H+H International (HH) Q1 2026 earnings summary

Executive summary

• Severe winter weather in Q1 2026 caused significant operational disruptions, reducing construction activity, demand, and plant utilization, resulting in a 15% decline in organic growth and EBITDA of zero or negative.

• Activity levels began recovering in March, with Poland showing the strongest rebound and the UK performing as expected.

• Energy price increases from geopolitical tensions were partially mitigated by hedging and cost pass-through to customers.

• Operational improvements continue, including the HOME initiative and restructuring in Germany, with ongoing focus on margin protection.

Financial highlights

• Group sales volume declined 15% year-over-year, with revenue down to DKK 560 million from DKK 675 million, and prices flat compared to Q1 2025.

• Gross profit before special items was DKK 73 million (13% margin), significantly below target due to low plant utilization.

• EBITDA before special items was zero or negative DKK 1 million, with EBIT margin at -8%.

• Free cash flow was negative DKK 132 million, impacted by negative EBITDA, seasonal working capital, and restructuring costs.

• Net interest-bearing debt increased to DKK 935 million, with net debt to EBITDA ratio rising to 4.1 from 2.7 at year-end.

Outlook and guidance

• Full-year 2026 outlook maintained: organic growth expected between -5% and 0%, EBIT before special items in the range of DKK 50–100 million.

• Severe winter is expected to negatively impact EBIT by around DKK 70 million versus last year.

• CAPEX for 2026 projected at DKK 100–120 million; positive free cash flow expected, including asset sales.

• Limited recovery of lost volumes anticipated for the remainder of the year.

• Assumptions include continued market performance in the UK and Poland and DKK 40 million in benefits from German restructuring.