Full year results for the year ended 31 January 2026

 

Kingfisher delivers strong performance driven by strategic progress and financial discipline

 

FY 25/26 Highlights

•    Underlying^± LFL sales +1.4% driven by volume & transaction growth. Total sales +1.3%. UK banners driving growth LFL +3.3%

•    Market share gains⁽²⁾  at B&Q, Screwfix, Brico Dépôt France, Castorama France, and Spain. Poland trading in line with market

•    Standout strategic delivery

-       Trade sales growing +23% ex-Screwfix. Group trade sales penetration increased to 30%

-       E-commerce sales increased +20% ex-Screwfix. Group e-commerce penetration 21%. Marketplace GMV grew +58% to £518m

•    Adjusted PBT +6% to £560m, driven by gross margin expansion +80bps and cost discipline, more than offsetting cost pressures. Statutory PBT +23% to £378m

•    Adjusted EPS up +15% to 23.8p supported by share buybacks

•    Free cash flow of £512m underpinned by 5 days inventory improvements

•    Completed £300m share buyback. Announcing full year dividend of 12.40p per share

 

FY 26/27 Guidance⁽⁴⁾

•    Adjusted PBT of £565m-£625m and free cash flow of £450m-£510m

•    Commencement of new £300m share buyback programme

 

Thierry Garnier, Chief Executive Officer, said:

"We have continued to execute our strategy at pace and delivered good margin and cost discipline. This resulted in significant market share gains, profit growth of +13% when excluding last year's business rates one-off and strong free cash flow.

Our UK banners led the way, with sales +4% at B&Q and +4.5% at Screwfix. This reflects the growth of our digital ecosystem, increased share of wallet from trade customers and the opening of 34 new stores. 

We are making rapid progress against our strategic priorities across our banners. Screwfix already derives c.75% of sales from trade customers and c.60% from e-commerce. Elsewhere, trade sales increased +23% as we expanded ranges, enhanced services, and deepened relationships with trade professionals, while e‑commerce grew +20%, powered by the successful scale‑up of our marketplaces. E-commerce now represents one fifth of total Group sales.

With a mixed consumer environment across our markets, we continue to focus on delivering our strategic priorities, maintaining cost discipline and driving shareholder returns. This positions us well to capitalise on the attractive long-term structural growth opportunities within our markets."   

 

 

Key metrics* 2025/26 2024/25 % change reported % change cc** LFL sales +1.1% Gross profit £4,930m £4,763m +3.5% +2.5% Gross margin % 38.1% 37.3% +80bps +80bps Retail profit £734m £696m +5.4% +4.4% Retail profit margin % 5.7% 5.4% +30bps Adjusted pre-tax profit (PBT) £560m £528m +6.0% Adjusted basic EPS 23.8p 20.7p +14.9% Free cash flow £512m £511m +0.1% Net leverage(3) 1.4x 1.6x Statutory measures Total sales £12,945m £12,784m +1.3% +0.2% Operating profit £469m £407m +15.2% Pre-tax profit (PBT) £378m £307m +23.0% Basic EPS 14.0p 10.1p +39.5% Net cash flows from operating activities £1,433m £1,302m +10.1% Total dividend per share 12.40p 12.40p -

*See page 4 for further details on non-GAAP measures and other terms; **constant currencies;
^±Underlying sales growth refers to sales excluding calendar and leap year impact (LFL sales +1.1% + 0.3% = underlying LFL of +1.4%)⁽¹⁾

Note: All commentary below is in constant currency unless otherwise stated.

Financial highlights

 

Sales

·      +1.4% underlying LFL sales growth - volume-led and delivered through our progress in strategic growth drivers, successful range reviews and favourable UK weather in the spring

·      LFL sales +3.3% B&Q, +3.2% Screwfix, (2.2)% Castorama France, (2.3)% Brico Dépôt, (1.1)% Poland and +8.8% Iberia

·      Banners across the Group outperformed their markets, while Poland was in-line with the market

·      B&Q and Screwfix were standout performers, driven by trade and e-commerce initiatives, product innovation, transference from the closure of Homebase stores, and strong seasonal sales

·      Total sales +0.2%, were impacted by (0.9)% decline due to space changes, reflecting a (1.6)% impact from the disposal of Romania and a +0.7% contribution from net space growth

 

Gross margin

·      +80 basis points to 38.1%, mainly from Kingfisher's buying and sourcing scale, growth from marketplace and retail media, AI driven promotional effectiveness, improved inventory management and clearance activity, banner mix and FX tailwinds

 

Pre-tax profit

·      Adjusted PBT +6.0% growth to £560m at reported rates. +13% growth when excluding £33m one-off business rates refund benefit in the UK included in the prior year

·      Retail profit growth of +4.4% to £734m, representing a 5.7% profit margin at reported rates (+30bps vs FY 24/25)

·      Higher central costs +£18m were mainly driven by bonus and share plans

·      Lower net finance costs of £9m through lower lease interest and higher interest income

·      Statutory PBT of £378m, was up +23.0% (FY 24/25: £307m) benefitting from lower impairment charges than the previous year, and includes £111m of impairments in net store assets and goodwill

·      Adjusted EPS increase of +14.9% to 23.8p, through our profit delivery and ongoing share buyback programme. Statutory basic EPS was up +39.5% YoY to 14.0p

 

Free cash flow

·      £512m driven by earnings growth, receipts of tax settlements relating to prior years and effective working capital management, while increasing capex investment

·      Gross capital expenditure was £388m, up £71m (+22%) through freehold acquisitions at B&Q, investment in technology and in customer facing maintenance in our existing stores

·      Leverage reduced to 1.4x adjusted EBITDA (FY 24/25: 1.6x), reflecting stronger free cash flow, further supported by £97m net one-off cash inflows, primarily comprising a £64m EU state aid tax refund and £33m in net proceeds from the sale of Romania

 

Strategic highlights

 

Grow our trade business

·    Group trade sales now represent 30% of revenue (FY 24/25: 27%), trade sales grew +23% excluding Screwfix (+12% with Screwfix), driven by our expanding trade proposition across banners

·    Dedicated trade zones are now live across all banners and present in 43% of stores (excluding Screwfix). Castorama France successfully rolled out its CastoPro trade proposition across the estate in H1 and has since installed 50 dedicated trade zones in stores. Brico Dépôt France opened its first 2 Pro corners  

·    TradePoint announced its first standalone store opening in 2026 and expanded its Direct‑to‑Site offer to include products beyond the in‑store range

·    Further investment in trade sales partners with 279 now in role across the Group (FY 24/25: 105)

·    We now have a trade loyalty proposition in all geographies with total membership up +18% YoY

·    Screwfix successfully launched a new in-app loyalty programme and an enhanced Sprint proposition, with delivery now available in as little as 20 minutes covering c.60% of the UK population

·    Poland's new loyalty programme, enhanced with a cash‑back feature, has attracted 489,000 sign‑ups

·      Our updated ambition is for Group trade sales to reach £5 billion in the medium term

 

Scale our digital ecosystem

·    Group e-commerce sales penetration reached 21% (FY 24/25: 19%) and e-commerce sales grew +20% excluding Screwfix (+11% including Screwfix)

·    Marketplaces are now live across all regions. Group marketplace GMV is up +58% to £518m

·    B&Q now has 3.7m SKUs on its marketplace with GMV up +44% to £445m and a retail profit contribution⁽⁵⁾ of £15m

·    B&Q launched 15‑minute Click & Collect for 1P orders and completed the rollout of the UK's first marketplace Click & Collect service across 300 stores

·    We have started onboarding cross-border vendors. Our Group-wide onboarding process aims to provide vendors with a single pathway to access all of Kingfisher's marketplaces

·    AI-driven product recommendation and personalisation engines are live in all banners (excluding Iberia)

·    Retail media capabilities are now available across banner apps and websites. In‑store digital media screens are in pilot at Screwfix, B&Q and Castorama France

·    Castorama France led the launch of Core IQ, our data‑monetisation platform offering deep trading and digital performance insights to vendors           

 

Win through our offer, own exclusive brands and services

·    OEB accounted for 43% of Group sales (FY 24/25: 44%)

·    Launched second-generation Erbauer tool range, with Erbauer now the number one tools brand sold across the Group

·    Ashmead kitchen range launched across B&Q, Castorama France and Castorama Poland, now our #1 volume driver in kitchen ranges sold

·    Continued expansion of our OEB tool and equipment rental propositions across banners

·    Growing services offering covering design and installation, tool rental and project financing

 

Grow our banners and formats

·    Net store openings of 41 across our portfolio, which contributed +0.7% to total Group sales

