HORNBACH Q2 2025/26 presentation: Sales up 4.4%, e-commerce drives growth

Introduction & Market Context

HORNBACH Holding AG & Co. KGaA (ETR:HBH) presented its Q2/6M 2025/26 results on September 30, 2025, revealing continued growth despite challenging market conditions. The company’s stock has maintained positive momentum, trading at €103.20, up from €97.70 following its Q1 results and approaching its 52-week high of €108.40.

CFO Dr. Joanna Kowalska led the presentation, highlighting the company’s ability to navigate macroeconomic headwinds while expanding its market presence across Europe. The DIY retailer’s performance reflects its successful execution of both brick-and-mortar expansion and digital transformation strategies.

Quarterly Performance Highlights

For the first half of fiscal year 2025/26, HORNBACH reported total sales of €3,599.1 million, representing a 4.4% increase compared to the same period last year. Like-for-like sales grew by 3.6%, with customer footfall improving by 3.3% year-over-year.

The company’s gross profit increased by 4.6% to €1,257.3 million, maintaining a stable gross margin of 34.9%. Adjusted EBIT rose by 2.5% to €272.2 million, with a margin of 7.6%, slightly below the 7.7% reported in the previous year.

As shown in the following chart of net sales performance, the HORNBACH Group has maintained a steady growth trajectory, with the Baumarkt subgroup driving the overall increase:

The second quarter showed continued positive momentum, with adjusted EBIT of €162 million compared to €146 million in Q2 2024/25, representing an 11% increase. This strong Q2 performance helped offset a weaker Q1, where adjusted EBIT had declined from €119 million to €110 million.

Country-specific performance varied significantly, with the Netherlands emerging as the standout market. The following table illustrates like-for-like sales growth across HORNBACH’s operating regions:

E-commerce and International Growth

E-commerce continues to be a significant growth driver for HORNBACH, with online sales reaching €447 million in the first half of 2025/26, representing 13.1% of total net sales. This marks an increase from 12.5% in the previous year, with both direct delivery and click & collect services contributing to this growth.

The following chart demonstrates HORNBACH’s e-commerce evolution:

HORNBACH has successfully expanded its market share in key regions during the 2025 calendar year. Particularly notable are the gains in the Netherlands (+1.3 percentage points to 28.8%) and Germany (+0.6 percentage points to 15.5%). The company’s #1 ranking in customer satisfaction in Germany and Austria further underscores its competitive strength.

The company’s international expansion continues with new store openings. In September 2025, HORNBACH opened its 10th store in Romania (Bucharest Colentina) and its 15th store in Austria (Eisenstadt), with an additional Romanian location (Timişoara 2) scheduled to open in October 2025.

Financial Position and Cash Flow

HORNBACH reported a strengthened financial position, with free cash flow increasing by 16% to €129.6 million. This improvement was primarily driven by better working capital management, which offset higher capital expenditures.

The company’s CAPEX more than doubled to €106.7 million compared to €51.2 million in the prior year, reflecting its ongoing expansion strategy. The CAPEX was allocated to land and new stores (56%), store conversions and equipment (33%), and software (11%).

The balance sheet remains robust, with the equity ratio improving to 46.9% from 44.1% in February 2025. Net financial debt decreased, leading to an improved leverage ratio (Net debt/EBITDA) of 2.4x compared to 2.6x at the end of the previous fiscal year.

Outlook and Strategic Initiatives

HORNBACH maintained its guidance for fiscal year 2025/26, expecting net sales to be at or slightly above the previous year’s level of €6,200 million. The company anticipates adjusted EBIT to be at the level of 2024/25 (€269.5 million), with current performance suggesting results will likely be in the upper half of the guidance range.

The following slide outlines HORNBACH’s guidance and planned store openings:

Capital expenditures for 2025/26 are projected to exceed the €183.7 million spent in 2024/25, reflecting the company’s continued commitment to expansion and modernization.

Dr. Kowalska emphasized the company’s strategic focus on enhancing its omnichannel capabilities while expanding its physical footprint in key European markets. The continued growth in e-commerce, now representing 13.1% of total sales, underscores the success of this approach.

Despite ongoing macroeconomic uncertainties, HORNBACH’s market share gains and improved operational efficiency position the company well for sustained growth. The balanced geographical diversification, with 52.7% of sales from Germany and 47.3% from other European markets, provides resilience against regional economic fluctuations.

As HORNBACH continues its expansion strategy and digital transformation, investors will be watching closely to see if the company can maintain its growth momentum in an increasingly competitive European DIY market.

Full presentation:

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