HORNBACH (HBH) investor relations material

Executive summary

• Net sales grew by 7.3% in Q2 and 6.0% in the first half of FY 2026/27, reaching €3.8 billion, driven by robust demand, new store openings in Slovakia and Austria, and strong customer satisfaction in Germany and Austria.

• Adjusted EBIT increased by 12.8% in Q2 and 4.9% in the first half, with earnings per share up 1.8% year-over-year.

• Market share expanded in Germany and across Europe, outperforming the DIY sector, with top performance in Netherlands, Slovakia, and Czechia.

• Expansion included acquisition of six Hellweg store locations in Germany, new stores in Slovakia and Austria, and entry into Serbia.

• Full-year guidance for 2026/27 confirmed despite ongoing geopolitical and macroeconomic uncertainties.

Financial highlights

• Q2 net sales: €1,813.7 million (+7.3% YoY); 6M net sales: €3,816.2 million (+6.0% YoY).

• Q2 adjusted EBIT: €124.6 million (+12.8% YoY); 6M adjusted EBIT: €285.6 million (+4.9% YoY).

• Gross margin slightly decreased to 34.6% in 6M 2026/27 due to higher procurement and logistics costs.

• Free cash flow after CapEx and dividends reached €194.9 million, up 50.4% year-over-year.

• Equity ratio improved to 45.8%; net financial debt reduced to €1,173.6 million; leverage ratio at 2.3x.

Outlook and guidance

• Guidance for FY 2026/27 confirmed: net sales expected at or slightly above prior year, adjusted EBIT at or around previous year's level.

• Expansion to continue with new store openings in Austria, Netherlands, and Slovakia, and planned takeover of six Hellweg locations in Germany.

• CapEx expected to be significantly higher due to expansion, especially Hellweg integration and Serbia entry.

• Free cash flow anticipated to be lower due to higher investments, but operating cash flow remains solid.

• Guidance reflects planned sales growth from new and existing stores and online, balanced against geopolitical and cost risks.