·    B&Q opened 10 stores, including successfully converting 8 former Homebase stores within 3 months of acquisition and closed 3 stores

·    Screwfix opened 32 stores, including 13 new ultra-compact City stores and closed 5 stores

·    Castorama France opened its first 2 franchise stores in June 2025, converted from its existing estate

·    Brico Dépôt France opened one store in FY 25/26, transferred from Castorama France in FY 24/25

·    Castorama Poland opened one net store and is trialling standalone Design Points, offering kitchen design services in high‑traffic shopping malls

·    Screwfix France opened five stores in northern France

 

Guidance⁽⁴⁾ for FY 26/27

We expect to deliver:

·    Adjusted PBT in the range of approximately £565m-£625m

·    Free cash flow in the range of approximately £450m-£510m

 

Key Assumptions:

·      Space: sales impact of c.+1%, mainly from Screwfix UK & Ireland, B&Q and Castorama Poland

·      Net finance costs: c.£105m (FY 25/26: £91m)

·      Adjusted effective tax rate: c.26% (FY 25/26: 26%)

·      Capex: c.£400m (FY 25/26: £388m)  

·      £13m non-recurring 2025/26 losses⁽⁶⁾

 

Share buyback - completion of existing programme and new £300m programme announced

In line with our capital allocation policy, in March 2025 the Board determined that a further £300m of surplus capital was available to return to shareholders via a share buyback programme. We completed this programme on 5 March 2026.

 

The Board is pleased to announce the commencement of a further £300m share buyback programme. Since September 2021 Kingfisher has completed £1.2bn of share buybacks.

 

 

Footnotes

⁽¹⁾ Underlying growth refers to LFL sales excluding calendar and leap year impact:

Leap year impact reflects the impact of an extra day of trading on Thursday 29 February 2024. The estimated impact of the leap year on FY 25/26 LFL sales of (0.2)%. Calendar impact represents the impact of the annual calendar shift on LFL sales growth due to different days of the week falling into or out of the current period compared to the prior period. For example, historically, higher trading is seen on a Friday and Saturday as compared to a Sunday. This includes the impact of national public holidays falling on different days of the week compared to the prior period. The estimated impact of the annual calendar shift on FY 25/26 LFL sales of (0.1)%.

⁽²⁾ Market numbers based on, GfK, BRC (British Retail Consortium) and Barclays for UK; Nielsen IQ / GfK and Inoha for France; GFK for Poland; AECOC for Spain.

⁽³⁾ Refers to net debt to Adjusted EBITDA. Net debt includes £2,238m (FY 24/25: £2,253m) of total lease liabilities, including nil of lease liabilities held for sale (FY 24/25: £42m)

⁽⁴⁾ Guidance assumes current exchange rates.

⁽⁵⁾ Marketplace retail contribution includes only directly attributable run costs.

⁽⁶⁾ £4m adjusted profit before tax loss Romania in 2025/26 (Romania disposed in May 25), £9m adverse contribution to Group adjusted PBT in Turkey in 2025/26. Will not recur as Turkey JV now fully impaired

 

Non-GAAP measures and other terms

Throughout this release '*' indicates the first instance of a term defined and explained in the Glossary (Section 6). Not all the figures and ratios used are readily available from the audited condensed financial statements included in Section 4 of this announcement. Management believes that these non-GAAP measures (or 'Alternative Performance Measures'), including adjusted profit measures, constant currency and like-for-like (LFL) sales growth, are useful and necessary to assist the understanding of the Group's results. Where required, a reconciliation to statutory amounts is set out in the Financial Review (Section 3).

 

 

Contacts

	Tel:	Email:
Investor Relations	+44 (0) 20 7644 1082	[email protected]
Media Relations	+44 (0) 20 7644 1030	[email protected]
Teneo	+44 (0) 20 7420 3184	[email protected]

 

Full year results announcement and data tables

This announcement and data tables for FY 25/26 can be downloaded from the Investors section of our website at www.kingfisher.com/investors.

 

Results presentation and Q&A

A pre-recorded analyst and investor presentation will be broadcast via the Investors section of our website at www.kingfisher.com at 09.30 (UK time), which will be immediately followed by a live virtual Q&A session with management. 

 

For enquiries, please email [email protected].

 

Financial calendar

Q1 26/27 trading update	26 May 2026
Annual General Meeting	26 June 2026±
Half year results	22 September 2026±
Q3 26/27 trading update	24 November 2026±

 

^± Dates are provisional and may be subject to change

 

American Depository Receipts

Kingfisher American Depository Receipts are traded in the US on the OTCQX platform: (OTCQX: KGFHY) www.otcmarkets.com/stock/KGFHY/quote

 

 

Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better world starts with better homes and we strive to help make that happen.

 

We operate leading home improvement banners across the UK & Ireland, France, Poland and Iberia, serving both Trade and DIY customers. Our strategy centres on four strategic growth drivers for our business: 

a)   Grow our trade business

b)   Scale our digital ecosystem

c)   Win through our offer, own exclusive brands and services

d)   Grow our banners and formats 

 

Clear targets underpin our strategy

·      Trade sales to reach £5bn revenues

·      E-commerce to reach 30% sales penetration, with marketplace generating 1/3 of e-commerce sales

·      Retail media revenues of up to 3% of e-commerce sales

·      Longer-term sales impact from net space c.+1.5% to +2.5% annually

 

Our ambition is to grow sales ahead of our markets, profit ahead of sales and generate strong free cash flows.

 

Trade customers typically visit our stores more frequently and spend more than the average retail customer. We are focused on expanding our trade customer proposition across our banners through the further roll-out of trade counters, dedicated colleagues, specialised product ranges, new services and loyalty programmes, and an enhanced omni-channel customer experience.

 

Our updated ambition is for Group trade sales to exceed £5 billion in the medium term.

 

Progress in FY 25/26

We made significant progress in expanding our trade business, leveraging our existing store estate and building our expertise across stores, with trade penetration reaching 30% of total Group sales (FY 24/25: 27%). Trade sales reached £3.9bn with growth excluding Screwfix +23%.

 

Trade sales	FY 25/26 Sales £'m	Growth	FY 25/26 penetration	% Change (pts)
B&Q	935	+5.2%	23.5%	+0.3
Screwfix	2,055	+4.1%	74.6%	(0.3)
Castorama France	71	n/m	3.5%	+3.2
Brico Dépôt France	245	+26.1%	13.1%	+2.9
Castorama Poland	496	+46.6%	26.9%	+8.6
Brico Dépôt Iberia	84	+35.5%	19.7%	+3.9
Group	3,886	+12.1%	30.0%	+3.2
Group excluding Screwfix	1,831	+22.8%	18.0%	+3.5

 

Stores: Dedicated trade zones are now live across all banners. Trade zones may include elements such as dedicated customer parking, separate entrances and distinct payment points to improve speed and convenience. 43% of our stores (excluding Screwfix) have dedicated trade zones (32% FY 24/25).

 

Range and price: We expanded our trade-focused assortment with the addition of new OEB and branded products, including our new generation Erbauer tools with improved technical features. Our trade-specific range is further expanded through direct-to-site ranges and supported by trade-specific pricing.

 

People: We are investing in colleagues dedicated to trade and continue to recruit trade sales partners to build stronger and more personalised relationships with trade customers. We now have 279 trade sales partners in role (FY 24/25: 105) across the Group. Another area of focus has been on larger B2B customers where Screwfix, B&Q, Castorama Poland have appointed dedicated B2B managers.

Services: We continue to develop services for trade customers, including tool rental, direct-to-site delivery, waste management and trade credit solutions.

 

Loyalty and apps: Identifying and engaging our trade customers enables us to better understand their needs and grow our share of wallet. We now have a trade loyalty proposition across all geographies, with total membership +18% YoY. Our digital platforms continue to play a critical role, with app users remaining our most loyal and valuable customers.

 

We are scaling our digital ecosystem to offer customers faster fulfilment of orders by leveraging our store estate, and broader product ranges via our marketplace. We are leveraging data and AI to optimise the digital shopping journey. Our apps drive customer loyalty and engagement. With over 1bn annual visits across our digital channels, we are offering vendors a powerful platform to showcase their products through our growing retail media capability. We are also using data and artificial intelligence to increase productivity across our business.

Our ambition is for e-commerce to reach 30% sales penetration, one third of which from marketplace, and for retail media and data monetisation income to reach up to 3% of Group e-commerce sales.

Progress in FY 25/26

Our e-commerce strategy delivered strong results for the year. Total e-commerce sales represent 21% of Group sales (FY 24/25: 19%) and grew +11% to £2.7 billion, +20% excluding Screwfix.

