HORNBACH Holding's Strong Start to Fiscal Year with Sales and Earnings Growth

HORNBACH Holding AG & Co. KGaA has commenced its fiscal year on a strong note, as revealed by Quirin Privatbank's latest research update. The company saw a notable year-over-year sales increase of 5.7% in Q1-25/26, reaching EUR 1,909.2 million, while adjusted EBIT rose by 10.4% to EUR 161.7 million. Additionally, the company experienced more than a threefold rise in free cash flow compared to the previous year.

HORNBACH's Baumarkt sales grew across all regions, with Germany accounting for 48% and other European nations 52%. Sales in Luxembourg and the Netherlands stood out with 10.9% growth. E-commerce saw an uptick, comprising 13.1% of Baumarkt revenue. The company's balance sheet remains strong, with an equity ratio of 45.5% and improved net debt/EBITDA ratio.

Despite these gains, HORNBACH's outlook remains cautious. Quirin Privatbank maintains a 'Buy' recommendation with a target price of EUR 110, reflecting confidence in the company's performance trajectory.