Howden Joinery profits exceed expectations, initiates £100 million buyback program

Investing.com – Howden Joinery Group (LON:HWDN) announced on Thursday that its profit for fiscal year 2025 exceeded expectations and revealed a new £100 million share buyback program.

The company reported a pre-tax profit of £344.9 million for FY2025, with an EBIT of £355.3 million, surpassing market consensus and previous guidance by 4%.

According to the company’s earnings update released in November 2025, the market consensus had previously expected a pre-tax profit of around £331 million and an EBIT of approximately £340 million.

The better-than-expected profits were mainly due to internal factors rather than an improved market environment. Howden Joinery achieved about 4% sales growth in FY2025, while the broader market declined by around 3% during the same period.

The company also maintained strict cost controls during this time.

For FY2026, management expects UK kitchen market sales to be flat year-over-year. The company is confident in achieving a similar sales growth to FY2025, targeting around 4%, including approximately 2% sales volume growth and 2% price increases.

Management stated that “there is potential to meet current market expectations for FY2026,” with specific guidance of pre-tax profits around £354 million.

The outlook for FY2026 includes a gross margin of about 62.4%, which is expected to remain flat compared to FY2025 after excluding one-time impacts.

The company anticipates around £30 million in cost inflation, which is expected to be largely offset by ongoing efficiency improvements. Strategic initiatives will require approximately £30 million in investment.

Howden Joinery announced the launch of a new £100 million share buyback program, to be executed in FY2026, representing about 2% of the company’s market value.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.