WH Smith (SMWH) H2 2025 earnings summary

Executive summary

• Completed a strategic reset, divesting non-core businesses to become a pure-play travel retailer focused on profitable growth and capital discipline, with a clear leadership position in Travel Essentials.

• Exited unprofitable North America fashion and specialty stores, limited InMotion expansion, and shifted Rest of World to a franchise model in subscale markets.

• Implemented a remediation plan following a Deloitte review, focusing on governance, controls, and cultural change, and ongoing search for a new Group CEO.

Financial highlights

• Group revenue rose 5% year-over-year to £1.6bn (£1,553m from continuing operations), with like-for-like revenue up 5% and constant currency revenue up 7%, supported by 285 net store openings.

• Headline trading profit was £159m, headline profit before tax was £108m, and headline EBITDA reached £187m.

• Free cash flow increased 80% to £63m; headline net debt at year-end was £390m, with net debt/EBITDA leverage at 2.1x.

• Proposed final dividend of £0.06 per share, full-year dividend £0.173 per share, in line with policy.

Outlook and guidance

• Group revenue growth expected at mid-single digits for FY26: UK 3%-5%, North America 6%-8%, Rest of World 4%-6%.

• Headline trading profit margin guidance: UK 14%-15%, North America 7%-8%, Rest of World ~5%.

• Group headline profit before tax and non-underlying items guided at £100m-£115m.

• CapEx for FY26 expected at £90m, normalizing to £80m post-FY26; leverage targeted below 2.0x.

• Finance costs expected to rise to £33m-£35m due to refinancing.