Howden Joinery (LSE:HWDN) delivered a solid performance during the first half of 2026, reporting group revenue of £1.03 billion, up 3.3% year-on-year. Adjusted for one fewer trading day, sales increased 3.7%, supported by a combination of pricing discipline and higher volumes in the UK, alongside strong double-digit reported growth across its international operations. The business also maintained an industry-leading gross margin of 62.8%, generated £19 million in productivity and efficiency improvements, and increased underlying operating profit by 5.5%. Statutory profit, however, reflected £6.4 million of costs linked to acquisitions.
DIY Kitchens acquisition supports long-term growth strategy
During the period, Howden completed the acquisition of online retailer DIY Kitchens, expanding its presence beyond its established trade-focused business model. Management believes the addition of the fast-growing business will complement its existing operations and enhance its competitive position within the UK kitchen market. The company also increased its interim dividend, confirmed plans to complete a £100 million share buyback during the second half of the year, and maintained its full-year guidance, expressing confidence in continuing to outperform a broadly flat market despite ongoing economic uncertainty and supply chain challenges.
Financial strength underpins outlook
Howden’s positive outlook continues to be supported by resilient revenue growth, healthy margins, strong free cash flow generation and ongoing shareholder returns. Management commentary also highlighted continued operational momentum, particularly through margin expansion and cash generation. Counterbalancing these strengths are a higher level of balance sheet leverage following activity in 2025, a technically overbought share price with an RSI of around 73, and a valuation that appears broadly fair rather than inexpensive, trading on approximately 18.5 times earnings with a dividend yield of around 2.5%.
About Howden Joinery
Howden Joinery Group Plc is the UK’s largest specialist supplier of fitted kitchens and joinery products, serving primarily trade professionals through a network of 893 depots across the UK and a further 82 locations in France, Belgium and the Republic of Ireland. The company manufactures much of its product range at its facilities in Runcorn and Howden and reported revenue of £2.4 billion alongside profit before tax of £344.9 million during 2025.
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