HORNBACH Holding AG & Co. KGaA

HORNBACH Group net sales for the first 9 months of fiscal 2025/26 reached EUR 5.1 billion, up 3.8% year over year. Gross profit increased by 4.1% or EUR 72 million, and gross margin was stable at 34.7%. Adjusted EBIT for the 9-month period was about EUR 300 million, in line with last year; in Q3, adjusted EBIT came in EUR 7.3 million below the prior-year quarter while sales rose 2.2%. Like-for-like sales rose 2.6% in the first 9 months, including 0.7% in Germany and 4.3% in other European countries. For the full year, management reiterated guidance for net sales at or slightly above 2024/25, adjusted EBIT at the previous-year level, and CapEx of up to EUR 230 million.

No CEO spoke on the call; CFO Joanna Kowalska led the presentation. Her strategic message was that HORNBACH is staying focused on organic growth, market share gains, and disciplined expansion despite subdued consumer sentiment. She highlighted the company’s store-opening track record, the new Serbia market entry, and the view that HORNBACH’s project-oriented format and omnichannel model remain well positioned for long-term growth.

Joanna Kowalska said the 9-month period was positive despite a challenging environment: sales were up 3.8%, gross profit up EUR 72 million, gross margin at 34.7%, and adjusted EBIT roughly flat at about EUR 300 million. She noted higher costs from wages, new stores, preopening spending, and IT investment, with personnel costs at EUR 871 million, up 4.9%, and Q3 personnel costs rising about 3%; she said Q4 should look similar. CapEx reached EUR 167 million versus EUR 107 million last year, free cash flow after net CapEx and dividend was EUR 105 million versus EUR 150 million, equity ratio was 47.1%, and net financial debt-to-EBITDA improved to 2.5x.

Analysts focused on regional performance, especially weaker Q3 growth in Romania and the strong base in Czechia; management said Romania’s Q3 softness was a temporary budget-adjustment effect and Czechia was affected by a flood comparison base from last year. Questions also probed Serbia, where management said 3 to 4 locations are secured and the plan is for 6 to 8 large stores, with first opening no earlier than end-2027. On costs and capital allocation, management emphasized that wage inflation and headcount for new stores are the main cost drivers, that IT investment should improve efficiency over time, and that new projects are approved against WACC-based hurdles while the dividend policy remains intact.