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Original-Research: HORNBACH Holding AG & Co. KGaA - from Quirin Privatbank
Kapitalmarktgeschäft

24.06.2025 / 16:23 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to HORNBACH Holding
AG & Co. KGaA

Company Name: HORNBACH Holding AG & Co. KGaA
ISIN: DE0006083405

Reason for the research: Update
Recommendation: Buy
from: 24.06.2025
Target price: 110.00
Last rating change:
Analyst: Ralf Marinoni

Q1-25/26: strong increase of sales, earnings and cash flow

HORNBACH Holding started strong into the current business year; in our view,
there were 3 highlights: 1) significant increase in sales (EUR 1,909.2m,
+5.7% yoy) and adjusted EBIT (EUR 161.7m, +10.4% yoy), 2) more than tripling
of free cash flow (EUR 147.4m vs. EUR 43.0m in Q1-24/25) and 3) a
specification of the FY 2025/26 guidance, with the company saying that the
upper range of adj. EBIT is likely.
The HORNBACH Baumarkt sales grew across all regions, with Germany
contributing 48% and other European countries 52% of total sales. This
subgroup experienced a 5.8% sales increase, while the Baustoff Union
subgroup rose by 3.1%. It is worth mentioning that the Baustoff Union serves
commercial clients and the weakness in the construction sector may have
"bottomed out" according to CEO Albrecht Hornbach.
Like-for-like sales growth was positive in nearly all countries, with
particularly strong results in Luxembourg and the Netherlands (both +10.9%).
Market share gains were again achieved in Germany, the Netherlands, Czechia,
Austria, and Switzerland. E-commerce sales grew by 11.1%, with online
channels accounting for 13.1% of Baumarkt sales, while they were 12.4% in Q1
24-25. The company maintained a strong balance sheet, with an equity ratio
of 45.5% and net debt/EBITDA reduced to 2.3x (February 2025: 2.6x).
In our opinion, HORNBACH's outlook continues to remain
cautious/conservative. We therefore confirm our Buy recommendation and the
EUR 110 TP.

You can download the research here: http://www.more-ir.de/d/32908.pdf
For additional information visit our website:
https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/

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2159850 24.06.2025 CET/CEST

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