E-commerce sales	FY 25/26 Sales £'m	Growth	FY 25/26 Penetration	% Change (pts)
B&Q	713	+21.5%	16.7%	+2.2
Screwfix	1,635	+5.2%	59.4%	+0.4
Castorama France	175	+23.7%	8.6%	+1.7
Brico Dépôt France	92	+3.1%	4.9%	+0.2
Castorama Poland	84	+30.1%	4.5%	+1.0
Brico Dépôt Iberia	32	+16.0%	7.3%	+0.4
Group(1)	2,737	+10.6%	20.6%	+1.7
Group excluding Screwfix	1,102	+19.6%	10.5%	+1.7

 

Speed and convenience: The expansion of digital fulfilment hubs within our estate enables availability, speed and convenience for customers. Group click & collect sales grew +8%, accounting for 63% of e-commerce sales (FY 24/25: 65%) and 88% of 1P e-commerce orders (FY 24/25: 88%). Home delivery sales grew +16%, reflecting the continued scaling of our marketplace.

 

Choice: Marketplaces are now live in all our markets and scaling rapidly through growth in vendors and SKUs. GMV* increased +58% to £518m, reaching 15% penetration of e-commerce sales (FY 24/25: 10%). Marketplace sales are generating incremental traffic that benefits our 1P business. We continue to scale the number of vendors and SKUs available with B&Q reaching 3.7m SKUs and Castorama France 1.6m SKUs. On-boarding of cross-border vendors also provides customers access to a wider range of international products. B&Q marketplace achieved a retail profit contribution of £15m, while Castorama France and Iberia marketplaces reached break even in 2025/26 after only two years of operations.

Personalisation and AI: Our AI-driven product recommendation and personalisation engines are live in all banners outside Iberia, accounting for c.£165m of Group sales, +40% versus FY24/25. We have improved search capabilities with our innovative visual search technology Lens to help customers quickly find the right products to complete their jobs. Lens has been used to complete c.300k visual searches.

Agentic commerce: We are preparing for the future of agentic commerce by enabling AI agents to discover our products, connecting to our in-house AI agents, extending natural language search across our websites, and building external partnerships to support AI-powered shopping.

Loyalty and apps: Across the Group, app customers remain our most loyal and valuable, spending c.14% more than non‑app users. Loyalty membership through our app and rewards programmes increased +13%. App sales accounted for 29%⁽²⁾  of total e-commerce sales (FY 24/25: 28%), with an average of 3.5m monthly app users (+15% YoY). We saw strong app-led engagement across our banners.

Retail media and data monetisation: Retail media digital capabilities are now live across all banners websites with testing of in‑store retail media screens at B&Q, Screwfix and Castorama France. In parallel, we launched Core IQ, our proprietary insights platform, which leverages Kingfisher's scale and customer reach to provide vendors with deep performance insights.

Productivity: Our AI-driven markdown tool is now live in B&Q, Castorama France and Poland. AI driven markdown resulted in a 15% reduction in markdown costs in Castorama France. Our supply chain visibility tool is implemented in all banners, supporting improved inventory management and faster replenishment cycles. We are sharing data with 150 OEB vendors (representing 56% of OEB sales) to allow collaborative planning, reducing average lead times and minimum order quantities to support inventory optimisation. We also developed our first AI-driven Content Generation tool being tested in four banners.

 

Footnotes

⁽¹⁾ Group total includes Screwfix France and Romania. On 2 May 2025 the Group completed the divestment of its 100% equity interest in Brico Dépôt Romania.

⁽²⁾ App sales penetration of 29% of total e-commerce sales relates to banners with an App (i.e. excludes Brico Dépôt France and Iberia).

 

We are strengthening our customer offer by expanding choice through broader product ranges including via our marketplace and new fulfilment propositions and by enhancing our trade offer so we can support the full needs of our customers. A key pillar of our offer is our own exclusive brands (private label), where we provide innovative solutions at affordable prices. This includes a rich portfolio of brands that have built strong customer relationships in their respective categories over many years, while also helping customers reduce environmental impacts through our sustainable home-based products. Alongside this, we offer a growing portfolio of complementary services that support customers with their projects and drive deeper engagement.

Progress in FY 25/26

Offer: We have significantly expanded our product offer through marketplace, now providing over 6m SKUs to complement our existing 1P ranges in‑store and online. We are also strengthening our offer for trade customers, allowing us to capture a greater share of wallet. We continue to strengthen our product offering through extensive range reviews.  c.15% of our Own Exclusive Brand (OEB) ranges are refreshed or optimised each year, ensuring our offer remains competitive, relevant and focused on customer needs.

 

Own exclusive brands: OEB remained a key source of differentiation, accounting for £5.5 billion of sales, representing 43% of Group sales (FY 24/25: 44%), and continues to be margin accretive relative to branded products. We launched the second generation of Erbauer power tools, delivering improved power, runtime and durability, along with strengthened guarantees. Since launch, the range has achieved +43% sales growth compared with the previous generation. Erbauer is now the number one tools brand sold across the Group. We remain committed to offering customers innovation at affordable prices, targeting prices 15-30% below branded products. This is enabled by strengthening our ranges at opening price points (OPP) along with building up our presence across all retail price quartiles, supported by the scale of our global sourcing model. We launched the Forge Steel hand‑tools range in Brico Dépôt France as our new OPP brand. Our entry‑price kitchen range, Pragma, expanded from Brico Dépôt France to Castorama Poland, Brico Dépôt Iberia and Screwfix. We also launched the Ashmead kitchen range at B&Q, Castorama France and Castorama Poland, providing another opening price point option. Ashmead has quickly become our #1 volume driver in kitchen ranges sold. Showing our ability to meet customer needs across price quartiles, our higher range Tydeman fitted kitchen in blackberry was recognized as the #1 'Kitchen of the year' by Ideal Home.

 

We remain committed to helping our customers reduce their impact on the environment by embedding environmental considerations at the core of our OEB proposition. We have achieved 70% of OEB sales from sustainable home improvement products (+7% vs. FY24/25), with over 20k SKUs labelled with our green star marker, making it easier for customers to navigate and shop for products with a lower impact on the environment. An example would be the OEB peat free range of compost which grew +13%.

 

Services: We are strengthening our services offer for both DIY and trade customers, focusing on solutions that remove key pain points across complex home improvement projects. This includes design, installation and financing services that support customers through full kitchen, bathroom and storage projects. We are also working to grow installation service participation to drive complete‑project sales and create additional work for trade professionals within our loyalty programmes.

 

Our banners hold leading positions in their key markets, each with a distinct model and clear customer proposition, supported by a range of store formats. Where attractive space opportunities exist that meet our investment criteria, we continue to complement our existing store estate. Compact stores play an important role in our expansion, allowing us to capture customers in high-density urban areas and offering convenience and fast fulfilment through Click & Collect and home delivery.

 

Our longer-term ambition is for net space growth to drive an uplift in sales of c.+1.5% to +2.5% per annum.

 

Progress in FY 25/26

Number of stores	FY 25/26	FY 24/25	Net openings/ closures	Planned Net openings/ closures FY 26/27
B&Q	317	310	7	5
Screwfix	979	952	27	12
Castorama France*	94	94	-	(1)
Brico Dépôt France*	127	126	1	2
Castorama Poland	108	107	1	2
Brico Dépôt Iberia	31	31	-	2
Screwfix France & Other	35	30	5	5
Group	1,691	1,650	41	27

*Includes franchise stores 

 

In FY 25/26 we opened 41 net stores across our banners. Total sales were impacted by (0.9)% decline due to space changes, reflecting a (1.6)% impact from the disposal of Romania and a +0.7% contribution from net space growth. We exited the Romanian market on 2 May 2025 through the disposal of our 100% interest in the business. We will continue to supply OEB products into Romania through our wholesale partnership with Altex, the acquirer of our Romanian business.

 

Lead the industry in Responsible Business and energy efficiency

We are committed to leading our industry in responsible business practices and energy efficiency across four priority areas for Responsible Business where we can maximise our positive impact on the lives of our customers, colleagues, communities, and the planet. For more detail please refer to our FY 25/26 Annual Report to be published in April 2026 and FY 24/25 Responsible Business Report available here.

