Howden Joinery Group Plc · LSE:HWDN
Howden Joinery — Howden Joinery Grp Ord — FY2025 Earnings Presentation
64 slides from Howden Joinery's earnings presentation, Feb 26, 2026
Slide 1: 2025 Full Year Results
2025 Full Year Results 26th February 2026
Slide 2: Andrew Livingston, Chief Executive Officer
Andrew Livingston Chief Executive Officer
Slide 3: Business advanced on all fronts in a challenging marketplace
2025 Business advanced on all fronts in a challenging marketplace Results met our expectations, encouraging start to 2026 Group sales +4.1% year on year; business continued to perform well in final two periods of 2025 Gained UK market share, mitigating a small decline in size of market UK kitc
Slide 4: Performance demonstrates the strength of our in-stock model
2025 Performance demonstrates the strength of our in-stock model founded on local relationships Reflects combination of a strong product line-up, high stock availability, industry leading service levels and a very engaged team Benefits of ongoing investment in customer focussed strategic initiatives
Slide 5: Robust business model in fragmented markets with significant growth opportunities
Robust business model in fragmented markets with significant growth opportunities Planned for the size of the UK kitchen market in 2026 to be level with last year, following several years of decline Well prepared for the challenges and opportunities our markets present Model capable of delivering su
Slide 6: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International 6
Slide 7: Financial Review: Jackie Callaway
FINANCIAL REVIEW Jackie Callaway Chief Financial Officer
Slide 8: Financial highlights
Financial highlights Strong margin and profit delivery £m 2025 2024 % Change Strong performance against all financial metrics Sales 2,418.0 2,322.1 +4.1% Gross margins ahead by +110 bps Gross profit 1,515.4 1,431.1 +5.9% Improved EBIT margin to +14.7% with profits growing - Gross margin % 62.7
Slide 9: Sales growth
Sales growth Further market share gains achieved in challenging markets Group sales (£m) 2025 2024 Change UK revenue growth reflected: UK Same depot basis1,2 2,297.6 2,239.7 +2.6% balanced pricing and volume to support our UK Depots opened in previous 2 years 35.6 7.7 trade customers 2,333.2 2,2
Slide 10: Profit before tax
Profit before tax Solid pricing and market share gains CoGS £m efficiencies Operating Costs Gross margin up £84m, 110 bps to 62.7% Volume 14 & mix balanced pricing and volume 29 Strategic initiatives £28m further CoGS efficiencies Price (Sales) manufacturing cost base flat, offsetting inflat
Slide 11: Operating expenses
Operating expenses Efficiency savings to optimise flow through and fund future growth £m £28m investment in strategic initiatives in: Other new UK depots costs Existing UK NI/ 18 1,160 digital tools for trade convenience and NMW International depots productivity Other growth 11 Strategic 11
Slide 12: Cashflow
Cashflow Cash generation supports both investments and attractive shareholder returns £m 2025 2024 Strong operating cash flow Opening cash 343.6 282.8 2025 working capital investment to support growth Operating cash flows1 537.6 504.6 Capex investment supporting strategic initiatives Working c
Slide 13: Defined benefit pension scheme
Defined benefit pension scheme Executing strategy to reduce ongoing risks Well funded scheme, closed for future accrual Surplus on an ongoing funded basis so no contributions in the year Ongoing funding mechanism agreement with Trustee extended to 31 May 2027 Triennial valuation 31 March 202
Slide 14: Uses of cash, EPS and returns on capital
Uses of cash, EPS and returns on capital Significant value creation and attractive returns Over the past 10 years: £3.8bn £901m £814m £760m Generated in Invested in capex Returned in ordinary Returned in buybacks operating cashflow dividends and special dividends Strong track record of cash genera
Slide 15: Capital allocation
Capital allocation Delivering sustainable dividend growth and attractive returns to shareholders Maintained strong balance sheet Invest in organic expansion in Progressive and sustainable line with the strategy dividends through the cycle Well established capital allocation policy return capit
Slide 16: Summary
Summary Strong performance in challenging markets Planning for the size of the kitchen market to be level with 2025 Ongoing focus on productivity and efficiency to x offset inflation where practicable Strong balance sheet and cash generation On track to meet current market expectations for
Slide 17: Andrew Livingston, Chief Executive Officer
Andrew Livingston Chief Executive Officer
Slide 18: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International 18
Slide 19: Extending the UK footprint
Extending the UK footprint High service levels valued by customers Scope for around 1,000 depots in the UK Opened 23 depots in 2025 891 depots trading at end of 2025* Expect to open c.25 new depots in 2026 * One depot closed in 2025 19
Slide 20: Updated format provides the best working and trading environment
Updated format provides the best working and trading environment and enables us to make productivity and space utilisation gains 20
Slide 21: Updated format strengthens our competitive position, revamp programme well advanced
Updated format strengthens our competitive position, and our revamp programme is well advanced 2025 60 revamps* taking total completed to 410* 2026 Converting around 45 more depots*. By year-end: 52% 68% of depots opened in the old format revamped 77% of all depots trading in the updated format
