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Howden Joinery
(LSE:HWDN)
Select Model
Select Model
Rating:68Neutral
Price Target:
845.00 p
▲(5.03% Upside)
Action:Downgraded
Date:07/23/26
The score is driven primarily by solid fundamentals and a positive earnings update (profitable operations, positive cash generation, strong H1 results, and ongoing capital returns), partially offset by increased balance-sheet risk from the 2025 debt step-up and near-term cost headwinds. Technically, the stock is in a weak trend (below key moving averages with negative MACD), while valuation is supportive with a reasonable P/E and a ~2.8% dividend yield.
Positive Factors
Trade Depot Network
The nationwide depot network and high stock availability support fast fulfillment for trade customers, reinforcing repeat purchasing and making service reliability a durable competitive advantage in professional installation markets.
Negative Factors
Higher Leverage
The sharp debt increase weakens balance-sheet resilience and may constrain investment or shareholder returns if demand deteriorates. Greater leverage also raises the sensitivity of earnings and cash flow to operational volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Trade Depot Network
The nationwide depot network and high stock availability support fast fulfillment for trade customers, reinforcing repeat purchasing and making service reliability a durable competitive advantage in professional installation markets.
Read all positive factors
Howden Joinery (HWDN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.08B
Dividend Yield2.89%
Average Volume (3M)1.51M
Price to Earnings (P/E)15.5
Beta (1Y)1.57
Revenue Growth4.15%
EPS Growth5.60%
CountryUK
Employees12,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.49
Shares Outstanding544,480,100
10 Day Avg. Volume1,782,144
30 Day Avg. Volume1,506,674
Financial Highlights & Ratios
PEG Ratio2.61
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
£964.50Price Target Upside19.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.51
Revenue Forecast (FY)£2.58B
Howden Joinery Business Overview & Revenue Model
Company Description
Howden Joinery Group Plc operates as a leading trade-oriented supplier, furnishing a wide array of products across kitchens, joinery, and hardware sectors. The company conducts its business across the United Kingdom, France, and Belgium. Its compr...
How the Company Makes Money
Howden makes money mainly by selling kitchens, joinery, and associated hardware and fittings to trade professionals (e.g., builders and kitchen fitters) through its depot network. Revenue is generated at the point of sale when trade customers purc...
Howden Joinery Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call presented a constructive set of half-year results: sales, margins and profits grew (EPS +5.5%, PBT +4.3%), the balance sheet and cash generation remain strong (GBP 333m cash) and management is progressing strategic investments (Runcorn, depot reformats, digital) and an accretive acquisition (DIY Kitchens). Key challenges were highlighted — notably higher inflationary headwinds (GBP 40m), wage and operating cost pressures, and the need to optimize some international depots (France). Management emphasized disciplined cost actions (GBP 19m savings in H1), resilience of the in-stock trade model, and unchanged full-year outlook. Overall, positives around profitability, cash returns and strategic positioning outweigh the near-term cost pressures and market headwinds.Positive Updates
Group Sales Growth
Group sales increased 3.3% in H1 and were up 3.7% on a trading-adjusted basis; U.K. revenue rose 3.3% to GBP 991m and international depot revenue was EUR 46m, up 8.5% (7% same-depot).
Negative Updates
Inflationary Headwinds and Increased Cost Guidance
Expecting total inflationary headwinds of around GBP 40m across COGS and operating costs in 2026, GBP 10m higher than prior guidance due to Middle East uncertainty; first-half COGS inflationary impact ~GBP 8m.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Sales Growth
Group sales increased 3.3% in H1 and were up 3.7% on a trading-adjusted basis; U.K. revenue rose 3.3% to GBP 991m and international depot revenue was EUR 46m, up 8.5% (7% same-depot).
