Bang & Olufsen (BO) investor relations material

Executive summary

• Revenue grew 1.3% in local currencies in Q3 2025/26, but reported revenue declined 1.7% due to lower-than-expected Beosound Premiere sales and intensified geopolitical and economic uncertainty.

• Gross margin improved to 57.5%, up 2.1pp year-over-year, driven by higher-margin products and favorable product mix.

• EBIT margin before special items fell to 1.9%, down from 3.8% last year, reflecting lower revenue.

• Free cash flow was positive at DKK 22m, up from DKK 18m in the prior year.

• Mid-term financial ambitions through 2027/28 were withdrawn, and FY 2025/26 outlook was revised downward.

Financial highlights

• Q3 revenue: DKK 621m (+1.3% in local currencies, -1.7% reported); 9M revenue: DKK 1,814m (-1.1% in local currencies).

• Gross margin: 57.5% in Q3, up 2.1pp from 55.4% last year.

• EBIT margin before special items: 1.9%, down from 3.8% last year.

• Free cash flow: DKK 22m in Q3, up from DKK 18m; 9M free cash flow: DKK -146m.

• Net available liquidity dropped to DKK 112m from DKK 372m a year ago.

Outlook and guidance

• FY 2025/26 revenue growth outlook revised to -3% to 0% in local currencies (previously 1% to 5%).

• EBIT margin before special items expected at -3% to -1% (previously -3% to 1%).

• Free cash flow guidance revised to DKK -200m to -150m (previously DKK -100m to -50m).

• CAPEX expected at DKK 280-300m, down from previous DKK 320-360m.

• Mid-term financial ambitions through 2027/28 withdrawn.