GN Store Nord A/S

GN’s continuing operations delivered -4% organic revenue growth in Q2. Adjusted EBITA was DKK 110 million, with an adjusted EBITA margin of 5%. Total one-off costs were DKK 74 million, all cash costs. Free cash flow excluding M&A was minus DKK 616 million, and net interest-bearing debt ended at DKK 9.6 billion. On a divisional basis, Enterprise gross profit was DKK 891 million with a 57.2% gross margin versus 56.1% a year ago, and divisional profit was DKK 483 million with a 31% margin versus 34% last year. Gaming revenue was DKK 613 million, with 5% organic growth, gross margin of 39.2% versus 34% last year, and divisional profit margin of 15% versus 12.2% last year. For full-year 2026, GN narrowed revenue guidance toward the lower half of the prior range, upgraded adjusted EBITA margin guidance to 9% to 10%, and said tariff refunds are assumed at DKK 100 million to DKK 150 million. Management said Q3 should be a turning point with a return to positive group organic growth, with further improvement into Q4.

Peter Karlstromer framed the quarter as a setup period for second-half growth rather than a stand-alone peak. He emphasized the Evolve3 portfolio expansion in Enterprise, saying the new products will refresh roughly half of that business and support a return to growth in the second half, while Gaming should benefit from continued headset momentum and new mice and keyboard launches. On Hearing, he said the Sensia launch is early but initial preorders and customer sign-ups are encouraging, and he reiterated that the carve-out and Amplifon transaction remain on track toward year-end.

Soren Jelert said Q2 gross margin improved strongly after a weak Q1, and that this, together with revenue seasonality, tariff refunds of DKK 100 million to DKK 150 million, and relatively stable OpEx, supports the full-year adjusted EBITA margin target of 9% to 10%. He noted one-off costs of DKK 74 million in the quarter, mostly related to the hearing carve-out and new GN structure, and free cash flow excluding M&A of minus DKK 616 million due to temporary working-capital buildup from supply-chain insourcing. He also said net interest-bearing debt was DKK 9.6 billion, but the hearing transaction proceeds should leave GN with a net positive cash position at closing.

Analysts pressed on Enterprise risks outside the core headset refresh, tariff refunds and pricing, competitive pressure from Chinese rivals, the cut in the Gaming outlook despite a confirmed GTA VI launch, Hearing weakness tied to the Amplifon transition and U.S. retailer pressure, supply-chain insourcing, and the phasing of H2 growth. Management said the Enterprise non-headset parts are okay, with video and frontline worker also performing well, and that the portfolio refresh should more than offset any aging products; they also said they are not seeing renewed share loss in the latest quarter. On tariffs, Soren Jelert said refunds should not change current pricing plans, since GN intends to close the historical tariff gap as new products roll out. On Hearing, Peter Karlstromer attributed the Q2 slowdown mainly to tougher comps, launch timing, and a large U.S. retailer adding suppliers, while saying the carve-out is progressing well and Q3 and Q4 should bounce back.