Hornbach Holding (AO) | Hold | Q1 reveals a solid start to the FY26/27

Research evidence excerpt

Hornbach Holding (AO) | Hold | Q1 reveals a solid start to the FY26/27

News comment

Release date: 19 June 2026

Jürgen Kolb

Deputy Head of German Research

+49 69 7569 6212

jkolb@keplercheuvreux.com

HoldHornbach Holding

Germany | General retail Beta Profile: MCap: EUR1.2bn

Target Price: EUR83.80 Bloomberg: HBH GR Reuters: HBH.DE

Current Price: EUR77.50 Free float 43%

Up/downside: 8.1% Avg. daily volume (EURm) 2.1

YTD abs performance -7.5% Market data: 18 June 2026

52-week high/low (EUR) 107.60/76.10

Q1 reveals a solid start to the FY26/27

Key points:

Hornbach started with a solid Q1 in its FY26/27. Group sales were 2% above street estimates, gross profit was in line with

consensus and adj. EBIT was c. 2% below Visible Alpha consensus. A better gross gross profit margin of 10bps almost entirely

offset higher opex which increased due to higher wage costs and increased store opening expenses.

The company leaves its FY26/27 guidance unchanged. Note: On average, Q1 contributes c. 49% to annual adj. EBIT. The sunny Q1

weather conditions supported Hornbach Baumarkt's LFL sales, which increased by 2.8%. Free cash flow down slightly be 3% on

higher CAPEX.

We saw Hornbach's operating risk in its gross profit and if it can pass on to the consumer the expected input price increase and

how the free cash flow will develop on the basis of higher capex investments. In Q1, it managed these operating risks well.

Conference call today at 8:30am CEST.

Solid start into FY26/27

Q1 sales came in 2% above consensus, gross profit was in line and adj. EBIT is c. 2% below street estimates.

On a reported basis, group adj. EBIT came in broadly flat (down 0.4% YOY) and a 40bps adj. EBIT margin decline driven by a

slightly better gross profit margin by 10bps, which largely offset opex increases.