Howden Joinery Group PLC (GB:HWDN)
LSE:HWDN
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Howden Joinery
(LSE:HWDN)
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Rating:72Outperform
Price Target:
919.00 p
â–²(11.06% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by solid financial performance (stable revenues, healthy profitability, positive free cash flow) and a strong earnings-call read-through (margin gains, strong cash, continued shareholder returns). Offsetting factors are increased balance-sheet leverage in 2025 and a technically stretched setup (RSI ~73), while valuation looks reasonable but not notably cheap (P/E ~18.5; ~2.5% yield).
Positive Factors
Cash generation & returns
Sustained, multi-year operating cash generation (GBP 3.8bn over 10 years) and a large year-end cash balance provide durable financial flexibility. Consistent capacity to pay dividends and fund a GBP 100m buyback demonstrates disciplined capital allocation that supports reinvestment and shareholder returns over the medium term.
Negative Factors
Rising leverage
A marked step‑up in debt in 2025 reduces financial flexibility and raises interest and refinancing risk if volumes slow. Elevated leverage constrains the balance sheet's ability to fund opportunistic investments or absorb shocks, making performance more sensitive to cyclical downturns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & returns
Sustained, multi-year operating cash generation (GBP 3.8bn over 10 years) and a large year-end cash balance provide durable financial flexibility. Consistent capacity to pay dividends and fund a GBP 100m buyback demonstrates disciplined capital allocation that supports reinvestment and shareholder returns over the medium term.
Read all positive factors
Howden Joinery (HWDN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.47B
Dividend Yield2.57%
Average Volume (3M)1.75M
Price to Earnings (P/E)16.9
Beta (1Y)1.53
Revenue Growth0.13%
EPS Growth-0.06%
CountryUK
Employees12,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.33
Shares Outstanding539,969,360
10 Day Avg. Volume1,331,594
30 Day Avg. Volume1,746,713
Financial Highlights & Ratios
PEG Ratio2.59
Price to Book (P/B)3.80
Price to Sales (P/S)1.87
P/FCF Ratio13.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£987.50Price Target Upside19.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.51
Revenue Forecast (FY)£2.53B
Howden Joinery Business Overview & Revenue Model
Company Description
Howden Joinery Group Plc, a trade kitchen supplier, provides various products across kitchens, joinery, and hardware in the United Kingdom, France, and Belgium. It offers kitchen cabinets, surfaces, fittings, storages, fitted kitchens, kitchen doo...
How the Company Makes Money
Howden makes money primarily by selling kitchens and joinery products through its depot network. Revenue is generated from (1) kitchen sales, including cabinetry and related kitchen components and, where sold, associated items such as worktops and...
Howden Joinery Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a strong operational and financial performance: revenue and profit growth, margin expansion, industry‑leading service levels (99.98% service) and robust cash generation. Management is investing heavily to scale (capex, depot openings, Runcorn development) and announced a GBP 100m buyback while maintaining dividend growth. Key risks flagged are a competitive UK market, ongoing inflationary cost pressure (~GBP 30m expected in 2026), capex/working capital intensity and a need to improve underperforming French depots. On balance, the positives (top‑end results, margin gains, cash returns and clear strategic initiatives) outweigh the challenges.Positive Updates
Group revenue growth
Group sales increased 4.1% year‑on‑year to GBP 2.4bn (UK revenue GBP 2.3bn, +3.8%). Same‑depot UK sales rose 2.6%. International revenue was EUR 99m, up 12% (9% on a same‑depot basis).
Negative Updates
Challenging and competitive UK market
Management estimates the UK kitchen market fell around 3% in 2025. The market remains highly competitive with aggressive retail promotions and pricing activity that the group must actively counter while protecting margins.
Read all updates
Q4-2025 Updates
Positive
Negative
Group revenue growth
Group sales increased 4.1% year‑on‑year to GBP 2.4bn (UK revenue GBP 2.3bn, +3.8%). Same‑depot UK sales rose 2.6%. International revenue was EUR 99m, up 12% (9% on a same‑depot basis).
