1H26 results due on Thursday 23 July

Research evidence excerpt

1H26 results due on Thursday 23 July

be "on track" with the FY26 outlook, suggesting limited changes to consensus at % change 3.0% 10.2% 10.6%

the time (FY26 PBT c.£358m underpinned by c.2% volume growth and c.2% price inflation EBIT 388 428 459

this year). While consensus is likely to optically move up as the acquisition of DIY Kitchens % change 5.1% 10.8% 11.2%

in integrated, investors will be sensitive to whether forecasts in the underlying business face EBIT margin 15.0% 14.8% 14.9%

Previous 14.7% 14.7% 14.8%

downward pressure due to a weaker market or rising cost pressures (as of late-April, Howdens PBT 363 396 428

had yet to see a material step-up in costs but stood ready to counter this via internal cost % change 2.8% 6.7% 7.3%

actions and price increases if needed). EPS (GBp) 51.7 56.4 60.8

% change 1.6% 4.2% 4.8%

Underlying JEFe unchanged but DIY Kitchens drives upgrades; headroom for further DPS (GBp) 21.9 22.6 24.3

buybacks remains intact. With the acquisition of DIY Kitchens completed last week (original % change 0.0% 3.1% 4.8%

guidance of 3Q26), we have now integrated the deal into our model from 2H26 with no changes . Net debt/EBITDA*, x 0.7x 0.3x -0.1x

Source: Jefferies estimates. *Post-IFRS 16.

to underlying JEFe. This has driven c.4-5% accretion to EPS from next year which is below JEFe has moved up to reflect integration of

our original estimate of high single-digits given more clarity on interest costs (c.£14m extra DIY Kitchens with no changes to underlying

on top of slightly lower interest received). Given the ongoing difficult backdrop, we also carry forecasts.

more conservative growth assumptions for DIY Kitchens than we would have done a few

weeks ago (i.e. low teen sales growth pa). However, with DIY Kitchens generating a mid-20's