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Original-Research: HORNBACH Holding AG & Co. KGaA - from Quirin Privatbank

Kapitalmarktgeschäft

24.06.2025 / 16:23 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.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to HORNBACH Holding

AG & Co. KGaA

Company Name: HORNBACH Holding AG & Co. KGaA

ISIN: DE0006083405

Reason for the research: Update

Recommendation: Buy

from: 24.06.2025

Target price: 110.00

Last rating change:

Analyst: Ralf Marinoni

Q1-25/26: strong increase of sales, earnings and cash flow

HORNBACH Holding started strong into the current business year; in our view,

there were 3 highlights: 1) significant increase in sales (EUR 1,909.2m,

+5.7% yoy) and adjusted EBIT (EUR 161.7m, +10.4% yoy), 2) more than tripling

of free cash flow (EUR 147.4m vs. EUR 43.0m in Q1-24/25) and 3) a

specification of the FY 2025/26 guidance, with the company saying that the

upper range of adj. EBIT is likely.

The HORNBACH Baumarkt sales grew across all regions, with Germany

contributing 48% and other European countries 52% of total sales. Thi

subgroup experienced a 5.8% sales increase, while the Baustoff Union

subgroup rose by 3.1%. It is worth mentioning that the Baustoff Union serve

commercial clients and the weakness in the construction sector may have

„bottomed out“ according to CEO Albrecht Hornbach.

Like-for-like sales growth was positive in nearly all countries, with

particularly strong results in Luxembourg and the Netherlands (both +10.9%).

Market share gains were again achieved in Germany, the Netherlands, Czechia,

Austria, and Switzerland. E-commerce sales grew by 11.1%, with online

channels accounting for 13.1% of Baumarkt sales, while they were 12.4% in Q1

24-25. The company maintained a strong balance sheet, with an equity ratio

of 45.5% and net debt/EBITDA reduced to 2.3x (February 2025: 2.6x).

In our opinion, HORNBACH's outlook continues to remain

cautious/conservative. We therefore confirm our Buy recommendation and the

EUR 110 TP.

You can download the research here: http://www.more-ir.de/d/32908.pdf

For additional information visit our website:

https://research.quirinprivatbank.de/

Contact for questions:

Quirin Privatbank AG

Institutionelles Research

Schillerstraße 20

60313 Frankfurt am Main

research@quirinprivatbank.de

https://research.quirinprivatbank.de/

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2159850 24.06.2025 CET/CEST

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