Original-Research: HORNBACH Holding AG & Co. KGaA - from Quirin Privatbank Kapitalmarktgeschäft
24.06.2025 / 16:23 CET/CEST
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Classification of Quirin Privatbank Kapitalmarktgeschäft to HORNBACH Holding AG & Co. KGaA

Q1-25/26: strong increase of sales, earnings and cash flow

HORNBACH Holding started strong into the current business year; in our view, there were 3 highlights: 1) significant increase in sales (EUR 1,909.2m, +5.7% yoy) and adjusted EBIT (EUR 161.7m, +10.4% yoy), 2) more than tripling of free cash flow (EUR 147.4m vs. EUR 43.0m in Q1-24/25) and 3) a specification of the FY 2025/26 guidance, with the company saying that the upper range of adj. EBIT is likely.
The HORNBACH Baumarkt sales grew across all regions, with Germany contributing 48% and other European countries 52% of total sales. This subgroup experienced a 5.8% sales increase, while the Baustoff Union subgroup rose by 3.1%. It is worth mentioning that the Baustoff Union serves commercial clients and the weakness in the construction sector may have “bottomed out” according to CEO Albrecht Hornbach.
Like-for-like sales growth was positive in nearly all countries, with particularly strong results in Luxembourg and the Netherlands (both +10.9%). Market share gains were again achieved in Germany, the Netherlands, Czechia, Austria, and Switzerland. E-commerce sales grew by 11.1%, with online channels accounting for 13.1% of Baumarkt sales, while they were 12.4% in Q1 24-25. The company maintained a strong balance sheet, with an equity ratio of 45.5% and net debt/EBITDA reduced to 2.3x (February 2025: 2.6x).
In our opinion, HORNBACH's outlook continues to remain cautious/conservative. We therefore confirm our Buy recommendation and the EUR 110 TP.


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