HORNBACH Baumarkt (HBM) Q4 24/25 earnings summary

Executive summary

• Hornbach Group achieved net sales of €6.2 billion in FY 2024/25, up 0.6% year-over-year, with adjusted EBIT rising 6% to €270 million, despite challenging economic conditions in the EU and Germany.

• Hornbach Baumarkt AG, the largest subgroup, delivered €5.85 billion in net sales (+1.2% year-over-year) and a 10% increase in adjusted EBIT to €234 million, outperforming the industry average.

• The DIY division contributed 94% of consolidated sales, while the Baustoff Union segment saw a 6.2% sales decline due to construction sector weakness.

• E-commerce sales reached €720 million, down 1.7% year-over-year, but click-and-collect and online engagement remained strong.

• Employee count rose 2.2% to 25,329, driven by expansion, and a new CFO, Dr. Joanna Kowalska, will join in August 2025.

Financial highlights

• Gross margin improved due to lower commodity prices, product innovation, and favorable product mix, while cost increases were kept below gross margin growth.

• Net debt to EBITDA ratio stood at 2.6, slightly higher than last year but within normal range; financial debt (excluding leases) reduced by €26 million.

• Cash flow from operating activities was €318 million, with free cash flow at €108 million after investments and dividends.

• Equity ratio was 44.1%, supporting further development and inventory build-up for the spring season.

• Proposed dividend of €2.4 per share, maintaining a payout ratio of 27%.

Outlook and guidance

• FY 2025/26 net sales and adjusted EBIT are expected to be at or slightly above prior year levels, with cautious guidance due to macroeconomic and political uncertainties.

• Favorable start to the spring season and strong Q1, but management remains conservative given unpredictable external factors.

• Store expansion to continue, with four new openings planned in 2025 and a similar trend expected for 2026.