H+H International (HH) Q3 2025 earnings summary

Executive summary

• Q3 2025 performance aligned with expectations, with stable or strong results in Poland and the UK, but Germany continued to face headwinds and required reorganisation.

• Volume growth in Poland and the UK offset declines in Germany; overall organic growth was 2% year-over-year.

• Ongoing reorganisation in Germany is progressing, shifting to a profit-centered regional structure and incurring significant special items.

• Market environment remains volatile and challenging, with proactive cost management and plant performance.

Financial highlights

• Q3 2025 revenue was DKK 738 million (EUR 738 million), up 1% year-over-year; organic growth was 2%.

• Gross profit before special items was DKK 179 million (24% margin); EBIT margin at 7%.

• EBITDA margin before special items was 13%, down from 14% last year.

• Net result for Q3 was a loss of DKK 10 million, compared to a profit of DKK 19 million in Q3 2024.

• Net interest-bearing debt at quarter-end was DKK 779 million, with a net debt-to-EBITDA ratio of 2.5x.

Outlook and guidance

• Organic growth guidance for 2025 revised to around 0% from previous 4%.

• EBIT before special items now expected in the range of DKK 85–115 million, down from DKK 100–150 million.

• No market improvement assumed for Germany; price increases will not offset cost inflation.

• CAPEX expected at DKK 180 million; special items of DKK 50–70 million to be paid in 2025–2026.

• U.K. market weakness expected to persist through Q4, with further clarity anticipated after the November government budget.