Halfords Group Plc · LSE:HFD
Halfords — Q2 2026 Earnings Presentation
18 slides from Halfords's earnings presentation, Nov 27, 2025
Slide 1: Halfords Group plc: FY26 Interim Results
Halfords Group plc: FY26 Interim Results 27 November 2025
Slide 2: Agenda
Agenda 1. HY26 performance 2. HY26 highlights 3. Outlook 4. Summary 2
Slide 3: 1. HY26 performance
1. HY26 performance
Slide 4: HY26 highlights: Underlying PBT growth and strengthening balance sheet
HY26 highlights: Underlying PBT growth and strengthening balance sheet Operating cost LfL sales: Gross margin: % of sales: +4.1% YoY 51.4% (HY25: (0.1)% YoY) (+200bps YoY) 48.5% (+210bps YoY) Underlying PBT: Free cash flow*: Net cash**: £21.2m £27.6m £18.6m (+£0.2m YoY) (£(0.5)m YoY) (+£17.3m YoY) *
Slide 5: Positive trading performance and cost control
Positive trading performance and cost control, with inflationary headwinds mitigated to deliver growth in underlying PBT Group Underlying PBT YoY 1.5 3.5 21.0 21.2 8.1 (4.2) 2.2 9.5 Total costs & efficiency = c.£11.6m (20.4) HY25 Net Inflation Trading FX Better Cost Savings Garage Investments HY26 &
Slide 6: Group gross margin reached 51.4%
Group gross margin reached 51.4%, the highest since FY22 with gains across both Retail and Autocentres Group Gross Margin % YoY 0.3% 51.4% 1.0% Optimisation of margin rate through price and mix 0.3% 0.4% Favourable hedged FX rate 49.4% Better Buying HY25 Price & Mix FX Better Buying Commercial HY26
Slide 7: Non-underlying items relate to one-off costs
Non-underlying items relate to one-off costs associated with warehouse management system; challenges now resolved ▪ LfL sales +4.1% (HY25: (0.1)%) with HY26 HY25 Change vs. FY25 positive trading in Retail and Autocentres 3.3% YoY Revenue £893.3m £864.8m 4.1% LfL ▪ Gross margin +200bps from Better Bu
Slide 8: In Retail, strong cycling sales and further gross margin expansion
In Retail, strong cycling sales and further gross margin expansion largely offset labour cost inflation Retail EBIT 1.1 Change vs. 3.6 HY26 HY25 HY25 21.2 20.6 2.2 (2.9) 3.3% YoY Revenue £533.2m £516.1m 3.9 4.0% LfL 0.0% YoY - Motoring £324.3m £324.2m 1.1% LfL (8.4) 8.8% YoY - Cycling £208.0m £191.1
Slide 9: In Autocentres, profit growth driven by Fusion program
In Autocentres, profit growth driven by Fusion program, with cost and efficiency savings offsetting material inflationary headwinds Autocentres HY26 HY25 Change vs. Autocentres exc. Avayler EBIT exc. Avayler FY25 0.5 3.4% YoY 1.0 9.9 Revenue £359.0m £347.1m 4.3% LfL 9.1 2.1 (0.9) Gross margin 54.4%
Slide 10: Another period of strong cash generation in H1
Another period of strong cash generation in H1 with closing net cash* of £18.6m Group Net Cash ▪ Closing net cash* of 21.5 £18.6m (+£8.5m vs. (3.7) FY25) 85.6 (31.2) ▪ £8.8m reduction in inventory YoY supporting free cash inflow of £27.6m (45.3) (5.2) ▪ Cash capex of £31.2m (12.6) (0.6) 18.6 (+£8.8m
Slide 11: Strong HY26 result with interim dividend maintained
Strong HY26 result with interim dividend maintained ✓ Underlying PBT up YoY despite significant inflationary pressure ✓ 200bps of gross margin expansion through continued progress on cost ✓ Good cash generation and increased balance sheet strength ✓ Interim dividend flat YoY at 3.0p 11
Slide 12: 2. HY26 highlights
2. HY26 highlights
Slide 13: As the UK's #1 in cycling, HY26 saw growth ahead of the market
As the UK’s #1 in cycling, HY26 saw growth ahead of the market ▪ Cycling +9.0% LfL in HY26 with notable strength in kids, premium and e-bikes ▪ Market leadership across the category, e.g. two thirds of kids’ bikes sold in the UK are from Halfords ▪ c.90% own-brand: exclusive product driving speciali
Slide 14: Fusion rollout continues to deliver
Fusion rollout continues to deliver, with 79 garages now trading ✓ Sales uplift of up to 50% ✓ Mix into higher margin SMR ✓ Contribution doubles at maturity ✓ c.£200k capex investment ✓ 2-year payback ✓ On track for 150 garages in total 14
Slide 15: Halfords Motoring Club continues to drive engagement
Halfords Motoring Club continues to drive engagement, reaching more than 400k premium subscribers ✓ Continued growth ✓ 6m total members ✓ 400k Premium (+18% YoY) ✓ Drives cross-shop from retail to garages ✓ Significant uplift in average customer value from Premium ✓ Spend 3x more on average ✓ c.£20m
Slide 16: 3. Outlook
3. Outlook
Slide 17: We are confident in our positioning into H2
We are confident in our positioning into H2 and expect to deliver FY26 in-line with consensus ▪ H1 performance exceeded expectations, with some benefit from market recovery ▪ H2 will see investment in digital and brand alongside retail stock build for FY27 ▪ Expect FY26 underlying PBT in- line with
Slide 18: Thank you.
Thank you. For further information, please visit www.halfordscompany.com or contact investor.relations@halfords.co.uk Halfords Group Plc Icknield Street Drive Washford West Redditch Worcestershire B98 0DE