A few years ago Currys (LSE:CURY) looked like a retailer under siege. Sales of electricals had fallen after the Pandemic boom, the pension Deficit was a burden and activist investor Elliott was circling. Its turnaround since then has not relied on selling more televisions. Instead the group has focused on the higher-margin Revenue around each sale: consumer credit, mobile contracts, repairs, protection plans and business-to-business sales. At the same time it has cut costs, sold weaker operations and rebuilt its balance sheet.

The results are showing. In the year to 2 May 2026, adjusted pre-tax profit rose 18% to £191m, above the £180m to £190m it had guided, and the Dividend was doubled. A trading update on 10 September then showed group like-for-like sales up 7% in the 17 weeks to 29 August.

The turnaround now has a new leader. Fredrik Tønnesen, who ran the Nordics Business for more than 20 years, became group chief executive on 3 August 2026, succeeding Alex Baldock.

Two Markets, One Model

Currys trades in the UK and Ireland, and in the Nordic countries through its Elkjøp chain. In 2025/26, UK and Ireland revenue was £5,438m and Nordics revenue was £3,816m, for a group total of £9,254m, up 6% on a reported basis and 4% at constant currency.

Selling electricals is a low-margin business, so Currys earns much of its profit from services linked to those sales. Recurring services revenue rose 7% to £873m in 2025/26. iD Mobile, its mobile network, grew subscribers 18% to 2.6m. Credit sales under its flexpay offer rose 10% to £1.2bn, and the group has 11.6m active protection plans. Around 1,500 engineers carried out 1.6m repairs. Sales to business customers rose 20% in the UK and Ireland and 16% in the Nordics, and now make up 8% of group sales.

The company is also pitching itself as a winner from AI-enabled products. It said it has a 75% share of the UK market for AI-enabled laptops, and that Copilot+ PCs account for around a quarter of its laptop sales. It also uses AI internally, including a diagnostic tool it says resolves 40% of potential returns without the product coming back.

What the Turnaround Has Delivered

Much of the restructuring happened under Mr Baldock, who joined in 2018 after the Dixons Carphone merger. The group overhauled its store estate, exited weaker international operations and rebuilt profitability. Baldock fended off Elliott's Takeover approach, after which the share price doubled over two years.

The 2025/26 figures show the progress by region. In the UK and Ireland, like-for-like sales rose 3% and adjusted EBIT rose 3% to £158m, with Market Share up 60 basis points in a market that fell 1.3%. The Nordics did better: like-for-like sales rose 6% and adjusted EBIT rose 35% to £97m, or 26% at constant currency, with the Margin improving 40 basis points to 2.5%.

Group adjusted Earnings Per Share rose 19% to 13.4p and statutory pre-tax profit rose 23% to £153m. Free Cash Flow increased 5% to £157m and net cash was £176m at the year end.

Capital Returns and a Lighter Pension Burden

The improvement in cash is changing what Currys can offer shareholders. The full-year dividend doubled to 3.0p, and a £50m buyback began in July; £23m had been completed by the September update. The board is targeting dividend cover of 4.0 times, down from 4.5 times, and wants to keep net cash of at least £100m at each year end.

Another important change is the pension. Currys paid £82m into its pension schemes in 2025/26, but scheduled contributions fall to £13m a year from 2026/27 to 2030/31, freeing up a substantial amount of cash. The company's medium-term aims include an adjusted EBIT margin of at least 3% in both regions and annual Capital spending below £100m.

Momentum Into 2026/27

The September trading update was the strongest in some time. Like-for-like sales rose 6% in the UK and Ireland and 9% in the Nordics, and gross margins were stable. The company said it gained share in every category in a flat UK market. iD Mobile subscribers passed 2.7m, and Currys is targeting at least 2.8m by the year end. Flexpay penetration rose 30 basis points to 23.6%.

Management said all guidance was unchanged and that it was comfortable with market consensus. In July, it said that meant adjusted pre-tax profit of £198m for 2026/27. That is an analyst figure the company has endorsed, not a formal forecast.

The Pressures That Remain

Even after a year of higher profits, the margins are thin. A 2.5% EBIT margin in the Nordics and a UK market that declined in 2025/26 leave little margin for error if consumer Demand weakens or competition from online rivals and supermarkets increases. Demand for big-ticket electricals is sensitive to household finances and interest rates.

The credit and services model has its own risks, including regulatory scrutiny of consumer finance and the need to keep protection plans good value for customers. There is also Leadership risk. The shares fell when Mr Baldock's departure was announced, and he is leaving to run Boots. Mr Tønnesen has a strong record in the Nordics, where the company says he tripled operating profit, but he now has to show he can deliver the same in the larger UK business. Exchange rates also affect how Nordic profits translate into sterling.

Dates for the Diary

Currys will publish interim results for the 26 weeks to 31 October 2026 on 17 December 2026. That will include the key Black Friday period and the first half-year under Mr Tønnesen. Other things to watch include the pace of the buyback, whether iD Mobile reaches its subscriber target and whether UK market share gains continue.

The Bottom Line

Currys has moved from defending itself against Elliott to growing profits, doubling its dividend and buying back shares. That reflects greater focus, a lighter pension burden and services revenue. The first months of 2026/27 have been strong. However, margins remain low in a cyclical, competitive market, and the company is under new leadership, so it still has to show that the recovery can last.