^

Original-Research: Dr. Hönle AG - from NuWays AG

12.08.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of NuWays AG to Dr. Hönle AG

Company Name: Dr. Hönle AG

ISIN: DE0005157101

Reason for the research: Update

Recommendation: BUY

from: 12.08.2025

Target price: EUR 16.00

Target price on sight of: 12 month

Last rating change:

Analyst: Christian Sandherr

Mixed Q3, FY guidance lowered but prospect remain attractive

Dr. Hönle reported Q3 figures, following a downward revision to their

full-year guidance earlier last week. The company's operations continue to

be burdened by weak demand across its key markets, particularly in adhesive

and curing systems. While internal measures are helping to stabilize

earnings, the top line remains under pressure due to delayed investments in

key customer industries. In detail:

Q3 revenue fell 5.5% yoy to EUR 22.4m on the back of weak Adhesives busine

(-14.6% yoy to EUR 7.8m; Q1-3: -10.5% yoy to EUR 24.9m) as the unit struggled

with persistent weakness in the automotive sector and shifting Asian

electronics supply chains, which drove notable sales declines, delayed new

projects, and slowed development momentum.

Positively, Curing showed further stabilization with sales down only 0.6%

yoy to EUR 8.7m (Q1-3: -1.3% yoy) while Disinfection remained on a modest

growth path (Q3: +1.7% yoy to EUR 6.1m; Q1-3: +5.5% yoy). This reflect

restructuring measures in Curing, including a focus on core competencies,

discontinuation of unprofitable product lines such as solar simulation (~ EUR

2m sales p.a.), and cost reductions, while Disinfection benefited from

higher UV lamp and component sales, especially for ballast water systems.

EBITDA for the quarter came in at EUR 0.5m, down from EUR 1.4m last year (margin

-3.4pp yoy to 2.3%). The decline mainly reflects soft order intake, and

underutilization in parts of the business. This was particularly visible

within Adhesives, which recorded a 7.9pp margin decline to 6.9%. With higher

sales, the Disinfection margin climbed to 10.8% (+4.4pp yoy).

Net financial debt decreased further to EUR 42.7m (vs. EUR 46m at the end of Q3

2023/24) thanks to a solid operating cash flow (Q1-3: EUR 3.7m) on the back of

reduced working capital but also the sale of a non-core property (EUR 1.3m

proceeds). Worth highlighting, the majority of the financial debt (eNuW: EUR

30m running until mid 2038) is related to investments and loans for the

group's corporate buildings.

New FY24/25 guidance. Early last week, management already cut its guidance

to now EUR 92-94m sales (old: EUR 95-105m) and EBITDA of EUR 5-6m (old:

significantly higher than the adj. EBITDA of the previous year of EUR 5.5m) a

a result of the above described cautiousness across key end markets but also

FX headwinds.

Prospects remain promising. As outlined during the CMD at the beginning of

the year, Hönle targets EUR 175m sales and a 20-25% EBITDA margin by 2030

carried by the already ongoing strategic transformation, visible in the

divestment of the unprofitable sun simulation business, reduced SG&A and

more importantly new solutions gaining traction (e.g. first EUR 250-300k sale

of UV disinfection for ultra-pure water). For the time being, we remain more

cautious (eNuW: EUR 137m sales, 6% CAGR 2024/23-2029/30e with 15% EBITDA

margin)

BUY with a EUR 16 PT based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=967d2f7ef25ea78cecf4abf8f8d2e346

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

++++++++++

Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

++++++++++

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

2182502 12.08.2025 CET/CEST

°