 

Agile, human and lean

We have adopted a culture of speed and agility, given the rapidly changing environment in which we do business. This helps us to structurally reduce our cost base, with highlights for the year of the programme including:

-     Logistics efficiencies supported by ongoing optimisation of transport and warehouse operations including a reduction in distribution centre space of c.10% in France and c.28% in Poland

-     Property cost reductions with the Group completing 86 lease renewals and renegotiations during the year, delivering an average net rent reduction of c.14% alongside improvements to lease terms

-     In‑store productivity gains through revised retail structures and updated ways of working including a reduction in managerial roles, with hours reallocated to strengthen customer‑facing positions at B&Q and continued the investment in self‑checkout solutions across our banners

-     Head office productivity gains including an 80 FTE reduction in the Castorama France Head office

-     GNFR procurement efficiencies with c.£2.4bn of addressable GNFR* spend optimised through more than 300 cost‑reduction and productivity initiatives

 

For more detail on agile, human and lean - please refer to our FY 25/26 Annual Report to be published in April 2026.

 

Medium-term financial priorities

With our banner's leading market positions and momentum with our strategic growth drivers, we remain confident in our medium-term financial priorities as follows:

 

-     Sales to grow ahead of our markets:

-    LFL sales growth driven by growing our trade business, scaling our digital ecosystem and through our offer, own exclusive brands and services

-    Sales impact of c.+1.5% to +2.5% from annual net space growth in the long term

-     Profit to grow faster than sales:

-    Supported by scale benefits, higher margin initiatives, operating cost leverage, and multi-year structural cost reduction opportunities

-     Strong cash generation to drive growth investment and attractive shareholder returns:

-    Free cash flow of above £500m in the medium-term, supported by profit growth and ongoing working capital management

 

Capital allocation priorities

The Group's objectives in managing capital are to:

 

-     Invest in attractive growth opportunities

-     Deliver sustainable dividend growth

-     Provide capital returns to shareholders

-     Maintain financial resilience and an efficient balance sheet

 

We allocate capital, subject to strict returns criteria, to growth opportunities with high ROCE aligned with our strategic priorities. Our target gross capital expenditure is c.3% of total sales per annum.

 

Our target ordinary dividend cover range is 2.25 to 2.75 times, based on adjusted basic earnings per share. We may move outside of this target range, from time to time. Overall, our aim is to grow the ordinary dividend progressively over time. If surplus capital remains after having achieved all the above objectives, the Board will return surplus capital to shareholders primarily via share buybacks.

 

To maintain a solid investment grade credit rating, our maximum net debt to Adjusted EBITDA is c.2.0 times over the medium term. To retain financial flexibility, we aim to maintain strong liquidity headroom (including cash, cash equivalents and committed debt facilities), which is currently set at a minimum of £800m. As of 31 January 2026, the Group had access to over £1.1bn in total liquidity, including cash and cash equivalents of £462m (net of bank overdrafts), and access to a £650m RCF.

 

Dividend for FY 25/26

The Board has proposed a final dividend per share of 8.60p (FY 24/25 final dividend: 8.60p). This results in a proposed total dividend per share of 12.40p in respect of FY 25/26, which is in line with the prior year (FY 24/25: 12.40p) and equates to a dividend cover of 1.9 times.

 

The final dividend is subject to shareholder approval at the Annual General Meeting on 26 June 2026. If approved, it will be paid on 03 July 2026 to shareholders on the register at close of business on 29 May 2026. The shares will go ex-dividend on 28 May 2026.

 

A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the Company's shares. The last date for receipt of DRIP elections is 12 June 2026.

 

New £300m share buyback programme

In line with our capital allocation policy, the Board has determined that surplus capital is available for return to shareholders. Further to the ordinary dividend and the recently completed £300m share buyback programme, the Board is pleased to announce the return of a further £300m of surplus capital via a share buyback programme. The first tranche of this programme will begin soon. Since September 2021, Kingfisher has completed £1.2bn of share buybacks.

 

Note: all commentary below is in constant currency.

 

UK & IRELAND

£m	2025/26	2024/25	% Reported Change	% Constant Currency Change	% LFL Change
B&Q	3,971	3,820	+4.0%	+3.9%	+3.3%
Screwfix	2,755	2,636	+4.5%	+4.5%	+3.2%
Total sales	6,726	6,456	+4.2%	+4.1%	+3.3%
Retail profit	575	558	+3.0%	+2.9%
Retail profit margin %	8.5%	8.6%	(10)bps

 

Market

-     The home improvement market was flat on a full year basis, aided by favourable weather in H1 driving strong demand for seasonal products

 

B&Q

-     Total sales +3.9% to £3,971m. LFL +3.3% driven by volume, progress in trade and digital, customer transference from the closure of Homebase stores and strong seasonal performance in Q1

-     Core +1.6% led by tools and paint. Big-ticket +6.2% driven by the successful introduction of new kitchen ranges, supported by strong growth in Installations +22%. Seasonal +6.5%, driven by strong performance of outdoor categories in Q1, helped by favourable weather and successful capture of Homebase transference

-     Market share gains driven by progress in our strategic initiatives, big ticket innovation, successful capturing of transference from the Homebase store closures and opening of 8 former Homebase stores

-     E-commerce sales +21.5%, with penetration of 16.7% (FY 24/25: 14.6%) and strong performance across 1P and 3P. Marketplace GMV⁽¹⁾ grew +44.3% to £445m with a retail profit contribution⁽²⁾ of c.£15m. In addition to its 15-minute C&C for 1P orders, B&Q successfully rolled out the UK's first marketplace C&C service for 3P products across 300 stores. We have strengthened store‑to‑home fulfilment capabilities by expanding our Deliveroo partnership to more B&Q stores. B&Q's AI‑powered product recommendation and personalisation engines generated c.10% of e‑commerce sales. Hello B&Q, a new digital virtual AI assistant that provides customers with tailored advice and product recommendations, launched in Q4. B&Q also launched Lens, our visual search technology, in its app, with Lens users nearly twice as likely as website users to convert product views into purchases

TradePoint

-     Sales grew to £935m +5.2%, accounting for 23.5% of B&Q total sales (FY 24/25: 23.3%). TradePoint expanded to 224 B&Q stores, representing 70% of the total estate (FY 24/25: 217). 123 trade sales partners are in role (FY 24/25: 44), supporting strong trade sales performance. We expanded the direct‑to‑site offer, enabling trade customers to access products beyond our in‑store range and improving conversion of inbound enquiries into orders. Our partnership with Speedy Hire provides trade customers with access to heavy machinery and tools in store and via our digital channels. Trade credit solutions are live with up to 60 days of interest-free credit

-     E-commerce at TradePoint saw strong growth +12%, particularly in C&C driving store footfall. App downloads were 3 times higher in the current year, with app sales now accounting for 28% of TradePoint's online sales and stronger sales conversion rates versus the website

-     Space growth contributed +0.6%. B&Q rapidly converted 8 acquired Homebase stores early 2025. Its 12 Compact stores continue to show encouraging performance, with growth in new customers and C&C penetration running at c.3x that of the rest of the estate. TradePoint announced its first standalone store to be opened in London in Q1 2026, targeting trade customers working in dense urban areas

 

Screwfix

-     Total sales +4.5% to £2.755m, LFL +3.2% driven by strong volume growth and supported by range expansion, growing app usage and a new loyalty programme

-     Core categories (c.85% of the total) grew +3.2%. Performance was broad-based across safety & workwear, sealants & adhesives, power tools & accessories, electrical and plumbing

-     Strong market share gains across categories as Screwfix reaches new customers and continues to enhance its customer proposition

-     Trade credit solutions are live with up to 60 days of interest-free credit. Screwfix launched a new rewards programme through its app, with strong early engagement leading to a +13% increase in active rewards customers to 2.2m, supported by gamified campaigns, personalised offers and surprise perks

-     E-commerce sales increased +5.2%, bringing e-commerce sales penetration to 59.4% (FY 24/25: 58.2%). App sales grew by +14% and now account for over 41% of e-commerce sales (FY 24/25: 38%), helped by improved offering and personalised rewards, a visual search engine Lens, streamlined collection via Check-In, and rapid delivery. We have strengthened our store‑to‑home fulfilment capabilities by expanding our Deliveroo partnership to more Screwfix stores, complementing Screwfix's Sprint proposition, with deliveries in as little as 20 minutes to 60% of the UK postcodes

-     Space growth contributed +1.3% to total Screwfix sales with 27 net store openings. This included 13 new ultra-compact City stores bringing the total to 39, as our convenient locations better target professionals serving high density areas. We see potential for up to 100 City stores over time and remain on track to reach the medium-term goal of over 1,000 Screwfix stores

 

UK&I Retail Profit

-     Gross margin increased +80bps supported by effective management of product costs, supplier rebates, the margin-accretive impact of B&Q's expanding marketplace and the contribution of retail media income, supported by FX tailwinds

