HORNBACH (HBH) Q4 2026 earnings summary

Executive summary

• Net sales grew 3.8% year-over-year to EUR 6.43 billion in FY 2025/26, driven by increased footfall, higher average ticket size, and outperforming the broader DIY sector in Europe.

• Adjusted EBIT was EUR 264.7 million, nearly flat year-over-year and in line with guidance, despite higher costs and a one-time prior-year energy price cap refund.

• Online sales rose 7.1% to EUR 771.4 million, now 12.7% of DIY revenue, with strong e-commerce growth supporting performance.

• Expanded market share across all key European markets, with notable gains in Germany, Netherlands, Czech Republic, Switzerland, and Austria.

• Dividend of EUR 2.40 per share proposed, maintaining a payout ratio of 27.7% and marking 39 consecutive years of dividend payments.

Financial highlights

• Consolidated revenue reached EUR 6.4 billion, with European markets outside Germany contributing 53% of group revenue and 76% of adjusted EBIT.

• Gross profit rose 4.1% to EUR 2,249.1 million, with gross margin improving to 35.0%.

• Personnel costs increased 4.5% to EUR 1.2 billion, mainly due to wage hikes and new store openings.

• Operating cash flow rose to EUR 375 million, fully covering EUR 220 million in CapEx, and free cash flow after net CAPEX and dividend reached EUR 122.6 million.

• Equity ratio increased to 44.5%; leverage ratio rose to 2.8x, and net financial debt up 5.6% due to lease renewals.

Outlook and guidance

• For FY 2026/27, net sales expected at or slightly above prior year (range: -2% to +6%), with adjusted EBIT roughly flat (-5% to +5%).

• CapEx will rise significantly to support expansion, digitalization, and operational excellence.

• Cautious outlook due to higher purchase and logistics costs, ongoing geopolitical uncertainties, and solid Q1 revenue growth.

• Three new stores planned, with continued investments in digitalization and operational excellence.