Kingfisher (KGF) H2 25/26 earnings summary

Executive summary

• Achieved strong financial and operational performance in FY2025/26, delivering on all financial priorities and strategic growth initiatives.

• Gained market share across banners in the UK, France, and Spain, with stable share in Poland; sales growth driven by volume and transaction increases.

• Trade sales rose 23% (excluding Screwfix), e-commerce sales up 20%, and marketplace GMV up 58% to GBP 518 million.

• Maintained strong financial discipline, growing gross margin by 80 bps and delivering 13% profit growth (excluding prior year business rates refund).

• Continued investment in digital, trade, and store network expansion.

Financial highlights

• Total group sales reached GBP 12.9 billion, up 1.3% year-over-year; like-for-like sales up 1.4% (excluding -0.3% calendar impact).

• Adjusted profit before tax GBP 560 million, up 6%; adjusted EPS GBP 0.238, up 15%.

• Free cash flow generation of GBP 512 million; CapEx increased by GBP 71 million to GBP 388 million.

• Net leverage at 1.4x, maintaining a healthy balance sheet.

• Gross margin expanded by 80 bps, driven by group buying, marketplace, retail media, and FX tailwinds.

Outlook and guidance

• FY2026/27 adjusted profit before tax expected in the range of GBP 565–625 million; free cash flow targeted at GBP 450–510 million.

• Commencing a new GBP 300 million share buyback programme.

• Strategic targets include GBP 5 billion trade sales, 30% e-commerce penetration, and 1/3 of e-commerce sales from marketplaces.

• Continued focus on gross margin expansion, cost efficiencies, and working capital improvements.

• Mindful of macroeconomic and geopolitical uncertainties, but direct impact on energy and freight costs currently limited.