Slide 22: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International 22
Slide 23: Sales of new product (NPI) make a significant contribution
Sales of new product (“NPI”) make a significant contribution to our performance 2025 29% of UK product sales were of new product introduced in 2025 and the prior two calendar years* * Two years to end of December 2024 23
Slide 24: Market leading product which is easy to fit and fairly priced
Providing our customers with market leading product which is easy to fit and fairly priced, is a key feature of our model Price to feature prominently again in 2026, as it did in 2025 For 2026: Emphasis on value for money and choice at all price points Well-positioned in all product categories New
Slide 25: Managing our kitchen portfolio
Managing our kitchen portfolio to balance customer choice, availability, and profitability Platform sharing across our families helps us introduce new kitchens at more price points cost effectively Stock and replenishment enhancements enable us to offer best availability on a broader offering at a l
Slide 26: NEW in 2026
NEW in 2026 New colours for our entry level families Greenwich Porcelain
Slide 27: NEW in 2026
NEW in 2026 New colours for our entry level families Witney Porcelain
Slide 28: NEW in 2026
NEW in 2026 New colours for our entry level families Allendale Reed Green
Slide 29: NEW in 2026
NEW in 2026 New colours for our most modern mid-level family Frome Mist
Slide 30: NEW in 2026
NEW in 2026 New colours for our most modern mid-level family Frome Pebble
Slide 31: NEW in 2026
NEW in 2026 New colours and finishes for our best performing mid-level families Clerkenwell Super Matt Mist
Slide 32: NEW in 2026
NEW in 2026 New colours and finishes for our best performing mid-level families Halesworth Ash Green
Slide 33: Classic timber kitchens performed particularly well
2025 Classic timber kitchens performed particularly well, with Paint to Order options growing in popularity 2025: More Chilcomb and Elmbridge kitchens sold in Paint to Order colours, which are priced at a premium to stock colours 2026: Refreshing Paint to Order palette with four new colours for the
Slide 34: A market leading solid work surface capability
A market leading solid work surface capability Solid worktops often associated with sales of higher priced kitchens Our manufacturing capacity for these products is now amongst the largest in the UK, helping us to offer rapid template to fit times Increased the number of decors in recent years 2026
Slide 35: Major refresh of Lamona own label appliance brand
2026 Major refresh of Lamona, our award-winning own label appliance brand, in place 35
Slide 36: Innovating with own label brands in flooring and ironmongery
2026 Innovating with own label brands in flooring and ironmongery Engineered wood flooring with New finishes and designs in ironmongery market leading water resistance 36
Slide 37: Innovating in Doors and Joinery sub-categories
2026 Innovating in Doors and Joinery sub-categories Solid engineered doors Wall panelling Stair parts Loft spaces 37
Slide 38: Fitted bedroom sales increased
2025 Fitted bedroom sales increased, and represent a growing source of incremental sales and profits Helping us to foster customer relationships Suits skills of customers who fit kitchens and a substantial share of bedroom sales made to new customers plus customers who had traded with us infrequen
Slide 39: High stock availability is a key component of our offer
High stock availability is a key component of our offer; In 2025, deliveries to depots totalled some 73m pieces and our service level from primary to UK depots was 99.98% 39
Slide 40: Recent investment in manufacturing has strengthened our competitive position
Recent investment in manufacturing has strengthened our competitive position: Increased manufacturing capacity plus broader and new capabilities New kitchen furniture lines at Second skirting and architrave Purpose built facility for Howdens Work Surfaces facility Howden site line at Howden site Pai
Slide 41: Development works at Runcorn underway
Development works at Runcorn underway and freehold of site acquired The works will take some three years to complete and will give us more capacity, broader capabilities and lower CoGS than otherwise would be the case 41 Runcorn, Cheshire
Slide 42: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International 42
Slide 43: Increased usage of online trade account facilities
2025 Increased usage of online trade account facilities C.59k new account registrations C.61% of customers had an online account at the year-end Total user views of trade platform +45% C.80% of users looking at their individual and confidential prices Online account holders trade with us more
Slide 44: High levels of engagement with our web platform and social media
2025 High levels of engagement with our web platform and growing social media presence c.24m site visits #1 for fitted kitchen site visits amongst specialists Page view metrics at consistently high levels 721k followers across leading social media sites +18% up 2024 6.8m monthly engagements 44
Slide 45: Increased usage of upgraded Click and Collect service
2025 Increased usage of upgraded “Click and Collect” service for ‘every day’ products, backed by real time stock surety 2025 New account management tool helping depots manage their customer relationships more effectively 45
Slide 46: New depot pricing and margin tool PAM
2026 New depot pricing and margin tool “PAM” now operating in all UK depots Designed in-house, PAM makes depot price management easier and more effective Provides comprehensive data for making pricing decisions with a higher degree of confidence Enables depots to assess quickly the impact of price c
