H+H International A/S Reports Strong Recovery in Q2 2026 with Increased EBIT and Cash Flow
H+H International A/S, the Danish leader in construction technology, recently released its interim financial report for the first half of 2026, highlighting a substantial recovery in its operations during the second quarter. Following a harsh winter that severely impacted the construction industry in Q1, the company has successfully implemented strategies that have led to a positive turnaround.
In the second quarter of 2026, H+H International recorded a significant improvement in its earnings before interest and taxes (EBIT) before special items, reaching DKK 43 million compared to DKK 24 million in the same quarter of the previous year. This remarkable growth can be attributed to a 6% increase in organic revenue growth and a 4% uptick in sales volume, driven primarily by strong performance in Poland. The company's gross profit before special items also saw an increase to DKK 165 million, maintaining a stable gross margin of 22%.
The improvements come on the heels of a comprehensive restructuring program initiated in Germany aimed at enhancing operational efficiencies. Chief Executive Officer Jörg Brinkmann noted that while the market conditions remain challenging, particularly in the UK, the benefits from these restructuring efforts are beginning to materialize, contributing significantly to the company's enhanced financial performance. Brinkmann stated, "We delivered the expected normalization in Q2 and improved EBIT before special items," emphasizing the company's resilience amid adversity.
In terms of cash flow from operating activities, H+H International reported a positive change, with DKK 107 million generated as opposed to a negative figure of DKK 19 million from the previous year. This surge in cash flow indicates a stronger operational footing as the company move forward within a competitive market landscape. Moreover, financial gearing has seen improvements, decreasing to 3.4 times EBITDA before special items at the end of Q2 2026, compared to 2.6 times a year earlier.
Despite the positive results, the outlook for the remainder of 2026 remains cautious. H+H International has maintained its revenue growth forecast, projecting a decline of 5% to a zero growth rate in local currencies. The company anticipates EBIT before special items to be in the range of DKK 50 to 100 million, indicating a continued focus on prudent fiscal management and operational efficiency as it navigates a complex market environment.
To discuss these results and the company’s future outlook in more detail, H+H International has scheduled a conference call for investors and analysts on August 12, 2026, at 10:00 a.m. CET. This session will not only convey more in-depth insights into the financial report but also allow participants to engage in a Q&A session with company executives.
As H+H International A/S moves forward, its commitment to adapting to market conditions while leveraging its restructuring measures suggests a strategic path to recovery and growth. The company's ability to overcome recent challenges stands as a testament to its resilience and forward-thinking approach within the construction sector.
Key Financial Highlights
In the second quarter of 2026, H+H International recorded a significant improvement in its earnings before interest and taxes (EBIT) before special items, reaching DKK 43 million compared to DKK 24 million in the same quarter of the previous year. This remarkable growth can be attributed to a 6% increase in organic revenue growth and a 4% uptick in sales volume, driven primarily by strong performance in Poland. The company's gross profit before special items also saw an increase to DKK 165 million, maintaining a stable gross margin of 22%.
Restructuring Efforts Paying Off
The improvements come on the heels of a comprehensive restructuring program initiated in Germany aimed at enhancing operational efficiencies. Chief Executive Officer Jörg Brinkmann noted that while the market conditions remain challenging, particularly in the UK, the benefits from these restructuring efforts are beginning to materialize, contributing significantly to the company's enhanced financial performance. Brinkmann stated, "We delivered the expected normalization in Q2 and improved EBIT before special items," emphasizing the company's resilience amid adversity.
Cash Flow and Financial Gearing
In terms of cash flow from operating activities, H+H International reported a positive change, with DKK 107 million generated as opposed to a negative figure of DKK 19 million from the previous year. This surge in cash flow indicates a stronger operational footing as the company move forward within a competitive market landscape. Moreover, financial gearing has seen improvements, decreasing to 3.4 times EBITDA before special items at the end of Q2 2026, compared to 2.6 times a year earlier.
Navigating Market Challenges
Despite the positive results, the outlook for the remainder of 2026 remains cautious. H+H International has maintained its revenue growth forecast, projecting a decline of 5% to a zero growth rate in local currencies. The company anticipates EBIT before special items to be in the range of DKK 50 to 100 million, indicating a continued focus on prudent fiscal management and operational efficiency as it navigates a complex market environment.
Upcoming Conference Call
To discuss these results and the company’s future outlook in more detail, H+H International has scheduled a conference call for investors and analysts on August 12, 2026, at 10:00 a.m. CET. This session will not only convey more in-depth insights into the financial report but also allow participants to engage in a Q&A session with company executives.
As H+H International A/S moves forward, its commitment to adapting to market conditions while leveraging its restructuring measures suggests a strategic path to recovery and growth. The company's ability to overcome recent challenges stands as a testament to its resilience and forward-thinking approach within the construction sector.
Topics General Business）
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