Hoenle: Q3 FY25/26: Adhesive Solutions driving the bottom-line - NuWays AG Research
Yesterday, hoenle reported Q3 25/26 results, clearly reflecting turnaround progress despite the guidance cut on July 26.
ANNONS
Bottom line strengthened. EBITDA came in at € 1.7m (eNuW: € 0.7m), up 54.3% yoy. This against moderate top-line growth of 4.6% to € 23.7m (eNuW: € 22.6m). The profitability gains were especially driven by a stronger-than-anticipated contribution from Adhesive Solutions, carried by project-related growth in electronics and med tech as well as internal optimization efforts. The Q3 EBITDA margin improved from 2.5% to 3.6%.
Turnaround progress clearly visible, further internal optimization expected. Both Adhesive Solutions and Curing show marked bottom-line improvements on a yoy basis. This clearly shows progress made on various initiatives within hoenle aimed at reducing costs and improving margins.
However, given the weak environment in Curing we view further cost reduction measures, i. e. capacity adjustments due to prolonged demand reduction, as essential to returning to a positive bottom-line contribution. Hence, we expect management to remain focused on internal optimization efforts in Curing, while leveraging growth opportunities in Disinfection and Adhesives.
With our core estimates and valuation assumptions unchanged, we reiterate BUY at € 14.0, based on DCF.
