Kingfisher Adjusted Pre-Tax Profit Rises 6% to £560 Million

The Tip Desk · April 16, 2026 · 2 min read

The home improvement retailer reported free cash flow of £512 million for the 2025/26 financial year.

Kingfisher Plc, a supplier of home improvement products and services in the UK and continental Europe, reported adjusted pre-tax profit rose 6% to £560 million for the year ended 31 January 2026. The company said the result was slightly above its twice-upgraded guidance.

Total sales increased 0.2% on a constant currency basis to £12,945 million. Underlying like-for-like sales growth of 1.4% was driven by higher customer transactions and sales volumes. The company noted that B&Q and Screwfix were standout performers, recording total like-for-like sales growth of 3.3% and 3.2% respectively. In France, Castorama and Brico Dépôt outperformed a subdued consumer market, while sales in Poland remained flat.

Growth was supported by double-digit sales increases in e-commerce and trade initiatives. The company said its core categories, which represent 67% of sales, remained resilient, with B&Q seeing strong interior paint sales and Screwfix seeing sustained growth in tools. New kitchen ranges contributed to growth in big ticket categories, which account for 15% of sales.

Gross margin increased 80 basis points to 38.1%. The company attributed this increase to buying and sourcing scale, AI-driven promotional effectiveness, improved inventory management, and the disposal of its Romanian business. Retail profit increased 4.4% to £734 million.

Capital expenditure rose 22% to £388 million, with spending directed toward technology investment, existing store maintenance, and freehold acquisitions at B&Q. The company's net debt decreased to £1,878 million from £2,015 million in the prior year. This resulted in a net debt to adjusted EBITDA ratio of 1.4 times, compared to 1.6 times in 2024/25.

The Board proposed a final dividend per share of 8.60p, bringing the total dividend for the year to 12.40p.

Directors identified geopolitical instability, cyber and data security, and the market landscape as the highest severity risks. The company also modeled a remote scenario involving a significant demand or supply shock that could result in a sales loss of approximately £1.8 billion. The company said it retains adequate headroom on its credit facilities even under this scenario.