-     Operating costs increased +7.3% driven by higher staff costs due to wage inflation, labour flexing to support increased volumes, increased UK employer NI contributions, costs from new store openings, higher variable compensation and the annualisation of last year's £33m one-off business rates refund at B&Q. Cost increases were partially offset by savings achieved through structural cost reductions

-     Retail profit increased +2.9% to £575m (FY 24/25: £558m) or +9.4% when excluding last year's one-off business rates refund. Retail profit margin declined (10) bps to 8.5%, primarily due to the annualization of last year's business rates refund at B&Q. Excluding this prior year one-off UK profit margin improved +40bps

 

FRANCE

£m	2025/26	2024/25	% Reported Change	% Constant Currency Change	% LFL Change
Castorama	2,000	2,014	(0.7)%	(2.3)%	(2.2)%
Brico Dépôt	1,866	1,869	(0.2)%	(1.8)%	(2.3)%
Total sales	3,866	3,883	(0.4)%	(2.1)%	(2.2)%
Retail profit	97	95	+2.7%	+1.0%
Retail profit margin %	2.5%	2.4%	+10bps

 

Market

-     Market declined by c.(3)%, as consumer savings rates continue to be elevated

Castorama

-     Total sales (2.3)% to £2,000m. LFL (2.2)% ahead of the market despite disruption from restructuring the store portfolio. As 10% of the store estate was undergoing transformation, H2 LFL were impacted c.(0.6)%

-     To improve the overall offer 15% of ranges were reviewed with encouraging impact on volume in surfaces & décor, tools and garden. Seasonal performance of (0.9)% was ahead of other categories driven by cooling and outdoor in H1, while big ticket suffered from low demand in the market with LFL (4.5)%

-     Trade sales growth was driven by the successful roll-out of the CastoPro trade proposition across the estate in H1, the rapid introduction of dedicated CastoPro zones in 50 stores and the implementation of a trade loyalty programme. Trade penetration reached 9% at the end of FY 25/26. Our in‑house CastoRent service is now available across 14 stores, offering low‑cost tool rental and increasing exposure to our Erbauer and MacAllister OEB ranges

-     E-commerce sales growth was driven by the rapid expansion of Castorama's marketplace. Castorama onboarded 978 merchants, growing marketplace to 1.6m SKUs and reaching online penetration of 21%. Hello Casto, our AI virtual assistant, continued to enhance customer experience and supported conversion across 1P and 3P.  Hello Casto visits increased +61%, and we have seen customers who click through to a product from the assistant convert at more than twice the Castorama France average. Our in-house AI‑powered product recommendations and personalisation now generate c.30% of app revenue. Our data monetisation platform Core IQ was successfully launched and more than 120 1P vendors now use the platform

-     Space contributed (0.1)% to Castorama total sales, reflecting the successful conversion and opening of two franchise stores within the existing estate in June 2025. The three compact stores are trading ahead of the estate average, with an opportunity to expand this concept over time

-     Castorama is making rapid progress in the restructuring and modernisation of its lowest-performing stores. 24 stores (c.25% of estate) have now been addressed under the following initiatives, delivering encouraging early results:

-     Eight rightsized stores: Four completed in FY 25/26 have on average delivered double-digit percentage improvements in sales density on average compared to the Castorama France average. Four are scheduled to complete in FY 26/27

-     Seven comprehensive refits: Toulon La Seyne and Givors were completed in H1, with resulting LFL sales performance well ahead of the Castorama France average. Five have been completed in Q1 26/27

-     Five light touch modernisations: The stores completed in the year have delivered improvements in sales density compared with the Castorama France average following their reopening 

-     Two stores, transferred to Brico Dépôt: Montgeron has increased sales by c.10% along with a selling space reduction of 20% following transfer to the Brico Dépôt banner. The second store in Le Havre is expected to reopen in Q2

-     Franchises: The first two franchise stores opened in June, with first results encouraging. The transition to a franchise model has moved these stores from loss‑making positions to a positive profit contribution

-     Building on this momentum, Castorama has initiated work on a further nine stores

 

Brico Dépôt

-     Total sales (1.8)% to £1,866m. LFL (2.3)% with improving sequential trends from H1 to H2 and sales performance ahead of the market. Continued strong focus on trade professionals, improved customer offer, enhanced ranges and leading price positioning in key categories

-     Core LFL sales improved in H2 (2.2)% vs H1 (5.1)% with building and joinery benefitting from increased investment in commercial campaigns. Big-ticket sales (1.2)% were supported by kitchen range reviews but impacted by market weakness, particularly in H2. Seasonal sales +1.1% had a strong H2, led by heating propellants and garden power tools

-     Trade sales grew +26%, driven by significant development of the trade proposition. Penetration reached 13.1%, up 290bps, supported by Brico Dépôt's efficient model offering competitive pricing and high in‑store availability for time‑pressed tradespeople. Brico Dépôt opened two Pro corners during the year, built out its trade focused range and increased investment in dedicated trade sales partners. Trade loyalty membership more than doubled. Brico Dépôt strengthened its price competitiveness with bulk‑buy pricing offers, driving volume growth in key products

-     E-commerce penetration reached 4.9%, with momentum from upgrades to our web presence

-     Space growth contributed +0.5% driven by the successful opening of the store transferred from Castorama, where sales increased by c.10% along with a selling space reduction of 20%. The second transferred store, in Le Havre, is expected to reopen in Q2 FY 26/27. Brico Dépôt France will also expand its partnership with Mr Bricolage, converting a Mr Bricolage store into a Brico Dépôt franchise in FY 26/27, in addition to the existing OEB supply arrangement. The three 1,000 sqm Brico Dépôt compact stores currently open continue to trade well ahead of the estate average

 

France Retail profit

-     Gross margin increased +60bps, reflecting the effective management of product costs and supplier negotiations, lower stock provisions driven by better inventory management and lower logistics costs from the reduction of c.10% of distribution centre space

-     Operating costs decreased (0.6)%, with increases in staff pay, social taxes and IT costs offset by savings from structural cost reductions, and the flexing of staff levels and discretionary spend

-     Retail profit increased +1.0% to £97m (FY 24/25: £95m, at reported rates). Retail profit margin increased by +10bps to 2.5% (FY 24/25: 2.4%) despite market decline of 3%

-     In 2024 we announced a plan to drive the next level of our performance and profitability in France. The plan targets a retail profit margin of c.5%-7% over the medium term, driven by a combination of self-help measures and operating leverage from an improved market environment. We are pleased with the delivery of our self-help measures. The French market has declined by c.10% since 2024, therefore the timing and trajectory of reaching our target is dependent on the pace of the market recovery

 

POLAND

£m	2025/26	2024/25	% Reported Change	% Constant Currency Change	% LFL Change
Total sales	1,843	1,788	+3.1%	-	(1.1)%
Retail profit	87	90	(3.5)%	(6.4)%
Retail profit margin %	4.7%	5.1%	(40)bps

 

Market

-     Market flat, with continued geopolitical uncertainty impacting the home improvement market

 

Poland

-     Total sales flat at £1,843m. LFL (1.1)% reflecting a challenging market backdrop with sales performance in line with the market (as measured by GfK)

-     LFL returned to growth in Q4, led by seasonal sales aided by colder weather. Core delivered sequential improvement in LFL in H2 (0.4)% vs H1 (2.5)% led by building & joinery, as OEB range reviews in interior doors delivered strong results. Full year big-ticket sales were (0.1)% with strong performance in kitchens driven by new ranges and targeted promotional activities, offset by softer performance in bathrooms. Installation services for kitchens and flooring are seeing increasing uptake

-     Trade sales growth of +46.6% with penetration reaching 27% (FY 24/25: 18%) as Castorama drove further rollout of CastoPro zones, recruited specialised trade sales partners and optimised its ranges for pro customers. 120 trade sales partners are now in role. The new loyalty programme which includes a cash-back feature saw 489k sign-ups and is successfully driving footfall into stores. In addition, CastoRent is offering tool rental for tradespeople

-     E-commerce sales increased +30% to £84m, benefiting from the launch of marketplace. A year into launch, Castorama's marketplace has recruited +350 vendors and reached 21% of e-commerce sales in January 2026

-     Space growth contributed +1.1% to total sales from one net store opening in the current year, following 5 in the prior year. The proven 4,000 sqm medium‑box format and the Smart compact store concept continue to expand our population reach and enable entry into new catchments. We are also piloting standalone Design Points in high‑traffic shopping malls, leveraging strong footfall to showcase our kitchen ranges, with orders fulfilled by nearby stores

 

Poland Retail profit

-     Gross margin increased by 20bps, reflecting the effective management of product costs and supplier negotiations, partially offset by higher promotional sales, as consumers continue to focus more of their spend around promotional events