Slide 47: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International 47
Slide 48: France & Belgium: sales increased at a higher rate
2025 France & Belgium: Year-on-year sales increased at a higher rate than the previous two years 2025 Business responded positively to the measures taken to improve existing depot sales performance, in tough market conditions New highly experienced leadership team adept at depot management in place
Slide 49: Sales in the Republic of Ireland well ahead of last year
2025 Sales in the Republic of Ireland well ahead of last year Market suits our differentiated model Opened for business in 2022, using a similar location strategy to France Re do with five new Supported by UK infrastructure and group digital platform 16 depots trading by end of 2025 (including nine
Slide 50: Well-planned on our strategic initiatives for 2026
2026 Well-planned on our strategic initiatives as we deliver value to customers across all price points 24 new kitchen ranges in stock well ahead of peak trading Best ever line-up in all product categories Rooster promotional activity and other price initiatives Improvements to service and a
Slide 51: 2026 Outlook
2026 Outlook So far this year, on track to meet current market expectations for 2026 Planned for the size of the UK kitchen market to be level with 2025, following several years of decline Well-prepared for the challenges and opportunities ahead Aim to retain a profitable balance between price
Slide 52: An introduction to Howdens
APPENDIX An introduction to Howdens February 2026 The UK’s #1 Specialist Kitchen and Joinery Supplier
Slide 53: UK's leading specialist trade-only kitchen and joinery supplier
We are the UK’s leading specialist trade-only kitchen and joinery supplier 2025 FINANCIAL HIGHLIGHTS ATTRACTIVE END MARKETS % Howdens revenue £2.4bn £355m 62.7% 90% Residential 95% Revenue Operating profit Gross margin Repair, Maintenance, Improvement (RMI) 49.2p 21.9p £345m Basic EPS Total dividend
Slide 54: We help our trade customers achieve exceptional results
We help our trade customers achieve exceptional results Empowered depot teams support the needs of the local builder CORE STRENGTHS* Trade only focus and the best local prices. Local delivery model – 85% of customers are 891 500k+ less than 5 miles from a Howdens depot. Product leadership - al
Slide 55: Differentiated model focused on trade relationships and service
Differentiated model focused on our trade relationships and service Market leading Kitchen and Joinery Trade only: An empowered, depot-led business, product ranges focused on our customers’ needs close to the trade Knowledgeable depot teams Products immediately available locally Competitive confiden
Slide 56: Large and attractive markets with significant future growth potential
Large and attractive markets with significant future growth potential UK market by revenue1 UK market revenue by vendor category1 Contract specialists 9% 26% Trade specialists Independents 34% 31% Retail Kitchens Joinery Howdens £6bn £5bn £2.3bn £11bn* * Established Kitchens and joinery markets only
Slide 57: Long-term drivers of the kitchen and joinery market
The long-term drivers of the kitchen and joinery market support continued growth Structural drivers Recent trends The UK population could reach nearly 74 million by 2036 with net More than a quarter of working adults in Great Britain (28%) were migration fuelling the rise. The UK population will
Slide 58: Major steps to achieve net zero emissions
We have identified the major steps to achieve net zero emissions 58
Slide 59: Total kitchen market volumes at the lower end of the cycle
Total kitchen market volumes at the lower end of the longer-term cycle Average kitchen market volume Howdens has gained market share through the economic cycle 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020/21 2022 2023 2024 2025 Macroeconomic (avg.) (estimated) headwinds are
Slide 60: Howdens is a growth compounder with sector leading margins
Howdens is a growth compounder with sector leading margins £2.4bn Revenue Return on sales (reported) (%) Gross margin (%) 62.7% £0.8bn £355m 56.2% 14.7% £80m 10.3% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 60
Slide 61: Historical sales growth has been robust in previous downturns
Historical sales growth has been robust in previous downturns Howdens demonstrated greater resilience versus peers during …during the 35%35% the GFC… COVID-19 pandemic... …and once again in 21% 2023 19% 17% 17% 14%14% 14% 14% 13% 13% 12% 11% 11% 12% 11% 10% 9% 8% 8% 7% 7% 8% 8% 6% 5% 6% 5% 6% 5% 6%
Slide 62: Strong track record of cash generation, investment, and capital returns
Strong track record of cash generation, investment, and capital returns Over the past 10 years: £3.8bn £901m £814m £760m £495m Generated in operating Invested in capex Returned in ordinary Returned in buybacks cashflow dividends and special dividends £373m £284m £270m £100m £238m £209m £187m £164m £
Slide 63: Howdens' investment case
Howdens’ investment case Sustainable growth, sector leading margins and strong cash generation A differentiated business model with benefits of scale and local trade relationships A well-established strategy to deliver profitable growth Leading positions in attractive markets with opportunities to g
Slide 64: www.howdenjoinerygroupplc.com www.howdens.com
www.howdenjoinerygroupplc.com www.howdens.com
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