Hoenle AG Shows Turnaround Progress Despite Market Challenges

Hoenle AG recently reported its Q3 FY25/26 results, demonstrating significant turnaround progress, despite earlier guidance cuts. Bottom-line improvements are evident, with EBITDA reaching €1.7 million, a 54.3% year-on-year increase, largely due to strong performances in Adhesive Solutions, which saw its EBITDA more than triple to €1.71 million, driven by growth in electronics and med tech.

The company's Disinfection segment also showed robust growth, with a 22.8% rise in sales to €7.5 million. However, the Curing division faced challenges, with EBITDA improving but remaining negative due to a weak investment environment and the insolvency of a key customer.

Overall, Hoenle's results highlight significant progress in cost reduction and margin improvement initiatives. The company remains focused on internal optimization, particularly in the Curing division, while capitalizing on growth in Disinfection and Adhesives. The stock maintains a 'BUY' recommendation with a target price of €14.