Original-Research: Hoenle AG (von NuWays AG): BUY

Classification of NuWays AG to Hoenle AG

Company Name:	Hoenle AG
ISIN:	DE0005157101
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 15
Target price on sight of:	12 months
Last rating change:
Analyst:	Sarah Hellemann

Q1 25/26: Ahead where it matters, waiting on market momentum

Yesterday, Hoenle released its Q1 (Oct - Dec) figures for FY 25/26 with a stronger than expected bottom-line. In detail:

Revenue came in flat-ish yoy at € 21.5m, slightly below expectations (eNuW: € 22.2m). A weakness in Curing stemming from a sustained customer reluctance to invest was largely compensated by strong growth in Disinfection. Adhesives developed in line with expectations.

EBITDA remained ahead of expectations (eNuW: € -0.1m) and came in at € 0.5m (-49% yoy). Stronger than anticipated developments in Disinfection and a positive contribution from Adhesives partially mitigated slower demand in Curing, exchange rate differences, material cost inflation. Higher marketing expenses are expected to result in higher sales in following quarters.

Disinfection beat estimates with 18% yoy sales growth to € 6.7m (eNuW: € 5.7m) and a 91% yoy jump in EBITDA contribution, which stood at € 1.0m (eNuW: € 0.7m). Key driver was a strong end-market demand, especially for water disinfection systems.

Adhesives performed flat-ish, despite a negative effect from exchange rate differences with a revenue contribution of € 8.1m, slightly ahead of expectations (eNuW: € 8.0m). Higher medical demand offset weaker Curing-related adhesive demand. Adhesives delivered a positive EBITDA contribution of € 0.8m slightly ahead of expectations (eNuW: € 0.7m), but at -33% yoy.

Curing showed a particularly weak performance with revenue falling by 13% to € 6.6m (eNuW: € 8.5m), due to low investment activity of customers. Reflecting this circumstance and despite restructuring efforts taken in 2025, EBITDA came in at € -1.2m (eNuW: € 0m).

Currently at an inflection point, Hoenle showed further improvements. Decreasing trade receivables resulted in a positive operating cash flow of € 0.2m, ahead of € -0.6m in the previous year. Slight deleveraging raised the equity ratio from 52.9% to 53.3%. Hoenle showed improved confidence for H2 2026 on account of market expansion plans through partnerships in North America and India as well as efforts to boost after-sales activities. Further cost-cutting measures should additionally support the bottom line.

Looking to FY 25/26, we expect growth across segments to support a 4.8% yoy rise in revenue to € 98.2m (eNuW). Disinfection is supported by strong tailwinds and an increasing interest in their water purification solutions. While customer investments have been low for some time, there are growth opportunities in stronger after-sales activities (i. e. changing to LED ahead of regular replacement cycles) and in assisting in extending equipment lifecycles. Key catalyst remains a recovery of CAPEX-investments among customers, with improvements indicated by VDMA (+1% yoy growth for 2026). Adhesives should profit from stronger Curing sales and end market demand, i. e. in medical.

With top-line growth ahead, right-sizing efforts from 2025 starting to show and further cost control expected, EBITDA should rise by 22% yoy to € 7.1m. The confirmed guidance of € 95-105m (eNuW: € 98m) in revenue and € 6-9m in EBITDA appears achievable. Maintaining BUY with a PT of € 15.
 

You can download the research here: dr-honle-ag-2026-02-25-update-en-83b82
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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