-     Operating costs increased +1.7% with increases in staff pay and IT costs, partially offset by structural cost reductions and the flexing of staff levels and discretionary spend. IT costs include a one‑off c.£5m impairment charge related to the acceleration of next‑generation technology, which resulted in the write‑down of legacy systems. Excluding this charge, operating costs increase would have been +0.8%

-     Retail profit decreased by (6.4)% to £87m (FY 24/25: £90m). Retail profit margin decreased by (40) bps to 4.7%, at reported rates (FY 24/25: 5.1%). Excluding the impairment charge, retail profit margin would have been broadly flat

OTHER INTERNATIONAL

	2025/26	2024/25	% Reported Change	% Constant Currency Change	% LFL Change
Sales (£m)
Iberia	425	384	+10.6%	+8.8%	+8.8%
Screwfix France & Other±	25	16	+42.4%	+40.3%	n/a
Romania**	60	257	n/a	n/a	n/a
Other International	510	657	(22.5)%	(23.3)%	+8.0%
Other International (excl. Romania)	450	400	+12.0%	+10.1%	+9.3%

 

Retail profit (£m)
Iberia	15	8	+86.0%	+82.9%
Screwfix France & Other±	(31)	(35)	(9.5)%	(10.9)%
Turkey (50% JV)	(6)	(9)	n/a	n/a
Romania**	(3)	(11)	n/a	n/a
Other International	(25)	(47)	(46.0)%	(43.6)%
Other International (excl. Romania)	(22)	(36)	(37.9)%	(34.3)%

 

^± Screwfix France & Other consists of the consolidated results of Screwfix International, and results from franchise and wholesale agreements. The prior year comparator includes NeedHelp - we divested our c.80% equity interest on 18 July 2024.

**On 2 May 2025 the Group completed the divestment of its 100% equity interest in Brico Dépôt Romania. The Group recognised a £31m loss on disposal (included in adjusting items). Please see note 4 and 12 of the condensed financial statements in Section 4 for more details.

 

Iberia

-     Sales increased by +8.8% to £425m. LFL +8.8% driven by volume & transaction growth. Positive LFL across all categories. Continued strong focus on trade professionals, improved customer offer, enhanced ranges and leading price positioning in key categories. Growth was also supported by strong demand in Valencia following last year's flood damage

-     Market share gains in Spain (AECOC) driven by strong price positioning and effective commercial activation programmes

-     Trade sales growth +35.5% with penetration reaching 19.7% (FY 24/25: 15.8%) driven by the successful launch of the new loyalty programme BricoClub Pro and creation of trade zones in 6 stores

-     E-commerce marketplace continued to scale, reaching 30% of e-commerce online sales (FY 24/25: 25%). Brico Dépôt Spain has launched a hub network to fulfil e-commerce orders covering its entire estate. The transition to a digital‑hub fulfilment model led to a 10bps increase in digital conversion and improved gross margin driven by lower delivery costs and reduced stock shrinkage

-     Retail profit increased to £15m (FY 24/25: £8m), reflecting higher gross profit and strong cost control

 

Screwfix France & Other

-     Following first opening in Q4 2022, Screwfix France now has a total of 35 stores in operation, of which 5 stores were opened in the year. Store LFL sales grew +49%⁽³⁾, supported by the benefits of network effects and growing brand awareness in northern France, as successful marketing is driving increases in store traffic. Brand awareness in the North region reached 21% (+4pts). LFL growth continues to be higher in the more recently launched cohorts and strongest in areas with higher network effect. Trade penetration is at 54% (FY 24/25: 50%) with continued focus on enhancing the customer proposition through trade brands and trade-focused campaigns 

-     Franchise and wholesale agreements currently in place with seven partners that are buying selected Own Exclusive Brand (OEB) products, including Altex in Romania following their purchase of Brico Dépôt Romania. This has contributed c.£4m in retail profit for the current year   

-     Combined retail loss of £31m (FY 24/25: £35m)

 

Turkey

-     Total contribution to Group adjusted PBT was a net loss of £9m as demand remained constrained by high inflation and interest rates, though the environment improved over the year, with LFL sales returning positive for the full year

-     Please see note 4 of the condensed financial statements in Section 4 for more details

 

Romania

-     On 2 May 2025 the Group completed the divestment of its 100% equity interest in Brico Dépôt Romania for proceeds of £53m. The Group recognised a £31m loss on disposal (included in adjusting items)

-     Kingfisher continues to supply OEB products into Romania through our wholesale partnership with Altex

-     Please see note 4 and 12 of the condensed financial statements in Section 4 for more details

 

LFL sales by category

 

Q4

% LFL Change   Core 'Big-ticket' Seasonal Q4 25/26 UK & Ireland +2.7% +2.2% (1.8)% +2.2% - B&Q +1.4% +1.9% (1.5)% +1.1% - Screwfix +4.0% +3.1% (2.5)% +3.5% France (1.7)% (3.9)% (1.5)% (2.2)% - Castorama (1.1)% (5.4)% (4.8)% (2.6)% - Brico Dépôt (2.3)% (2.7)% +3.1% (1.7)% Poland +0.4% (0.8)% +10.9% +1.4% Other International* +5.3% +1.0% +14.7% +5.3% - Iberia +4.5% +0.2% +14.7% +4.7% Group LFL +1.3% (0.9)% +0.7% +0.9% Excluding calendar impact +1.0% (1.2)% +0.4% +0.6%

*Includes Screwfix France and other

 

FY

% LFL Change   Core 'Big-ticket' Seasonal FY 25/26 UK & Ireland +2.4% +5.0% +6.1% +3.3% - B&Q +1.6% +6.2% +6.5% +3.3% - Screwfix +3.2% +2.4% +4.4% +3.2% France (2.8)% (2.7)% (0.1)% (2.2)% - Castorama (1.9)% (4.5)% (0.9)% (2.2)% - Brico Dépôt (3.7)% (1.2)% +1.1% (2.3)% Poland (1.5)% (0.1)% (0.8)% (1.1)% Other International* +9.2% +6.3% +5.7% +8.0% - Iberia +10.5% +5.4% +6.8% +8.8% - Romania (4.1)% +8.7% +1.6% n/a Group LFL +0.6% +1.1% +2.8% +1.1% Excluding calendar impact +0.9% +1.4% +3.1% +1.4%

*Includes Screwfix France and other

 

Core (67% of sales): UK performance remained solid, led by strong interior paint sales at B&Q and sustained growth in tools at Screwfix. Iberia reported strong growth across all categories, whereas trading in France and Poland was comparatively softer.

 

Big-ticket (15% of sales): Growth was led by kitchen category sales, particularly at B&Q, supported by recent range reviews and soft prior-year comparators, with Brico Dépôt France and Poland also delivering solid performance. Softer performance in Bathrooms with range reviews planned for FY 26/27.

 

Seasonal (18% of sales): Performance was led by the UK, supported by favourable weather in Q1 with LFL +28%, driven by outdoor and garden categories. In Poland unfavourable H1 weather was partly offset by beneficial weather in Q4.

 

Footnotes to trading review by division:

⁽¹⁾ Marketplace GMV is the total transaction value (including VAT) from the sale of products supplied by third-party e-commerce marketplace vendors. What is recorded in revenue is the commission take rate which is c.10-15% of GMV.

⁽²⁾ Marketplace retail contribution includes only directly attributable run costs.

⁽³⁾ Store LFL sales excludes online sales (Screwfix France launched as an online-only proposition in April 2021, with the first store opening in October 2022).

 

 

A summary of the reported financial results for the twelve months ended 31 January 2026 is set out below. To be read in conjunction with the condensed financial statements included in Section 4 of this announcement.

 

Note: all commentary below is in constant currency, unless stated otherwise

 

Financial summary % Total Change % Total Change 2025/26 2024/25 Reported Constant currency Sales £12,945m £12,784m +1.3% +0.2% Gross profit* £4,930m £4,763m +3.5% +2.5% Gross margin % 38.1% 37.3% +80bps +80bps Operating profit £469m £407m +15.2% Statutory pre-tax profit (PBT) £378m £307m +23.0% Statutory post-tax profit £245m £185m +32.7% Statutory basic EPS 14.0p 10.1p +39.5% Net cash flows from operating activities £1,433m £1,302m +10.1% Total dividend per share 12.40p 12.40p - Adjusted metrics LFL sales +1.1% Retail profit £734m £696m +5.4% +4.4% Retail profit margin % 5.7% 5.4% +30bps Adjusted pre-tax profit (PBT) £560m £528m +6.0% Adjusted pre-tax profit margin %* 4.3% 4.1% +20bps Adjusted post-tax profit* £416m £381m +9.2% Adjusted basic EPS 23.8p 20.7p +14.9% Free cash flow £512m £511m +0.1% Net leverage(1) 1.4x 1.6x

 

⁽¹⁾ Refers to net debt to Adjusted EBITDA. Net debt includes £2,238m (FY 24/25: £2,253m) of total lease liabilities, including nil of lease liabilities held for sale (FY 24/25: £42m).

