There is just one FTSE100 Progress inventory traders are speaking about it right this moment. the rolls royce (LSE: RR) After all, it is up one other 5% this morning following its spectacular full-year outcomes. Pre-tax income rose 46% to £3.35bn in 2025, with free money movement reaching £3.3bn. CEO Tufan Erginbilgic additionally delighted traders with a £2.5bn share buyback.
The FTSE 100 plane engine producer is happy with my Self-Invested Private Pension Plan (SIPP), so I am excited too. Nevertheless, since I already personal a big quantity of inventory, I’ve no intention of shopping for any extra. I do not need to get too prime heavy on one inventory. So I am trying elsewhere for development. And right this moment, a blue-chip inventory I’ve barely paid consideration to is thrashing Rawls. What’s its title?
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Horden shares lead FTSE 100 right this moment
Horden Joinery Group (LSE: HWDN). Please do not chortle. This kitchen provider would not have the clout of Rolls-Royce. Nevertheless, the corporate’s shares topped the FTSE 100 this morning, rising round 8% in early commerce. Sadly, its long-term report would not match that of Rolls-Royce.
Even after right this moment’s surge, Horden’s inventory value is up simply 4% over the previous 12 months and 18% over 5 years. Traders are getting the very best dividend, however with a yield of only one.78%, the whole return would not change a lot. In distinction, Rolls-Royce grew by 113% in a single 12 months and 1,069% over 5 years.
The £5bn firm right this moment reported a 4.1% enhance in group income to £2.42bn, with UK gross sales up 3.8% regardless of a troublesome market. Squeezed dwelling prices and a weak housing market proceed to weigh on demand for kitchens. Issues are going even higher abroad. Worldwide income elevated by 13.5% as Howden expanded its operations in France and the Republic of Eire.
Gross revenue margin improved by 110 foundation factors to 62.7%, with productiveness financial savings of £41 million, as elevated income and sourcing and manufacturing efficiencies offset greater prices. Pre-tax revenue elevated by 5.1% to £344.9m. Howden has launched a brand new £100m share buyback and raised its full-year dividend to 21.9p per share, a 3.3% enhance from 21.2p.
Traders are completely satisfied now, however the long-term outlook is much less unsure. Mr Howden mentioned the UK kitchen market was more likely to be broadly flat year-on-year, though after years of weak point. We’re on observe to fulfill our 2026 forecast.
Rolls-Royce inventory can’t be ignored
At a price-to-earnings ratio of 18.5, it is clearly not low-cost. There is a purpose I did not change to Horden. It might be price contemplating for affected person long-term traders, but it surely lacks pleasure. There’s extra within the locker, particularly when in comparison with a Rolls-Royce. This may end in underlying working income of between £4.0bn and £4.2bn and free money movement of between £3.6bn and £3.8bn in 2026.
Whereas we may even see some revenue taking within the coming days, this can be a very sturdy efficiency and the long-term outlook stays compelling. Mr Erginbirgic has raised the bar once more, focusing on free money movement of £5bn to £5.3bn and return on fairness of 23% to 26% by 2028. It is beginning to look important for long-term UK traders, however with a staggering 65x P/E ratio, any dangerous information will likely be rewarded.
Rolls-Royce did nicely, Horden did nicely. However for the following huge FTSE 100 development technique, I will look elsewhere. I believe we now have a greater likelihood now.