#Denmark #Copenhagen #UK Market #H+H International #Jörg Brinkmann

H+H International Revises Financial Outlook for 2025

H+H International recently announced a significant adjustment to its financial forecast for 2025, attributing this change to an unexpected slowdown in the construction market in the United Kingdom. With the previous projections indicating an organic growth of around 4%, the company now expects this figure to hover around 0%. This downgrade comes alongside a reduced projected EBIT range, now estimated at DKK 85–115 million, down from the original estimate of DKK 100–150 million.

Overview of the Adjustment

This revision emerges as H+H CEO Jörg Brinkmann disclosed a notable shift in market dynamics affecting the organization's trajectory. Despite initial expectations that the year's performance would align with previous forecasts following a steady Q3, recent activity has shown a decline in order volumes and an overall downturn in housing sales across the UK, which are critical for H+H's operations.

The preliminary financial results for Q3 were released and reported organic growth at 2% and revenue reaching DKK 738 million. The gross profit before special items stood at DKK 179 million, translating into a gross margin of 24%. Although these figures reflect positive performance for the year’s first three quarters, the downturn in the latter part of October has led to an urgent reassessment of H+H’s expectations.

The Implications of Market Changes

The changes reported are primarily driven by a general slowdown in sales rates among UK housebuilders. Statistics showcased a sharp decline in new home sales, pushing builders to reconsider starting new projects in a bid to manage high inventory levels accumulated from a previous phase of robust construction activity. This sudden shift has major implications for companies like H+H that derive substantial business from the housing market.

The CEO indicated that initial outcomes from a reorganization program in Germany seem promising, providing some optimism amidst the UK's challenging market conditions. Notably, performance in Poland has remained stable, suggesting potential for growth in other sectors even as the UK market contracts. However, unless UK market dynamics shift back towards positive growth, the anticipated economic conditions will significantly impact H+H’s operations and profitability.

Future Steps and Conference Call Announcement

In light of these developments, H+H is set to conduct a comprehensive conference call on November 12, 2025, for investors and analysts, with the complete Q3 report to be made available shortly before this date. This call aims to clarify the impacts of the recent slowdown on future strategies and financial planning, providing stakeholders with the latest insights on the company's direction amid changing market conditions.

As H+H navigates through these turbulent waters, industry observers and investors will be keenly watching its next moves to ascertain how well it can weather the challenges posed by the current economic environment in the UK.

For further inquiries, H+H's Investor Relations contact, Niclas Bo Kristensen, remains available for detailed communications regarding these significant shifts in the company's operational landscape.