 

Total sales increased by +0.2%, to £12,945m. Excluding Romania the Group's total sales increased by +1.8%. UK & Ireland and Iberia achieved sales growth ahead of their markets. France declined against a subdued consumer backdrop but outperformed the market. Poland sales were flat and in line with the market. On a reported basis, which includes the impact of exchange rates, total sales increased by +1.3%.

 

LFL sales of +1.1% excludes a (1.6)% impact from the disposal of Romania and a +0.7% contribution from net space growth. Underlying LFL sales performance (excluding calendar and leap year impacts) was +1.4%.

 

Space growth was driven by the conversion of acquired Homebase stores at B&Q, new Screwfix openings in the UK and France, and expansion at Castorama Poland. 41 net stores were opened during the year.

Please see section 1 "Grow our banners and formats" for more details.

 

A reconciliation from LFL sales to total sales is set out below:

	2025/26 £m	2024/25 £m	Increase/ (decrease)
LFL sales (constant currency)	12,749	12,609	+1.1%
Non-LFL sales	196	307	n/a
Total sales (constant currency)	12,945	12,916	+0.2%
Impact of exchange rates	-	(132)	n/a
Total sales (reported rates)	12,945	12,784	+1.3%

 

Gross margin % increased +80 basis points to 38.1%, mainly from Kingfisher's buying and sourcing scale, growth from marketplace and retail media, AI driven promotional effectiveness, improved inventory management and clearance activity, banner mix, the disposal of Romania and FX tailwinds. Group gross profit was up by +2.5%.

 

Operating costs increased by 2.1%. Excluding prior year business rates refunds at B&Q, operating costs increased by 1.3%, driven primarily by new store openings, higher staff pay rates, higher variable compensation, and increased employer national insurance contributions in the UK, as well as similar taxes in France. These increases were partly offset by structural savings delivered through our cost‑reduction programme, alongside targeted actions in France and Poland to flex staffing levels and discretionary spend.

 

Retail profit increased by 4.4% to £734m, reflecting higher profits in the UK and Iberia despite the prior year benefitting from £33m business rates refunds in B&Q. On a reported basis, retail profit increased by 5.4%. The Group's retail profit margin increased by 30 basis points to 5.7%, at reported rates (FY 24/25: 5.4%).

 

Adjusted pre-tax profit increased by +6% to £560m on a reported rate basis (FY 24/25: £528m), reflecting higher retail profit and lower net finance costs, partially offset by higher central costs. Adjusted pre-tax profit margin was up by 20bps to 4.3% (FY 24/25: 4.1%).

 

Statutory pre-tax profit increased by +23.0% to £378m (FY 24/25: £307m). This reflects higher operating profit and lower adjusting items YoY (see adjusting items below).

A reconciliation from the adjusted basis to the statutory basis for pre-tax profit is set out below:

 

	2025/26 £m	2024/25 £m	Increase/ (decrease)
Retail profit (constant currency)	734	703	+4.4%
Impact of exchange rates	-	(7)	n/a
Retail profit (reported)	734	696	+5.4%
Central costs	(80)	(62)	+28.9%
Share of interest and tax of joint ventures & associates	(3)	(6)	n/a
Net finance costs	(91)	(100)	(9.2)%
Adjusted pre-tax profit	560	528	+6.0%
Adjusting items before tax	(182)	(221)	n/a
Statutory pre-tax profit	378	307	+23.0%

 

Net finance costs of £91m (FY 24/25: £100m) consist principally of interest on lease liabilities.

 

Adjusting items before tax were a total charge of £182m (FY 24/25: charge of £221m), driven by the Goodwill impairment in Castorama France, store impairment charges, the disposal of Romania, along with operating model restructuring costs.

 

The charges also include a £19m impairment of the Group's joint venture, Koçtaş, reflecting the continued challenging trading environment and ongoing macro‑economic uncertainty in Turkey. Following this impairment, the carrying amount of the investment has been reduced to nil. Please see note 4 in the condensed financial statements included in Section 4.

 

Taxation

The Group's adjusted effective tax rate (ETR) is sensitive to the blend of tax rates and profits in the Group's various jurisdictions. It is higher than the UK statutory rate because of the amount of Group profit that is earned in higher tax jurisdictions, and because no future benefit is assumed for losses incurred in certain overseas territories. The adjusted ETR, calculated on profit before adjusting items, prior year tax adjustments, one-off items, and the impact of future rate changes, is 26% (FY 24/25: 28%). The adjusted ETR is lower than the prior year rate primarily due to lower losses recorded in territories in which tax credits are not recognised, and limited losses recorded in Brico Dépôt Romania following the Group's divestment of the business on 2 May 2025.

 

The statutory effective tax rate includes the impact of adjusting items (including prior year tax items). The impact of these result in a statutory effective tax rate of 35%.

 

	Pre-tax profit £m	Tax £m	2025/26 %	Pre-tax profit £m	Tax £m	2024/25 %
Adjusted effective tax rate	560	(144)	26%	528	(147)	28%
Adjusting items	(182)	11		(221)	25
Statutory effective tax rate	378	(133)	35%	307	(122)	40%

 

In FY 21/22, Kingfisher paid £64m (including interest) to HM Revenue & Customs (HMRC) in relation to the European Commission's 2019 state aid decision concerning the UK's controlled foreign company tax rules. In September 2024, the European Court of Justice annulled this decision, and, in March 2025, HMRC repaid the tax and interest previously assessed, plus a £5m payment of interest (interest payment included in free cashflow). This has been reflected in "other tax authority receipt" in the cashflow statement and does not form part of free cash flow.

 

Adjusted basic earnings per share increased by 14.9% to 23.8p (FY 24/25: 20.7p), which excludes the impact of adjusting items. Basic earnings per share increased by 39.5% to 14.0p (FY 24/25: 10.1p). Please refer to note 7 of the condensed financial statements in Section 4 for more detail.

 

Management of balance sheet and liquidity risk and financing

Management of cash and debt facilities

Kingfisher regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayment or refinancing of debt, and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows and/or impacts to cash inflows. To retain financial flexibility, we aim to maintain strong liquidity headroom (including cash and cash equivalents, short term deposits and committed debt facilities), which is currently set at a minimum of £800m.

 

Net debt to adjusted EBITDA

As of 31 January 2026, the Group had £1,878m (FY 24/25: £2,015m) of net debt on its balance sheet. Net debt includes £2,238m (FY 24/25: £2,253m) of total lease liabilities, including nil of lease liabilities held for sale (FY 24/25: £42m). The ratio of the Group's net debt to adjusted EBITDA was 1.4 times as of 31 January 2026 (1.6 times as of 31 January 2025). At this level, the Group has financial flexibility while retaining an efficient cost of capital. The Group's target maximum net debt to adjusted EBITDA is c.2.0 times over the medium term. Please refer to 'Key strategic priorities and medium-term financial and capital allocation priorities' in Section 4 for further details.

Refer to 'Key strategic priorities and medium-term financial and capital allocation priorities' in Section 1.

Net debt to adjusted EBITDA is set out below:

	2025/26 £m	2024/25 £m
Retail profit	734	696
Central costs	(80)	(62)
Depreciation and amortisation	667	656
Adjusted EBITDA	1,321	1,290
Net debt	1,878	2,015
Net debt to adjusted EBITDA	1.4	1.6

 

Credit ratings

Kingfisher holds a BBB credit rating with Fitch and a BBB rating with Standard and Poor's. The outlook is Stable across both agencies.

 

Revolving credit facility

In May 2024 the Group entered into a new £650m Revolving Credit Facility (RCF) agreement with a group of its relationship banks, linked to sustainability targets. In May 2025 the credit facility was extended by one year and now expires in May 2028. As of 31 January 2026, this RCF was undrawn.

 

Term loans

The Group's two term loans were refinanced in H1 25/26 with £50m now maturing in June 2027 and £50m in January 2028, with the latter linked to the Group's sustainability targets.

 

Covenants

The terms of the committed RCF and both term loans require that the ratio of Group operating profit (excluding adjusting items) to net interest payable (excluding interest on IFRS 16 lease liabilities) must be no less than 3:1 for the preceding 12 months as at the half and full year-ends. As of 31 January 2026, Kingfisher was compliant with this requirement.

