DAVY VIEW

Howdens’ full year results are typically solid, especially considering the operating backdrop remained challenging. Once again, Howdens’ underlying level of cash generation excelled and this has prompted a further £100m share buyback. Outlook comments suggest there is likely to be little change to 2026 headline estimates at this juncture. For some time, we have believed Howdens’ rating and the general flatlining in profits (which should be temporary) represents a barrier to share price progression. Our instinct is that this should remain the case for a while longer.