Hoenle AG's Q2 Performance and Market Outlook

Hoenle AG released its Q2 FY25/26 results, demonstrating a stronger EBITDA performance despite challenges. The company's revenue declined by 7.8% year-over-year (yoy) to €23.8m, driven by a tough market environment in the Curing segment and the insolvency of a key client, Manroland Sheetfed GmbH. However, Adhesive Solutions saw a 3.4% yoy growth, contributing to an EBITDA increase of 57% yoy to €2.2m, with a margin of 9.2%.

The Adhesive Systems segment reported revenue of €9.3m, aided by efficiency gains and portfolio optimization. Meanwhile, Curing revenue decreased by 22.7% yoy to €7.3m, affected by geopolitical uncertainties. Disinfection's revenue remained flat at €7.3m, but its EBITDA contribution declined.

Management maintained its guidance for FY25/26 with sales between €95-105m and EBITDA between €6-9m, emphasizing potential downsizing in response to the weak Curing performance. Hoenle AG upholds a "BUY" recommendation with a target price of €15.