Trade and online attractions; cash rewards

Kingfisher reported FY26 results in line with upgraded guidance, demonstrating continued progress across its strategic priorities and supporting our expectations for further profit and cash generation growth despite a mixed macro‑economic backdrop.

Key financial metrics were robust. Group revenue increased 1.3% to £12.9bn, while adjusted PBT rose 6% to £560m, reflecting gross margin expansion and disciplined cost control. Adjusted EPS increased 15% to 23.4p, and free cash flow reached £512m, supporting a further £300m share buy‑back.

Kingfisher’s strategy continues to deliver. Growing penetration of trade customers, expansion of marketplace and e‑commerce, and a high contribution from exclusive brands underpin margin resilience and provide flexibility to manage cost pressures while continuing to invest for growth.

Valuation remains attractive. Following recent share price weakness, Kingfisher trades on 9.3x cal 2027 PER, with a c.9% free‑cash‑flow yield, which we believe does not fully reflect the group’s cash‑generation capability. Accordingly, we raise our fair value to 375p per share.