Hönle AG (HNL) reported a sharp improvement in profitability for the third quarter of fiscal 2025-2026, with EBITDA rising 240% year-over-year to EUR 1.7 million despite broadly flat sales.
Revenue for the quarter reached EUR 23.7 million, a 4.9% increase from EUR 22.6 million in the same period last year. The EBITDA margin expanded to 7.3% from 2.2% in Q3 2025, driven by a 35.9% material cost ratio—down from 37.6% a year earlier—and a EUR 0.6 million reduction in other operating expenses.
For the first nine months of the fiscal year, revenue totaled EUR 69 million, roughly 1% below the prior-year period. EBITDA climbed 26% to EUR 4.5 million, while EBIT returned to positive territory at EUR 0.4 million. Operating cash flow increased 23% to EUR 4.6 million, fully covering investing outflows of EUR 1 million. Financing activities consumed EUR 2.7 million, primarily for debt repayments, leaving the group with EUR 7.2 million in cash at quarter-end and net financial debt of EUR 37.4 million—down EUR 1 million from the prior year and EUR 12 million since 2021-2022.
The Adhesive Systems unit led performance, with revenue up 6.8% to EUR 26.6 million and EBITDA rising significantly. The Curing unit faced headwinds, with revenue down nearly 19% to EUR 20.9 million and EBITDA at minus EUR 2.2 million, reflecting weak industrial investment and lower demand from Manroland Sheetfed following its insolvency. Water Disinfection revenue grew 12.6% to EUR 21.5 million, supported by UV lamp sales and semiconductor applications.
Management maintained full-year guidance for revenue between EUR 92 million and EUR 95 million and EBITDA of EUR 5 million to EUR 6 million. CEO Dr. Franz Richter noted that profitability gains were achieved despite investment reluctance, while CFO Robert Stark highlighted the 23% rise in operating cash flow and a 6.2% reduction in long-term debt.
The company’s equity ratio stood at 53%, with a current ratio of 1.71. Shares were unchanged at USD 7.94, trading within a 52-week range of USD 6.48 to USD 10.40, according to InvestingPro metrics.
