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H+H International's Q1 2026 Interim Financial Review

On May 12, 2026, H+H International A/S disclosed its Q1 2026 interim financial report amid challenging market conditions. CEO Jörg Brinkmann addressed the company's performance during a particularly harsh winter season that notably affected construction activities, customer demand, and the utilization of plants.

Weather's Impact on Operations

During the initial months of the year, extreme winter weather hampered construction progress and negatively impacted client demand. This resulted in significant setbacks for H+H, leading to a 15% decline in organic revenue growth compared to the previous year, emphasizing the adverse effects of the weather conditions.

Financial Performance Overview

The figures highlighted in the report presented stark contrasts compared to Q1 2025:

• - Gross Profit: DKK 73 million versus DKK 146 million in 2025, reflecting a drop in gross margin from 22% to 13%.
• - EBIT: Witnessed a negative shift from positive DKK 16 million last year to a loss of DKK 43 million this quarter, leading to an EBIT margin drop from 2% to -8%.
• - Financial Gearing: Increased significantly, recorded at 4.1 times EBITDA before special items, up from 2.7 times in Q1 2025.

Despite these unfavorable outcomes, the financial outlook for 2026 remains unchanged, with management anticipating revenue growth within the range of -5% to 0%. Moreover, expectations for EBIT before special items are projected between DKK 50 and 100 million.

Recent Recovery Signs

However, there arose signs of improvement in business activities post-March 2026. As the winter season ended, local sourcing and robust hedging strategies contributed to a recovery in operational momentum. Jörg Brinkmann pointed out that ongoing geopolitical situations, particularly concerning energy markets, are continually monitored, affecting their strategy and response.
The performance in Poland and the UK reportedly met expectations, while the management is focused on bolstering operations in Germany gradually.

Looking Ahead

H+H International remains resilient in the face of these challenges, with a commitment to operational improvements to regain momentum throughout 2026. The company is set to host a conference call on May 13, 2026, to brief investors and analysts on these developments, underlining their transparency amid difficult performance periods.
The road to recovery, though rocky, appears to be taking shape, reinforcing confidence that the remainder of 2026 could present opportunities for robust recovery.

As the construction landscape evolves, H+H International's strategies and performance will be closely watched, particularly in light of the ongoing weather challenges and market dynamics. Investors and stakeholders alike await fresh insights from the upcoming conference call, hopeful for a clearer vision of the company's path forward.