 

Total liquidity

As of 31 January 2026, the Group had access to over £1.1bn in total liquidity, including cash and cash equivalents of £462m (net of bank overdrafts), and access to a £650m RCF.

 

Free cash flow

A reconciliation of free cash flow is set out below:

	2025/26 £m	2024/25 £m
Operating profit	469	407
Adjusting items	182	221
Operating profit (before adjusting items)	651	628
Other non-cash items(1)	728	703
Change in working capital	74	108
Pensions and provisions	(5)	(5)
Net rent paid	(508)	(512)
Net interest received	23	15
Tax paid	(63)	(109)
Gross capital expenditure	(388)	(317)
Free cash flow	512	511
Ordinary dividends paid	(218)	(228)
Share buybacks	(256)	(225)
Share purchase for employee incentive schemes	(25)	(26)
Disposal of NeedHelp	-	(3)
Disposal of Romania	33	-
Other tax authority receipt(2)	64	-
Investment in joint venture	-	(19)
Disposal of assets and other(3)	(3)	(19)
Net cash flow*	107	(9)
Opening net debt	(2,015)	(2,116)
Lease liabilities disposed	38	-
Movements in lease liabilities	(1)	107
Other movement including foreign exchange	(7)	3
Closing net debt	(1,878)	(2,015)

 

⁽¹⁾ Includes depreciation and amortisation, share-based compensation charge and pension operating cost.

⁽²⁾ Refund received in relation to the EC state aid challenge (refer to Taxation section above for further details).

⁽³⁾ Includes adjusting cash flow items (principally comprising restructuring costs), partially offset by proceeds from the issue of new shares and the disposal of assets.

 

Operating profit (before adjusting items) was £23m higher than last year, reflecting higher retail profit partially offset by higher central costs. The working capital inflow of £74m was largely driven by an increase in payables of £91m.  This increase reflects higher purchasing to replenish availability following stronger LFL sales and higher deferred income. Inventory ending the year broadly flat (up £1m) as higher volumes including store expansion were offset by a five day reduction in stock days. Receivables increased by £16m, driven in part by increase in trade credit sales and prepayments related to tech contracts.

 

Net tax paid was £46m lower than last year, predominantly reflecting receipts of refunds relating to settlements of prior years.

 

Gross capital expenditure up £71m (+22%) to £388m, with increase driven by freehold acquisition, technology investment and spend in existing stores. 32% of capex was invested in growth (new stores, new tech and range reviews), 42% in store and tech maintenance, and 25% in other areas, including supply chain investment and the B&Q freehold acquisition.

Overall, free cash flow was £512m. Net debt as of 31 January 2026 (including lease liabilities) was £1,878m (FY 24/25: £2,015m).

 

A reconciliation of net cash flows from operating activities to free cash flow and net cash flow, and to the statutory net movement in cash and cash equivalents and bank overdrafts, is set out below:

 

		2025/26 £m	2024/25 £m
Net cash flows from operating activities	1,433		1,302
Net lease rent paid	(508)		(512)
Net interest received	23		15
Gross capital expenditure	(388)		(317)
Other tax authority receipt(1)	(64)		-
Operating cash flows relating to adjusting items(2)	16		23
Free cash flow		512	511
Ordinary dividends paid		(218)	(228)
Share buybacks		(256)	(225)
Share purchase for employee incentive schemes		(25)	(26)
Other tax authority receipt(1)		64	-
Investment in joint venture		-	(19)
Disposal of Romania		33	-
Disposal of NeedHelp		-	(3)
Disposal of assets and other(3)		(3)	(19)
Net cash flow		107	(9)
Arrangement fees paid		(1)	(2)
Net increase in cash and cash equivalents and bank overdrafts		106	(11)

 

⁽¹⁾ Refund received in relation to the EC state aid challenge (refer to Taxation section above for further details).

⁽²⁾ Includes cash flows relating to adjusting items, principally comprising restructuring costs.

⁽³⁾ Includes adjusting cash flow items (principally comprising restructuring costs), partially offset by proceeds from the issue of new shares and the disposal of assets.

 

Pensions

As at 31 January 2026, the Group had a net defined benefit pension asset of £83m (2025: £101m), comprising a £181m surplus in the UK scheme and an overseas net deficit of £98m. The reduction in the net surplus primarily reflects asset losses partially offset by reduced liabilities due to a higher discount rate for the UK scheme. In accordance with the scheme's Statement of Funding Principles, the Trustee and Kingfisher agreed to cease annual employer contributions for the period from August 2022 to July 2025, and subsequently for the period from August 2025 to July 2028. A full actuarial valuation of the UK scheme is carried out every three years, with the latest completed at 31 March 2022 and the 2025 valuation ongoing. Please refer to note 9 of the condensed financial statements in Section 4.

 

Return on capital employed (ROCE*)

In FY 25/26, Kingfisher's post-tax ROCE was 8.2% (FY 24/25: 7.4%). The increase was primarily driven by higher profits in UK & Ireland. Kingfisher's weighted average cost of capital (WACC) was 8.4% (FY 24/25: 8.8%). ROCE by geographic division is analysed below:

 

	Sales £bn	Proportion of Group sales	Capital employed (CE) £bn	Proportion of Group CE	ROCE 2025/26	ROCE 2024/25
UK & Ireland	6.7	52.0%	2.8	46.8%	15.5%	14.9%
France	3.9	29.9%	1.6	27.7%	4.4%	4.3%
Poland	1.8	14.2%	1.2	19.4%	6.1%	6.4%
Other International	0.5	3.9%	0.2	3.9%	n/a	n/a
Central			0.1	2.1%	n/a	n/a
Total	12.9		5.9		8.2%	7.4%

 

Property

Kingfisher owns a significant property portfolio, the majority of which is used for trading purposes. A formal valuation of the portfolio was undertaken by external professional valuers in October 2025. Based on this exercise, on a sale and leaseback basis with Kingfisher in occupancy, the value of the property portfolio was £2.8bn (FY 24/25: £2.7bn). This is compared to a net book value of £2.2bn (FY 24/25: £2.2bn) recorded in the financial statements (including investment property and property included within assets held for sale). Balance sheet values were frozen as of 1 February 2004, on transition to IFRS.

 

	2025/26 £bn	2025/26 Yields	2024/25 £bn	2024/25 Yields
France	1.3	8.3%	1.3	8.4%
UK	0.6	7.5%	0.5	7.5%
Poland	0.8	8.6%	0.7	8.3%
Other	0.1	n/a	0.2	n/a
Total	2.8		2.7

 

Risks

The Group's principal risks and uncertainties have been reviewed as part of our full year procedures. We have introduced a new technology resilience risk to reflect the importance of developing and maintaining resilient systems. We have also merged risks relating to changing customer expectations and competitor behaviour into a single market landscape risk.  

 

Further details of the Group risks and risk management process can be found in the FY 25/26 Annual Report and Accounts.

 

 

 

Kingfisher plc

2025/26 Condensed Financial Statements

 

Consolidated income statement

Year ended 31 January 2026

 

				2025/26			2024/25
£ millions	Notes	Before adjusting items	Adjusting items (note 4)	Total	Before adjusting items	Adjusting items (note 4)	Total
Sales	3	12,945	-	12,945	12,784	-	12,784
Cost of sales		(8,015)	-	(8,015)	(8,021)	-	(8,021)
Gross profit		4,930	-	4,930	4,763	-	4,763
Selling and distribution expenses		(3,212)	(61)	(3,273)	(3,122)	(99)	(3,221)
Administrative expenses		(1,082)	(73)	(1,155)	(1,018)	(97)	(1,115)
Other income		24	2	26	20	-	20
Other expenses		-	(31)	(31)	-	(25)	(25)
Share of results from equity accounted investments		(9)	(19)	(28)	(15)	-	(15)
Operating profit	3	651	(182)	469	628	(221)	407
Finance costs		(124)	-	(124)	(132)	-	(132)
Finance income		33	-	33	32	-	32
Net finance costs	5	(91)	-	(91)	(100)	-	(100)
Profit before taxation		560	(182)	378	528	(221)	307
Income tax expense	6	(144)	11	(133)	(147)	25	(122)
Profit for the year		416	(171)	245	381	(196)	185
Earnings per share	7
Basic				14.0p			10.1p
Diluted				13.8p			9.9p
Adjusted basic				23.8p			20.7p
Adjusted diluted				23.4p			20.4p

 

The proposed dividend for the year ended 31 January 2026, subject to approval by shareholders at the Annual General Meeting, is 12.40p per share, comprising an interim dividend of 3.80p in respect of the six months ended 31 July 2025 and a final dividend of 8.60p.