Completion of the acquisition of DIY Kitchens

Research evidence excerpt

Completion of the acquisition of DIY Kitchens

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Howden Joinery 24 June 2026

Company Update

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 22 Jun 2026 (GBP) 814.00

HWDN.L HWDN LN LSE HWDN

Price Target (GBP) 1,210.00

Building & Construction

Building Materials ADR ISIN 52-week range (GBP) 970.00723.50-

HWDJY US4428791028

Completion of the acquisition of DIY

Valuation & Risks Kitchens

Christen Hjorth

Following the completed acquisition of DIY Kitchens, we increase our EPS

Research Analyst

estimates by c.2-3% across the forecast horizon. For 2027, the first full year of +44-20-754-11567

ownership, our forecast reflects mid-single-digit percentage earnings accretion,

which is partially offset by slightly more cautious organic assumptions. Our 2026 Jonathan Coubrough

organic estimates remain unchanged. Howden trades on what we view as an

+44-20-754-54671

attractive FY27 P/E ratio of c.15x (vs. its 10-year average of c.16x) with a c.3%

yield. We reiterate our Buy rating. Chris Millington

+44-20-7541-1570 n The acquisition. DIY Kitchens is a high growth vertically integrated kitchen

business that exclusively sells its products online. Customers are

principally consumers that self-manage and design their own kitchen Price/price relative

installation. Its online channel provides self-service planning, design and 1000

ordering tools, and its model combines low selling overheads with made-

to-order manufacturing and strong cash generation. The business operates 750

two large destination showrooms, with a third under construction.

n Rationale. DIY Kitchens operates a proven model that represents a 2024 2025 2026

distinctly different proposition to Howden's trade-only, full-service model.