Howden Joinery shares jumped on Thursday as the kitchen specialist impressed with strong 2025 results.
Shares rose 9% as the group’s revenue rose 4.1% to £2.42bn and pre-tax profit climbing 5.1% to £344.9m, as the kitchen specialist continued to take market share despite a sluggish backdrop for the wider UK kitchen market.
UK revenue, which accounts for the bulk of the business, grew 3.8% to £2.33bn, driven by balanced pricing and volume growth.
The international arm, spanning France, Belgium, and the Republic of Ireland, produced strong growth in percentage terms, with revenue up 13.5% to £84.8m as the company builds out its model overseas.
“The business advanced on all fronts in the year. We gained market share and delivered a strong operational performance with profit growth ahead of sales,” said Andrew Livingston, Chief Executive.
“Alongside this, we continued to invest in our strategic initiatives which is helping our trade customers win more business while making our operations more efficient and productive.”
Gross margins widened by 110 basis points to 62.7%, helped by sourcing and manufacturing efficiencies that more than offset cost inflation. The group also delivered £41m in productivity savings across its cost base.
Operating profit rose 4.7% to £355.3m, while basic earnings per share came in at 49.2p, up 7.9% on the prior year.
Cash generation remained strong, with £344.5m on the balance sheet at year’s end. The board proposed a final dividend of 16.9p, taking the full-year payout to 21.9p — a 3.3% increase — and announced a fresh £100m share buyback programme for 2026.
On the operational front, Howden opened 23 new UK depots during the year, with 18 of those arriving in the final two trading periods. Three further depots were added internationally, bringing the Republic of Ireland network to 16 locations.