Automatic translation: Originally published in undefined 26/08/2026, 10:06 GMT. Give feedback here.

Gabriel has released its Q3 2025/26 financial report this morning, covering the period from April 1 to June 30, 2026. Revenue from continuing operations largely hit our estimate, while earnings came in marginally above our estimate. At the same time, the full-year guidance has been narrowed, and there is now further clarification regarding the sale of the European FurnMaster business, which was completed on August 14.

Revenue from continuing operations in the quarter was DKK 133.0m vs. DKK 128.6m in the same period last year, corresponding to a growth of 3%. Our estimate was DKK 134m, or a growth of 4.5%. As expected, the growth is driven by a lower comparison basis, and revenue is on par with the DKK 134.1m in Q2 2025/26. There was progress in both Europe and North America, while Asia landed on par with the same period last year. Management continues to describe the conditions for growth in the global textile business as unchanged negative – particularly in Europe and Asia – while the market trend in the US has been slightly increasing.

EBITDA for the quarter was DKK 22.3m vs. DKK 20.7m last year, while EBIT came in at DKK 11.9m vs. DKK 10.9m. This corresponds to an EBIT margin of 9.0% compared to 8.4% in Q3 2024/25. We had expected an EBITDA of DKK 21.5m and an EBIT of DKK 11.5m, corresponding to an EBIT margin of 8.6%. After 9 months, the gross margin in continuing operations has risen to 55.2% (54.7%), which the company attributes to a favorable shift in the customer and product mix.

Profit before tax was DKK 11.5m in the quarter vs. DKK 4.6m last year and our estimate of DKK 10.3m. The improvement stems primarily from net financials, which after 9 months were reduced to an expense of DKK 3.0m vs. DKK 10.5m as a result of decreased debt obligations and foreign exchange gains. EPS from continuing operations was DKK 4.4 in the quarter (DKK 1.0) vs. our estimate of DKK 4.05.

Gabriel narrows its full-year guidance for continuing operations to revenue of DKK 528-532m (originally DKK 510-550m) and an EBIT of DKK 44-46m (originally DKK 40-55m). The revenue range has been narrowed around the midpoint of the original guidance and is just below our estimate of DKK 535m, while the EBIT range is below both the midpoint of the previous guidance and our estimate of DKK 48.1m. The new guidance implies Q4 revenue of DKK 132-136m and an EBIT of DKK 9.4-11.4m, corresponding to an EBIT margin of approx. 7-9%. This is lower than in Q3, meaning that Q4 will not be the strongest quarter of the year, as our estimate assumed.

The sale of FurnMaster in Europe to Leggett & Platt was completed (closing) on August 14, i.e., after the balance sheet date. The total initial purchase price (Enterprise Value) has been agreed at DKK 67.3m (~EUR 9m), and Gabriel now reports an estimated equity value of DKK 76.9m, in addition to the possibility of a contingent deferred cash payment of up to DKK 7.5m (~EUR 1m). The proceeds will be used to reduce interest-bearing debt obligations.

As the realised sales value is considered an adjusting event, goodwill attributed to the business unit – from the acquisition of Screen Solutions in 2016 – has been written down by DKK 22.0m as of the balance sheet date. The markdown does not affect liquidity. In addition, the tax asset in Mexico has been written down by DKK 4.4m.

Total profit after tax from discontinued operations was DKK -39.6m after 9 months vs. DKK -6.2m last year, while FurnMaster sales fell 31% to DKK 210.1m. The Mexican FurnMaster business is not part of the transaction, and a renewed sales process has been initiated with a view to selling the unit.

Gabriel has previously initiated a share buyback program, and the holding of treasury shares amounted to 59,462 shares after 9 months.

We will review the financial report in more detail and return with an update to our estimates and recommendation.

Reminder that tomorrow – Thursday, August 27 at 10:00 AM – we are hosting an event with Gabriel, where CEO Anders Hedegaard Petersen will take us through the financial report and answer questions from the audience. Sign up here: https://www.inderes.dk/videos/gabriel-praesentation-af-regnskabet-for-3-kvartal-202526

You can find Gabriel's full quarterly report here: https://www.gabriel.dk/investor/announcements-and-presentations/

Disclaimer: HC Andersen Capital receives payment from Gabriel for a Digital IR subscription agreement and a research agreement. /Rasmus Køjborg, CFA at 11:55 AM on Aug 26, 2026.