Read all positive updates
Company Guidance
Guidance was unchanged for FY2026: management expects the U.K. kitchen market to be broadly flat year‑on‑year on a value basis (slightly down on volume) and remains on track to meet current market expectations; inflationary headwinds of c.£40m in the total cost base (c.£10m higher than prior guidance due to the Middle East) are being mitigated (H1 delivered c.£19m of cost savings), gross margin was +70bps y/y and H1 underlying PBT was £122m (+4.3%) with an underlying EBIT margin of 12.4% and underlying EPS +5.5%; group H1 sales were +3.3% (3.7% trading‑adjusted), U.K. revenue £991m (+3.3%, +2.3% same depot), international depot revenue €46m (+8.5% adj, +7% same depot); cash was £333m at H1, working capital investment c.£12m, capex H1 £41m (normalized ~£125m p.a., maintenance ~£30m), Runcorn expansion will add ~1m rigid cabinets capacity, the group plans ~25 U.K. depot openings and ~30 reformats in 2026 (medium‑term U.K. scope ~1,000 depots; ~75% of U.K. depots expected in the updated format by year‑end), expect ~80 depots trading across France/Belgium/Republic of Ireland by year‑end, cash tax c.£60m p.a. with an effective tax rate ~23–24%, interim dividend 5.1p (+2%), and the £100m share buyback is underway (£39m completed to 21 July, £7m in H1) with the group expecting to remain net cash.Howden Joinery Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.45B | 2.42B | 2.32B | 2.31B | 2.32B | 2.09B |
| Gross Profit | 1.54B | 1.52B | 1.43B | 1.40B | 1.41B | 1.29B |
| EBITDA | 464.10M | 526.10M | 503.00M | 485.30M | 544.70M | 515.10M |
| Net Income | 266.10M | 267.70M | 249.30M | 254.60M | 374.20M | 314.50M |
Balance Sheet | ||||||
| Total Assets | 2.39B | 2.35B | 2.24B | 2.06B | 2.03B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 332.80M | 344.50M | 343.60M | 282.80M | 308.00M | 515.30M |
| Total Debt | 712.90M | 704.90M | 681.00M | 684.50M | 665.30M | 591.20M |
| Total Liabilities | 1.24B | 1.16B | 1.11B | 1.09B | 1.16B | 1.06B |
| Stockholders Equity | 1.14B | 1.19B | 1.13B | 978.40M | 871.70M | 991.50M |
Cash Flow | ||||||
| Free Cash Flow | 333.70M | 342.30M | 278.10M | 253.40M | 255.60M | 351.50M |
| Operating Cash Flow | 487.90M | 498.80M | 400.10M | 372.30M | 396.40M | 437.40M |
| Investing Cash Flow | -154.10M | -156.40M | -112.10M | -114.20M | -154.70M | -85.80M |
| Financing Cash Flow | -321.70M | -340.70M | -228.90M | -285.40M | -444.60M | -267.00M |
Howden Joinery Technical Analysis
Negative
804.50
Price Trends
785.02
Negative
786.18
Negative
805.21
Negative
Market Momentum
-8.72
Negative
45.50
Neutral
54.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HWDN, the sentiment is Negative. The current price of 804.5 is above the 20-day moving average (MA) of 759.75, above the 50-day MA of 785.02, and below the 200-day MA of 805.21, indicating a bearish trend. The MACD of -8.72 indicates Negative momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 54.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | £4.08B | 15.49 | 22.80% | 2.89% | 4.15% | 5.60% | |
63 Neutral | £67.48M | 9.46 | 22.35% | 0.48% | 5.39% | 29.75% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £330.45M | 9.71 | 12.31% | 0.69% | 2.64% | 43.03% | |
60 Neutral | £52.75M | 24.56 | 3.09% | 2.05% | -0.90% | ― | |
42 Neutral | £57.52M | -0.18 | 61.64% | 5.82% | -6.20% | -22.43% | |
39 Underperform | £8.43M | -0.10 | -61.90% | 5.49% | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
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Howden Joinery Corporate Events
Stock BuybackRegulatory Filings and Compliance
Howden Joinery cancels 372,000 shares in ongoing buyback
Positive
Aug 17, 2026
Howden Joinery Group PLC has continued its share buyback programme, repurchasing and cancelling 372,164 ordinary shares between 10 and 14 August 2026 through Barclays Bank on the London Stock Exchange. The transactions were executed at weighted av...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Howden Joinery Executives Buy Shares Under Incentive Plan
Neutral
Aug 13, 2026
Howden Joinery has disclosed that senior executives, including chief executive Andrew Livingston, have acquired ordinary shares in the company through its Share Incentive Plan at a price of 829.68 pence per share. Under the plan, eligible employee...
Stock BuybackRegulatory Filings and Compliance
Howden Joinery Advances Buyback Programme, Updates Voting Rights
Positive
Aug 10, 2026
Howden Joinery has continued its share buyback programme, repurchasing and cancelling a total of 255,118 ordinary shares between 3 and 6 August 2026 via Deutsche Bank on the London Stock Exchange. The purchases were executed at weighted average pr...