Read all positive updates
Company Guidance
The guidance from the call was that Howdens finished FY2025 strongly (group sales +4.1% to GBP 2.4bn; UK sales GBP 2.3bn, +3.8% and +2.6% same-depot; international EUR 99m, +12% / +9% same-depot), delivered industry‑leading margins (gross margin +110bps; EBIT margin 14.7%; PBT GBP 345m, +5.1%; EPS +8%; effective tax rate 22.4%) and exceptional service (73 million deliveries; 99.98% primary-to-depot service), ended the year with GBP 345m cash and strong operating cash generation (GBP 3.8bn over 10 years), and expects for 2026: a broadly flat UK kitchen market, to meet current market expectations, normalized CapEx ~GBP 125m (maintenance ~GBP 30m), cash tax ~GBP 60m (ETR ~23–24%), inflationary headwinds of ~GBP 30m offset where practicable by productivity savings, continued investment in strategic initiatives (GBP 28m in 2025), ~25 UK depot openings and ~45 refurbishments planned, ~85 international depots targeted (Ireland to ~21), 24 new kitchens in stock for peak trading, a final dividend of 16.9p (total 21.9p) and a new GBP 100m share buyback alongside returning ~GBP 216m to shareholders in 2025.Howden Joinery Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.42B | 2.32B | 2.31B | 2.32B | 2.09B |
| Gross Profit | 1.52B | 1.43B | 1.40B | 1.41B | 1.29B |
| EBITDA | 526.10M | 503.00M | 485.30M | 544.70M | 515.10M |
| Net Income | 267.70M | 249.30M | 254.60M | 374.20M | 314.50M |
Balance Sheet | |||||
| Total Assets | 2.35B | 2.24B | 2.06B | 2.03B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 344.50M | 343.60M | 282.80M | 308.00M | 515.30M |
| Total Debt | 1.31B | 681.00M | 684.50M | 665.30M | 591.20M |
| Total Liabilities | 1.16B | 1.11B | 1.09B | 1.16B | 1.06B |
| Stockholders Equity | 1.19B | 1.13B | 978.40M | 871.70M | 991.50M |
Cash Flow | |||||
| Free Cash Flow | 342.30M | 278.10M | 253.40M | 255.60M | 351.50M |
| Operating Cash Flow | 498.80M | 400.10M | 372.30M | 396.40M | 437.40M |
| Investing Cash Flow | -156.40M | -112.10M | -114.20M | -154.70M | -85.80M |
| Financing Cash Flow | -340.70M | -228.90M | -285.40M | -444.60M | -267.00M |
Howden Joinery Technical Analysis
Positive
827.50
Price Trends
830.27
Negative
821.70
Positive
822.54
Positive
Market Momentum
-6.60
Negative
55.18
Neutral
75.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HWDN, the sentiment is Positive. The current price of 827.5 is above the 20-day moving average (MA) of 794.14, below the 50-day MA of 830.27, and above the 200-day MA of 822.54, indicating a neutral trend. The MACD of -6.60 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HWDN.
Howden Joinery Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £56.56M | 3.42 | 20.89% | 0.55% | 2.64% | 23.89% | |
72 Outperform | £4.47B | 16.92 | 23.58% | 2.57% | 0.13% | -0.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £300.41M | 4.43 | 13.23% | ― | 4.38% | ― | |
49 Neutral | £40.47M | 9.31 | -22.13% | 3.45% | -4.23% | -435.86% | |
45 Neutral | £43.83M | -0.14 | 67.51% | ― | -9.72% | 10.94% | |
42 Neutral | £24.80M | -0.46 | -61.90% | ― | -11.65% | -273.57% |
* Consumer Cyclical Sector Average
GB:HWDN
Howden Joinery
827.50
153.13
22.71%
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Howden Joinery Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Howden Joinery Executives Sell Shares After LTIP Awards Vest
Neutral
Apr 10, 2026
Howden Joinery has confirmed the vesting of retention awards granted in April 2023 under its Long Term Incentive Plan to operations director Julian Lee and supply chain and IT director Richard Sutcliffe. Each executive received 25,000 ordinary sha...
Executive/Board ChangesRegulatory Filings and Compliance
Howden Joinery executives retain shares as LTIP awards vest
Neutral
Apr 9, 2026
Howden Joinery Group has confirmed the vesting of long-term incentive awards granted in April 2023 to senior executives under its Performance Share Plan. The awards were subject to three-year performance conditions tied to profit before tax, relat...
Regulatory Filings and Compliance
Howden Joinery Updates Voting Share Capital After Treasury Share Transfer
Neutral
Apr 7, 2026
Howden Joinery Group PLC has transferred 931,857 ordinary shares from treasury at nil consideration under an employees’ share scheme, reflecting ongoing use of equity-based incentives for staff. Following this transaction, the company report...
