Kingfisher plc stock surges on strong FY 25/ 26 results, new share buyback and upbeat guidance

Kingfisher plc (ISIN: GB0033195214) posted robust FY 25/26 final results with adjusted profit before tax up 12.1% to £590m, free cash flow of £512m, and announced a full-year dividend of 12.40p plus a new £300m share buyback. UK brands B&Q and Screwfix drove like-for-like sales growth amid home improvement market recovery, signaling resilience for US investors eyeing European retail exposure.

Kingfisher plc, the British multinational home improvement retailer behind B&Q, Screwfix, and Castorama, released its FY 25/26 final results on March 24, 2026, showing adjusted profit before tax rose 12.1% to £590m on total sales of £11.8 billion. The **Kingfisher plc stock** reacted positively to the beat on expectations, highlighting strong UK performance and strategic progress in digital and trade channels. For US investors, this underscores a compelling play on European consumer recovery without direct US market exposure.

As of: 24.03.2026

Emma Hargrove, Senior Retail Analyst: Kingfisher's results reflect disciplined execution in a cyclical sector, positioning the group for sustained margin expansion amid moderating inflation and housing market stabilization.

Robust FY 25/26 Results Drive Market Optimism

Kingfisher reported group total sales up 1.5% to £11.8 billion, with like-for-like sales growth of 0.7%. Adjusted profit before tax climbed to £590m from £526m prior year, beating consensus forecasts. This performance was underpinned by retail profit margin holding steady at 8.5%, despite a slight 10 basis point dip.

UK operations led the charge, with B&Q like-for-like sales up 3.3% and Screwfix up 3.2%, capturing market share amid a flat-to-declining broader home improvement sector. Market data from GfK, BRC, and Barclays confirmed Kingfisher's outperformance, driven by big-ticket innovation and transference from competitor Homebase closures.

France showed mixed results, with Castorama sales down but Brico Dépôt up, while Poland delivered 46.6% LFL growth at constant currency. Adjusted earnings per share rose 15% to 23.8p, supported by ongoing share buybacks that reduced the share count.

Strong Cash Generation and Shareholder Returns

Free cash flow hit £512m, bolstered by five days of inventory improvement through better supplier collaboration and data sharing with 150 key vendors. This represented a solid conversion of profits into cash, with net debt to adjusted EBITDA at a manageable level including lease liabilities of £2,238m.

Kingfisher completed a £300m share buyback programme and announced a full-year dividend of 12.40p per share, subject to approval at the June 26, 2026 AGM. The board immediately launched another £300m buyback, bringing total returns since September 2021 to £1.2 billion, aligning with its capital allocation policy targeting minimum liquidity of £800m.

Liquidity remains strong at over £1.1 billion, including £462m cash and a £650m revolving credit facility, providing a buffer against retail sector volatility.

Strategic Progress in Digital and Marketplace Expansion

Marketplaces scaled significantly, with group GMV up 58% to £518m. B&Q marketplace reached 3.7m SKUs, GMV +44% to £445m, delivering £15m retail profit contribution. Castorama France and Iberia marketplaces hit breakeven after two years.

App sales penetration reached 29% of e-commerce in banners with apps, while AI-driven content generation tools are in testing. Trade channel expansion included 224 B&Q stores with trade partners, up from 217, and direct-to-site offerings for pros.

Store network grew to 1,691 outlets, with 41 net openings including Screwfix's 27 additions. Planned FY 26/27 openings total 27, focusing on high-return formats like Screwfix and Brico Dépôt.

Confident FY 26/27 Guidance Signals Momentum

Management guided adjusted PBT to £565m-£625m and free cash flow to £450m-£510m, assuming current FX rates. Capex set at circa £400m, with net finance costs around £105m and tax rate at 26%.

Non-recurring losses of £13m from Romania disposal and Turkey impairment will not repeat, boosting comparability. This outlook reflects confidence in UK strength, Polish growth, and cost discipline across the group.

Why US Investors Should Watch Kingfisher Now

For US investors, Kingfisher offers diversified exposure to Europe's home improvement cycle, mirroring dynamics in the US with Home Depot and Lowe's but at potentially attractive valuations. The group's focus on trade pros and digital aligns with US trends, where pros drive resilient demand amid housing slowdowns.

Shareholder returns via dividends and buybacks appeal to income-focused portfolios, with GBP exposure hedging against USD strength. As US housing data softens, Kingfisher's UK and Polish outperformance provides a counterbalance to domestic retail risks.

Key Risks and Open Questions Ahead

France remains a drag, with Castorama facing competitive pressures and potential store rationalization. Broader retail risks include housing market weakness, inflation pass-through limits, and FX volatility impacting guidance.

Execution on store openings, marketplace scaling, and inventory optimization carries operational risks. Macro uncertainties in Europe, including energy costs and consumer spending, could pressure margins if market recovery stalls.

Geopolitical factors and supply chain disruptions pose ongoing threats, though Kingfisher's vendor collaboration mitigates some inventory risks. Investors should monitor Q1 trading updates for confirmation of guidance trajectory.

Disclaimer: This is not investment advice. Stocks are volatile financial instruments.