Headline Results Beat Expectations Kingfisher has reported H126 results (Jan year-end) reporting Adjusted PBT of £368m, versus our forecast of £317m and consensus of £327m. Group lfl sales in Q2 came in at +0.9% versus our forecast of -1.9% and consensus of -0.4% (Q1 was +1.8%). Geographically management noted strong UK performance across both B&Q and Screwfix with LFL +4.4% and 3.0% respectively with improving sequential trends in France and Poland. Looking forward, management expect markets for the year remain consistent with its expectations back in March, whilst they are mindful of mixed consumer sentiment and political uncertainty. Ultimately the Group are upgrading guidance for FY Adjusted PBT to the "upper end" of prior guided range (£480-£540m), versus consensus currently of £519m and our forecast of £502m. Expectations for free cash flow increase from c.£480m to £520m (previously £420m to £480m). The Group also note the ongoing £300m share buyback programme is to be accelerated, completing by March 2026. Divisional Performance Solid sales performance supported market share gains in the UK, France and Spain, whilst Poland performed broadly in line with the market. In terms of the divisional detail: i) LFL sales in the UK and Ireland came in at +3.9% driven by a strong performance from B&Q (+4.4%) and another positive performance in Screwfix (+3.0%). Within B&Q, TradePoint continues the perform well with lfl sales up 6.9%; ii) France was more challenging with lfl sales down -2.1% with both Castorama (-1.4%) and Brico Depot (-2.9%) under pressure from subdued consumer sentiment ; iii) Lfl sales in Poland came in at -2.1% with the Group noting that it saw signs of recovery with falling inflation, real wage growth, interest rate cuts and improvement in consumer confidence. We expect to increase our FY26 adjusted PBT forecast to £510m from £502m. Upgraded Guidance and Positive Outlook Overall, this is a strong performance from Kingfisher. Although the environment remains challenging, strong UK sales and improving trends in Europe are encouraging. The Group have managed gross margins well, increasing by 100bps during the period. We expect to increase our FY25 PBT forecast from £502m to c.£510m, primarily reflecting the better than expected H1 profitability performance driven by volume growth and gross margin improvement.