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    Hornbach (XTRA:HBH) Margin Pressure Undercuts Bullish Profitability Narrative in Q3 2026 Results

    Simply Wall St·12/21/2025 01:26:16
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    HORNBACH Holding KGaA (XTRA:HBH) has posted its Q3 2026 numbers with revenue of €1.5 billion and EPS of €0.64, alongside net income of €10.2 million, setting a measured tone for the latest update. The company has seen revenue move from €1.51 billion in Q3 2025 to €1.54 billion in Q3 2026, while trailing 12 month EPS sat at €8.34 and total revenue at €6.39 billion, giving investors a clear read on scale and profitability as net margins continue to edge lower. Overall, the release points to a business that is still generating solid sales volumes but feeling pressure at the bottom line as margins stay under the spotlight.

    See our full analysis for HORNBACH Holding KGaA.

    With the headline numbers on the table, the next step is to weigh them against the most common narratives around HORNBACH's growth prospects and profitability to see which stories hold up and which ones need a rethink.

    See what the community is saying about HORNBACH Holding KGaA

    XTRA:HBH Earnings & Revenue History as at Dec 2025
    XTRA:HBH Earnings & Revenue History as at Dec 2025

    Net margin slips to 2.1%

    • Over the last 12 months, HORNBACH generated €6.39 billion in revenue and €133.5 million in net income, which equates to a 2.1% net margin versus 2.6% the year before.
    • Analysts' consensus narrative expects process efficiencies and better online offline integration to support profitability, yet:
      • Trailing net income has eased from €172.1 million to €133.5 million over recent periods, which runs against the idea of steadily improving profit conversion.
      • Same store sales growth of 4.7% in Q1 2026 and 2.4% in Q2 2026 has not translated into margin expansion, underscoring how higher costs, including salaries, are absorbing part of the operational gains.

    Revenue up, profits softer

    • Q3 2026 revenue of €1.54 billion is slightly above the €1.51 billion reported in Q3 2025, but net income in the same period fell from €16.8 million to €10.2 million.
    • Consensus narrative points to organic European growth and new stores as future earnings drivers, while the recent numbers show:
      • Same store sales growth was a modest 2.0% in Q3 2025 and management now only anticipates net sales to be at the previous year's level, which lines up with the recent 0.5% sales growth reference.
      • Rising salary expenses and pre opening costs for new stores are already weighing on EBIT in Q3, so expansion can initially dilute profitability even as it supports the long term sales story.

    Cheap valuation versus growth

    • At a share price of €84.20, HORNBACH trades on a trailing P E of about 10.1 times, below peers at roughly 18.5 times and an industry average near 17.1 times, and around 14% under a DCF fair value of €97.86.
    • Analysts' consensus view looks for earnings growth of about 6.18% per year and a price target of €108.00, yet:
      • Five year earnings have declined by around 6.3% per year and the net margin step down from 2.6% to 2.1% shows profitability has not yet matched the growth assumptions.
      • The 2.85% dividend yield and forecast 2.6% annual revenue growth offer income and modest expansion, but they have to offset this weaker multi year earnings history for the rerating implied by €108.00 to play out.
    📊 Read the full HORNBACH Holding KGaA Consensus Narrative.

    Next Steps

    To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for HORNBACH Holding KGaA on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

    See the numbers in another light, turn that viewpoint into a concise narrative in just a few minutes, and shape the story yourself: Do it your way.

    A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding HORNBACH Holding KGaA.

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    HORNBACH's modest revenue growth, sliding net margins, and weaker five year earnings trend highlight how profit conversion is struggling to keep pace with the growth narrative.

    If you want steadier compounding than that, use our stable growth stocks screener (2105 results) to focus on companies already delivering consistent revenue and earnings momentum through different market conditions.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.