H+H International (HH) Q1 2026 earnings summary

Executive summary

• Severe winter weather in Q1 2026 caused significant operational disruptions, reducing construction activity, demand, and plant utilization, resulting in a 15% decline in organic growth and EBITDA at or near zero.

• Energy price increases from the Ukraine conflict were partially offset by hedging and cost pass-throughs.

• Activity and margins improved in March, especially in Poland, supporting the maintenance of the full-year outlook.

• Transformation and restructuring efforts continue in Germany, while Poland and the UK show stronger performance and resilience.

Financial highlights

• Group sales volume declined 15% year-over-year, with revenue down to DKK 560 million from DKK 675 million, and prices flat compared to Q1 2025.

• Gross profit before special items was DKK 73 million (13% margin), down from DKK 146 million (22% margin) last year.

• EBITDA before special items was negative DKK 1 million, compared to positive DKK 64 million in Q1 2025.

• Free cash flow was negative DKK 132 million, impacted by lower EBITDA, working capital, and restructuring costs.

• Net interest-bearing debt rose to DKK 935 million, with net debt to EBITDA at 4.1, up from 2.7 at the end of Q4 2025.

Outlook and guidance

• 2026 outlook maintained: organic growth expected between -5% and 0%, EBIT before special items in the range of DKK 50–100 million.

• Severe winter is expected to negatively impact EBIT by around DKK 70 million versus last year.

• CapEx guidance for the year is DKK 100–120 million, with positive cash flow expected by year-end, including asset sales.

• Limited recovery of lost volumes anticipated for the remainder of the year.