HORNBACH (HBH) Q2 24/25 earnings summary

Executive summary

• Sales were stable at €3.46 billion in H1 2024/25, with market share gains and increased customer frequency in several countries.

• Gross margin rose to 34.9%, up 1.6 percentage points year-over-year, supporting a 19.9% increase in adjusted EBIT to €265.4 million.

• EPS increased by 38% to €10.78, and free cash flow improved significantly, reflecting robust operations and cost discipline.

• Customer satisfaction ranked highest in key markets, with top positions in Germany and the Netherlands for both in-store and online experiences.

• Sustainability initiatives advanced, including reusable plant trays and investments in solar panels and store infrastructure.

Financial highlights

• Net sales remained flat year-over-year at €3.46 billion for H1 2024/25; like-for-like sales grew 0.7%.

• Gross margin improved to 34.9%, up from the previous year.

• Adjusted EBIT increased 19.9% to €265.4 million, with a margin of 7.7%.

• Free cash flow was strong at €112 million, with a significant year-over-year improvement.

• Equity ratio rose to 46.5%, and net financial debt decreased, improving the debt ratio to 2.2.

Outlook and guidance

• Full-year 2024/25 forecast unchanged: sales and adjusted EBIT expected at or slightly above prior year.

• Majority of CapEx planned for H2, totaling €160-180 million for the fiscal year.

• Gross margin anticipated to remain at current higher level; tax rate expected at 25%.