Howden Joinery, the United Kingdom’s largest kitchen supplier, reported steady growth despite ongoing challenges in the housing market. The company, which operates a unique trade-only model selling directly to builders through a network of 894 depots, posted a 3.3 percent increase in sales to £1.03 billion for the six months ending June 30. Adjusted profit before tax rose 4.3 percent to £122 million over the same period.
Founded in 1995, Howdens serves around 500,000 trade customers and supports them with services ranging from kitchen design and advice to extensive product displays and ready stock. Its logistical backbone, comprising factories in Runcorn, Cheshire, and Howden, East Yorkshire, enables next-day delivery on larger orders, helping builders meet tight project deadlines.
Despite a broader slowdown in the property sector, Howdens has expanded its market share by capitalizing on its reliable supply chain and last-minute availability. The company also continued investing during the downturn, doubling down on capacity expansion at its Runcorn factory and refurbishing approximately 30 depots this year to feature updated kitchen displays and an expanded range of products. This includes tools and adhesives essential to fitting kitchens, reflecting the influence of Chief Executive Andrew Livingston, former CEO of Screwfix, who joined Howdens in 2018.
In a strategic shift, Howdens acquired the direct-to-consumer online platform DIY Kitchens in June for £390 million. The Barnsley-based business contributed £37 million in operating profit from £137 million in sales in 2025. Livingston expressed confidence that the transaction complements Howdens’ existing factory-to-fitted kitchen model, highlighting the higher margins and growth potential in bespoke kitchen design.
Howdens continues to grow its footprint, opening around 25 depots annually with a target of reaching roughly 1,000 locations. Each depot operates with financial autonomy, focusing on profit and cash generation rather than sales growth alone. The company held £333 million in cash reserves at the end of June, though this figure is expected to decline following the DIY Kitchens acquisition.
The firm raised its interim dividend by 2 percent to 5.1 pence per share, payable November 20, and forecasts a full-year dividend of 23 pence, representing a 3.1 percent yield. This dividend level marks a significant increase from a decade ago, when it stood at 10 pence, supported by a 60 percent rise in share value over that period. Additionally, Howdens has repurchased over half of a planned £100 million share buyback this year.
Operating profit margins have remained resilient amid inflationary pressures, with management anticipating a margin of approximately 14.7 percent for the full year, slightly up from 14.5 percent in 2025. While margins have yet to return to the peak of 19 percent seen during the post-pandemic rush for home space, Howdens aims to recover towards a 17 percent margin in the future.
Despite these positive fundamentals, the shares have declined by 12 percent this year, reflecting cautious investor sentiment amid broader economic headwinds. Broker Peel Hunt projects earnings per share of 51 pence for the full year, valuing the stock at about 14.5 times earnings, close to its five-year average of 15.5 times.
Although Howdens does not rely on a recovery in the housing market to sustain its performance, a future easing of borrowing costs and improved consumer disposable income would likely support further growth. The company’s next trading update is scheduled for November 5.