GN Store Nord (GN) Q2 2026 earnings summary

Executive summary

• Sale of the hearing business to Amplifon is progressing, with closing expected by year-end; proceeds include DKK 12.6 billion in cash and 56 million Amplifon shares.

• Carve-out and transaction-related one-off cash costs are estimated at DKK 750 million, with an upfront tax payment of DKK 1.5–2 billion offset by a tax asset.

• Cost reduction program executed in Q2 will lower running costs by DKK 200 million by 2027, supporting margin expansion from 2027.

• Shareholder distributions via buybacks and dividends will commence post-transaction closing; leverage targeted at 1x–1.5x in the short term.

• Q2 2026 saw group organic revenue decline by 4% year-over-year, with Enterprise at -7% and Gaming at +5%.

Financial highlights

• Q2 2026 organic revenue growth for continuing operations was -4%; total revenue was DKK 2,171 million, down from DKK 2,302 million in Q2 2025.

• Adjusted gross profit was DKK 1,131 million (gross margin 52.1%), up from 50.4% in Q2 2025.

• Adjusted EBITA was DKK 110 million (5.1% margin), down from DKK 164 million (7.1%) in Q2 2025, reflecting revenue decline and investments for H2 growth.

• Free cash flow (excl. M&A) was -DKK 616 million, impacted by working capital increases and one-off carve-out costs.

• Net interest-bearing debt at DKK 9.6 billion, expected to turn net positive after transaction proceeds.

Outlook and guidance

• 2026 guidance for continuing operations: organic revenue growth of 0–3% (previously 0–6%), adjusted EBITA margin of 9–10% (previously 8–9%).

• H2 2026 expected to see 4–9% organic growth, margin expansion driven by seasonality, Evolve3 rollout, and tariff refunds of DKK 100–150 million.

• Group expected to return to positive year-over-year growth from Q3 2026, with further improvement in Q4 as new products ramp up.

• Cost savings of DKK 200 million expected from 2027 due to structural initiatives.

• One-off cash costs of DKK 750 million expected across 2026–2027 for carve-out and restructuring.