Business Operations and StrategyStock Buyback
Howden Joinery Advances £100m Share Buyback with New Barclays Mandate
Positive
Aug 10, 2026
Howden Joinery Group PLC has confirmed the next phase of its £100 million share buyback programme announced alongside its 2025 full-year results. The company has entered into an arrangement with Barclays Bank PLC, acting through its investmen...
Regulatory Filings and Compliance
Howden Joinery Clarifies Share Capital and Voting Rights Structure
Neutral
Aug 3, 2026
Howden Joinery Group PLC has reported that its issued share capital as of 31 July 2026 comprised 552,049,252 ordinary shares of 10 pence each, with 5,267,588 shares held in treasury and therefore not carrying voting rights. This leaves 546,781,664...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Howden Joinery Updates Market on Latest Share Buyback and Voting Rights
Positive
Aug 3, 2026
Howden Joinery Group PLC has continued its capital management strategy by repurchasing and cancelling a series of ordinary shares on the London Stock Exchange between 27 July and 31 July 2026, with trades executed via Deutsche Bank’s London ...
Regulatory Filings and Compliance
Howden Joinery Director Increases Stake With Share Purchase
Positive
Jul 30, 2026
On 30 July 2026, Howden Joinery disclosed that independent non-executive director Louise Provan purchased 1,261 ordinary shares in the company at 788.16 pence per share on the London Stock Exchange. The transaction, amounting to approximately ...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Howdens Director Louis Eperjesi to Join Breedon Group Board
Positive
Jul 29, 2026
Howdens has announced that its Independent Non-Executive Director, Louis Eperjesi, will take up a directorship at Breedon Group plc from early 2027, expanding his responsibilities into the construction materials sector. Breedon Group plc is a majo...
Stock BuybackRegulatory Filings and Compliance
Howden Joinery Updates Capital Structure After Latest Share Buyback
Neutral
Jul 27, 2026
Howden Joinery Group PLC has undertaken a share buyback on the London Stock Exchange, purchasing 750,000 ordinary shares of 10p each between 20 and 24 July 2026 through Deutsche Bank for cancellation. The trades were executed at weighted average p...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Howden Joinery lifts margins and expands with DIY Kitchens deal in solid first half
Positive
Jul 23, 2026
Howden Joinery reported resilient first-half trading for 2026, with group sales up 3.3% to £1.03 billion and adjusted sales 3.7% higher despite one fewer trading day, driven by balanced pricing and volume growth in the UK and double-digit rep...
Stock BuybackRegulatory Filings and Compliance
Howden Joinery updates market on latest share buybacks and voting rights
Positive
Jul 20, 2026
Howden Joinery Group PLC has continued its share buyback programme, purchasing a total of 750,000 ordinary shares between 13 and 17 July 2026 through Deutsche Bank on the London Stock Exchange for cancellation. The trades were executed at weighted...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Howden Joinery Buys Back 750,000 Shares for Treasury and Employee Schemes
Positive
Jul 13, 2026
Howden Joinery Group PLC has repurchased 750,000 of its own ordinary shares on the London Stock Exchange between 6 and 10 July 2026, with daily tranches of 150,000 shares bought at weighted average prices ranging from about 769p to 827p. The share...
Executive/Board ChangesRegulatory Filings and Compliance
Howden Joinery Executives Acquire Shares Under Incentive Plan
Neutral
Jul 13, 2026
Howden Joinery Group plc has disclosed that several senior executives acquired ordinary shares under the company’s Share Incentive Plan on 10 July 2026. Chief executive Andrew Livingston, Managing Director – Trade Austin Cooke, and Man...
Business Operations and StrategyStock Buyback
Howden Joinery Buys Back 750,000 Shares for Treasury to Fund Employee Options
Positive
Jul 6, 2026
Howden Joinery Group PLC has repurchased 750,000 of its ordinary shares on the London Stock Exchange between 29 June and 3 July 2026, via Deutsche Bank AG’s London branch, at prices ranging from 816.50p to 860.00p per share. The shares bough...
