Kingfisher (KGF) H1 2026 earnings summary

Executive summary

• Achieved strong H1 results with sales of £6.8bn (+0.9%), adjusted PBT of £368m (+10.2%), and free cash flow up 13.5% to £478m, driven by strategic initiatives in trade, e-commerce, and innovation, resulting in market share gains across banners.

• Underlying like-for-like sales grew 1.9%, with adjusted EPS up 16.5% to 15.3p and net leverage reduced to 1.3x.

• Raised full-year profit and free cash flow guidance, now targeting the upper end of adjusted PBT £480m–£540m and free cash flow £480m–£520m.

• Accelerated £300m share buyback programme, with completion expected by March 2026, enabled by robust free cash flow and one-off positive inflows.

• Strategic growth drivers include trade, e-commerce, and retail media, delivering double-digit growth and supporting market share gains in the UK, France, and Spain.

Financial highlights

• Group sales reached £6,811m (+0.9% constant currency), like-for-like sales up 1.9%, gross profit £2,569m (+3.6%), and gross margin expanded by 100bps to 37.7%.

• Adjusted profit before tax rose 10.2% to £368m; adjusted EPS up 16.5% to 15.3p; retail profit £452m (+7.1%), margin up 40bps to 6.6%.

• Free cash flow of £478m, up 13.5% year-on-year; net leverage at 1.3x; net debt reduced to £1,726m.

• EBITDA of £744m; net cash flow of £277m, up 120%.

• Interim dividend per share maintained at 3.80p.

Outlook and guidance

• Full-year adjusted profit before tax expected at upper end of £480m–£540m; free cash flow guidance raised to £480m–£520m.

• Market outlook: UK/Ireland flat to low single-digit growth; France low to mid-single-digit decline to flat; Poland low single-digit decline to growth.

• Share buyback program of £300m to be completed by March 2026.

• Continued focus on cost discipline, margin initiatives, and strategic investments in marketing and technology.

• Market expectations unchanged, mindful of mixed consumer sentiment and political uncertainty.