Strategy driving profit upgrades despite soft markets

Kingfisher’s 3Q26 sales growth of 1.0%, including LFL +0.9%, was better than expected and driven by market share gains in UK. In addition, the group’s investments in e-commerce and trade continued to deliver double digit growth across the group as self-help actions helped offset soft markets, particularly in France and Poland.

Building on the strong profit performance in H126, management has upgraded FY26E Adj. PBT guidance again, to £540m-£570m. We raise our FY26E by 3.3% to £555m and maintain our FY27E Adj. PBT of c.£596m.

Although Kingfisher’s share price rallied 6% yesterday, we see scope for a further re-rating towards our 365p Fair Value, equivalent to c.14x cal 2026 PER and a c. 3.5% dividend yield.