Regulatory Filings and Compliance
Howden Joinery Updates Share Capital and Voting Rights
Neutral
Jul 1, 2026
Howden Joinery Group PLC reported that its issued share capital as of 30 June 2026 comprised 554,242,672 ordinary shares of 10 pence each, with 4,067,588 shares held in treasury. This leaves 550,175,084 shares carrying full voting rights, a key re...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Howden Joinery Buys Back 441,000 Shares for Treasury to Support Employee Schemes
Neutral
Jun 29, 2026
Howden Joinery Group PLC has repurchased 441,252 of its own ordinary shares on the London Stock Exchange between 22 and 26 June 2026 through Deutsche Bank AG’s London branch. The shares, bought at weighted average prices ranging from about 8...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Howden Joinery completes acquisition of DIY Kitchens
Positive
Jun 23, 2026
Howden Joinery Group, the UK’s leading specialist kitchen and joinery supplier, serves trade customers through a large depot network in the UK and continental Europe, and manufactures much of its product range domestically at its main sites ...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Howden Joinery Issues New Shares as DIY Kitchens Acquisition Nears Completion
Positive
Jun 22, 2026
Howden Joinery Group has cleared regulatory hurdles for its acquisition of DIY Kitchens’ parent company and will issue 12,725,469 new ordinary shares to the seller, Ling Chase Holdings, with trading of the new stock on the London Stock Excha...
Stock BuybackRegulatory Filings and Compliance
Howden Joinery Buys Back 750,000 Shares for Treasury to Fund Employee Options
Neutral
Jun 22, 2026
Howden Joinery Group PLC has repurchased 750,000 ordinary shares between 15 and 19 June 2026 via Deutsche Bank on the London Stock Exchange, paying weighted average prices in the low 800 pence range. The shares will be held in treasury to satisfy ...
Executive/Board ChangesRegulatory Filings and Compliance
Howden Joinery Executives Acquire Shares Under Incentive Plan
Neutral
Jun 15, 2026
Howden Joinery disclosed that Chief Executive Andrew Livingston, Managing Director – Trade Austin Cooke, and Operations Director Julian Lee acquired small tranches of ordinary shares on 12 June under the company’s Share Incentive Plan ...
Stock BuybackRegulatory Filings and Compliance
Howden Joinery Buys Back 675,000 Shares for Treasury to Support Employee Schemes
Neutral
Jun 12, 2026
Howden Joinery Group PLC has repurchased 675,000 of its own ordinary shares on the London Stock Exchange between 8 June and 12 June 2026, via Deutsche Bank AG’s London branch. The shares, bought at weighted average prices ranging from about ...
Stock BuybackRegulatory Filings and Compliance
Howden Joinery Buys Back Shares for Employee Option Plans
Neutral
Jun 8, 2026
Howden Joinery Group PLC has repurchased 400,108 of its ordinary shares between 3 June and 5 June 2026 through Deutsche Bank on the London Stock Exchange. The shares, bought at weighted average prices ranging from about 770p to 789p per share, wil...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Howden Joinery grants long-term performance share awards to senior executives
Positive
Jun 4, 2026
Howden Joinery has granted new performance share plan awards under its Long Term Incentive Plan to key executives and senior managers, including CEO Andrew Livingston and CFO Jackie Callaway. The conditional awards, which carry no purchase price, ...
Business Operations and StrategyStock Buyback
Howden Joinery launches £100m share buyback to streamline capital structure
Positive
Jun 3, 2026
Howden Joinery Group PLC has launched the first phase of a £100 million share buyback, mandating Deutsche Bank to repurchase up to £50 million of its shares between 3 June and 31 December 2026. The mandate gives Deutsche Bank full discre...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Howden Joinery to Buy DIY Kitchens in £390m Push into Direct-to-Consumer Market
Positive
Jun 3, 2026
Howden Joinery has agreed to acquire the parent of DIY Kitchens, a vertically integrated online kitchen retailer, for £390 million, paid in cash and shares. The deal gives Howdens direct access to non-trade, self-managing consumers while DIY ...
Regulatory Filings and Compliance
Howden Joinery Updates Share Capital and Voting Rights Totals
Neutral
Jun 1, 2026
Howden Joinery Group has reported that, as of 31 May 2026, its issued share capital comprised 541,517,203 ordinary shares of 10 pence each, with 1,501,228 of these held in treasury. This leaves 540,015,975 shares carrying full voting rights, a key...
DividendsRegulatory Filings and Compliance
Howden Joinery Executives Reinvest Final Dividend in Company Shares
Positive
May 27, 2026
Howden Joinery Group has disclosed routine share transactions by senior executives following the payment of its 2025 final dividend. Under dividend reinvestment plans and the company’s share incentive scheme, ordinary shares were acquired on...
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.