Kingfisher PLC Reports 9.9% Rise in Adjusted Profit, Upgrades Guidance

Kingfisher PLC delivered a 9.9% year-over-year increase in adjusted pre-tax profit, reaching £404 million for the six months ending July 31, 2026. The results, detailed in a half-year financial report, show momentum across key areas of the business, prompting the company to upgrade its full-year guidance.

Underlying like-for-like (LFL) sales saw a modest increase of 0.3%, while total sales, including marketplace gross merchandise sales (GMS), rose 1.6%. Screwfix continued to be a standout performer, driving growth with a LFL increase of 5.6%. The marketplace GMV grew significantly, up 42% to £372 million, contributing a profit of £13.4 million, a substantial increase from £7 million in the same period last year. Gross margin expanded by 70 basis points to 38.4%, supported by the company’s sourcing scale, marketplace gains, and favorable foreign exchange effects, partially offset by increased freight costs and a shift in sales mix.

Alongside profit growth, Kingfisher demonstrated strong cash generation, delivering £339 million in free cash flow. This enabled the company to announce an interim dividend of 3.8p per share and continue its share buyback program, having repurchased £125 million worth of shares to date. The board has authorized a further £50 million tranche of the £300 million program. Retail profit increased 8.2% to £489 million, and the retail profit margin expanded by 50 basis points to 7.1%.

Looking ahead, Kingfisher now anticipates adjusted pre-tax profit for the full fiscal year to fall between £595 million and £635 million, an increase from previous guidance of £565 million to £625 million. Free cash flow is also expected to be higher, in the range of £480 million to £520 million, up from £450 million to £510 million. The results indicate a strengthening financial position for Kingfisher, driven by strategic initiatives and tight cost control, despite a mixed consumer environment. The company's ability to expand margins and generate cash flow while navigating macroeconomic headwinds positions it favorably within the competitive home improvement retail sector.