Bang & Olufsen (BO) Q2 25/26 earnings summary

Executive summary

• CEO Kristian Teär stepped down, with CFO Nikolaj Wendelboe appointed Interim CEO; leadership transition did not alter strategic direction.

• Q2 marked the 100-year anniversary, celebrated with global campaigns, new product launches (Beo Grace earpieces, Beosound Premiere soundbar), and a refreshed brand identity.

• Strategic focus remains on operational excellence, product innovation, and retail network expansion.

Financial highlights

• Q2 revenue was DKK 676m, down 1.2% in local currencies year-over-year; group revenue in local currencies declined by 1.2%.

• Gross margin reached a record 57.9%, up 4.2pp year-over-year.

• EBIT margin before special items was -5.3%, impacted by centennial campaign costs; adjusted EBIT margin before special items was around 0%.

• Free cash flow was DKK -33m, reflecting ongoing investments and campaign costs.

• Product gross margin (excluding Brand Partnering) was 54.4%, up 5.8pp year-over-year.

Outlook and guidance

• FY 2025/26 revenue growth in local currencies expected at 1%–5% (narrowed from 1%–8%).

• EBIT margin before special items guidance remains at -3% to +1%.

• Free cash flow guidance narrowed to DKK -100m to -50m.

• CAPEX expected at DKK 320–360m; capacity costs to rise by DKK 150m.