Regulatory Filings and Compliance
Howden Joinery Updates Share Capital and Voting Rights Base
Neutral
Apr 1, 2026
Howden Joinery Group PLC has reported that as of 31 March 2026, its issued share capital comprised 541,517,203 ordinary shares of 10 pence each, of which 2,479,691 shares were held in treasury without voting rights. This leaves 539,037,512 shares ...
Executive/Board ChangesRegulatory Filings and Compliance
Howden Joinery Executives Acquire Deferred Bonus Shares Tied to Two-Year Lock-Up
Positive
Mar 30, 2026
Howden Joinery has disclosed that several executive directors and senior managers purchased ordinary shares under the company’s 2025 deferred bonus arrangements, acquiring stock on 27 March 2026 at 783.4 pence per share. The awards, which in...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Howden Joinery Publishes 2025 Annual Report and Sets Date for 2026 AGM
Positive
Mar 18, 2026
Howden Joinery Group PLC has published its 2025 Annual Report and Accounts alongside the Notice of its 2026 Annual General Meeting and the associated proxy form, making these documents available to shareholders through the UK National Storage Mech...
Business Operations and StrategyRegulatory Filings and Compliance
Howden Joinery Executives Add Shares Under Employee Incentive Plan
Neutral
Mar 13, 2026
Howden Joinery Group PLC has disclosed routine share purchases by senior management under its Share Incentive Plan, in line with UK market abuse regulations. On 12 March 2026, Chief Executive Officer Andrew Livingston and PDMRs Austin Cooke and Ju...
Regulatory Filings and Compliance
Howden Joinery Confirms Updated Voting Share Capital for Transparency Filings
Neutral
Mar 2, 2026
Howden Joinery Group PLC has reported that, as of 28 February 2026, its issued share capital comprised 541,517,203 ordinary shares of 10 pence each, of which 2,479,691 shares were held in treasury. This leaves 539,037,512 shares carrying full voti...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Howden Joinery lifts profit, margins and payouts as it expands depots and takes market share
Positive
Feb 26, 2026
Howden Joinery reported 2025 group revenue up 4.1% to £2.42bn, with UK sales rising 3.8% despite a soft kitchen market and international revenues climbing 13.5% as its model gains traction in France and Ireland. Gross margin improved by 110 b...
Regulatory Filings and Compliance
Howden Joinery Executives Buy Shares Under Employee Incentive Plan
Positive
Feb 16, 2026
Howden Joinery has disclosed that Chief Executive Andrew Livingston and senior managers Austin Cooke and Julian Lee acquired small tranches of ordinary shares under the company’s Share Incentive Plan on 12 February at 889 pence per share. Th...
Regulatory Filings and Compliance
Howden Joinery Reports No Share Issuance Under Employee Incentive Plans in Latest Block Listing Update
Neutral
Feb 2, 2026
Howden Joinery Group Plc has reported that, over the six-month period from 1 August 2025 to 31 January 2026, there were no securities issued or allotted under its Long Term Incentive Plan, Co-Investment Plan or Share Incentive Plan, leaving the ba...
Financial DisclosuresRegulatory Filings and Compliance
Howden Joinery Confirms Updated Share Capital and Voting Rights
Neutral
Feb 2, 2026
Howden Joinery Group PLC has confirmed that as of 31 January 2026 its issued share capital comprised 541,517,203 ordinary shares of 10 pence each, of which 2,479,691 shares were held in treasury. This leaves 539,037,512 shares with full voting rig...
Regulatory Filings and Compliance
Howden Joinery Updates SIP Dealings for CEO and Senior Managers
Neutral
Jan 21, 2026
Howden Joinery Group has disclosed routine share dealings by senior management under its Share Incentive Plan (SIP), through which eligible employees can buy ordinary shares from gross pay either as a lump sum or via monthly contributions. The com...
Executive/Board ChangesRegulatory Filings and Compliance
Howden Joinery Executives Add Shares Through Incentive Plan
Neutral
Jan 20, 2026
Howden Joinery Group PLC has disclosed that its chief executive officer Andrew Livingston and senior managers Austin Cooke and Julian Lee have acquired small numbers of ordinary shares under the company’s Share Incentive Plan. The purchases,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.