales Increase 1.6% as Customer Transactions Rise
Kingfisher reported a 1.6% increase in total sales including marketplace activity during the first half of its financial year.
Like-for-like sales also increased slightly, supported by higher customer transaction volumes.
The group identified Screwfix, Poland and Iberia as areas of particular growth during the period.
Kingfisher operates home improvement retail brands including B&Q, Screwfix, Castorama and Brico Dépôt across the UK, Ireland, France, Poland and Iberia.
The company continues to serve both trade professionals and DIY customers through its stores, digital platforms and marketplace operations.
Adjusted Pre-Tax Profit Reaches £404 Million
Adjusted pre-tax profit increased 9.9% to £404 million for the six-month period.
Gross margin expanded by 70 basis points, while adjusted earnings per share rose 16.1%.
The improvement in profitability reflected a combination of sales growth, cost control and a one-off business rates refund.
Ongoing share buybacks also supported adjusted earnings per share.
The business rates refund was a non-recurring benefit, meaning its contribution should be distinguished from the performance of the group’s underlying retail operations.
The supplied announcement does not provide the value of the refund or a profit figure excluding its impact.
Screwfix, Poland and Iberia Support Growth
Kingfisher reported growth at Screwfix and across its businesses in Poland and Iberia during the first half.
The performance contributed to the group’s increase in total sales and helped offset differences in trading conditions across its retail markets.
Screwfix forms a central part of Kingfisher’s trade-focused operations, while the group also serves professional customers through its other retail brands.
The company reported market share gains during the period, although the supplied announcement does not provide individual market share figures for each country or business.
Kingfisher continues to develop its retail operations across its European markets while expanding services for trade customers.
Trade Sales Penetration Reaches 31%
Trade sales accounted for 31% of Kingfisher’s sales during the first half, reflecting the group’s continued focus on professional customers.
The company has been expanding its trade offering across its retail brands, including Screwfix and its other home improvement businesses.
Kingfisher also reported increased activity through its digital channels.
Online penetration reached 22%, highlighting the contribution of e-commerce to the group’s overall sales mix.
The retailer continues to develop its digital operations, marketplace services and retail media activities alongside its physical store network.
Free Cash Flow Reaches £339 Million
Kingfisher generated £339 million in free cash flow during the six months ended 31 July 2026.
The company reported the cash generation alongside its increase in adjusted pre-tax profit and improvement in gross margin.
Following the interim results, Kingfisher raised its full-year free cash flow guidance.
The supplied announcement does not specify the revised cash flow target or provide a comparative first-half figure.
Free cash flow remains relevant to the group’s investment plans and shareholder distributions, including dividends and share buybacks.
Interim Dividend Maintained at 3.8 Pence
Kingfisher maintained its interim dividend at 3.8 pence per share.
The group is also progressing a £300 million share buyback programme.
Share repurchases contributed to the increase in adjusted earnings per share during the first half, alongside the improvement in profitability.
The company continues to return capital to shareholders while investing in its retail and digital operations.
The supplied announcement does not specify how much of the £300 million buyback programme has been completed.
Full-Year Profit and Cash Flow Guidance Upgraded
Kingfisher upgraded its full-year expectations for adjusted pre-tax profit and free cash flow following the first-half performance.
The revised outlook reflects the group’s sales performance, gross margin improvement and cash generation during the period.
The company reported higher customer transactions, growth in its trade and digital channels, and market share gains across its operations.
However, the supplied announcement does not include the revised numerical guidance ranges.
The contribution from the one-off business rates refund should also be considered when assessing the relationship between first-half profitability and the group’s underlying performance.
Outlook
Kingfisher enters the second half of its financial year with upgraded guidance for adjusted pre-tax profit and free cash flow.
The group continues to focus on expanding its trade customer offering, developing its e-commerce and marketplace activities, and managing operating costs.
Its first-half results included a 1.6% increase in total sales including marketplace activity, adjusted pre-tax profit of £404 million and free cash flow of £339 million.
Kingfisher has maintained its interim dividend at 3.8 pence per share and is continuing its £300 million share buyback programme.
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