Howdens: Cracking the B2C market without alienating the trade

研报英文原文证据摘录

Howdens: Cracking the B2C market without alienating the trade

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Howdens

Cracking the B2C market without

alienating the trade

Reiterate Rating: BUY | PO: 1,000 GBp | Price: 779.00 GBp

Expanding into online non-trade market 04 June 2026

Howdens is tapping into non-trade customer base by agreeing to acquire DIY Kitchens Equity

for an enterprise value of £390m (9% of Howdens’), which represents an EV/EBITDA at

c.8.5x (vs Howdens at c.8x). DIY Kitchens is operating online (with two show rooms

Key Changescurrently) and targeting non-trade customers directly with made-to-order manufacturing.

The business is highly vertically intergrade with 40% of COGS self-manufactured. DIY (GBp) Previous Current

Kitchens was running at an impressive 27% EBIT margin as of 2025 thanks to its low Price Obj. 970.00 1,000.00

overheads (minimal design/installing service). Most players in the UK kitchen field have a 2027E Rev (£m) 2,700.2 2,859.8

margin ranging from MSD to mid-teens. The transaction will be funded by c.75% cash 2028E Rev (£m) 2,874.6 3,044.0

and 25% in shares. Howdens will remain in a net cash position post the deal, and there is 2027E EPS 54.73 57.92

no disruption on capital return schedule. Meanwhile Howdens confirms FY outlook. We 2028E EPS 61.31 63.65

believe it is a sensible move for Howdens to capture structurally unaddressed market

share without risking the integrity of its core business model given dual-brand strategy. Allison Sun >>

Research Analyst

Earnings accretive immediately, cost saving possible MLI+44 (UK)20 7996 1052

Howdens expects DIY Kitchens’ revenue growth to sustain at c.17% in the coming years allison.sun@bofa.com

(from a small base) and EBIT margin at mid-20%. On this basis, we see a 55bps EBIT Arnaud Lehmann >>