Germany's Villeroy & Boch nine-month revenue falls 11.1%

Overview

• Germany ceramics maker's nine-month revenue fell 11.1% yr/yr, impacted by divestments and currency effects

• Operating EBIT for nine months declined yr/yr, reflecting divestments and market headwinds

• Company confirmed adjusted full-year forecast despite volatile market environment

Outlook

• Villeroy & Boch expects 2026 revenue to decline in the higher single-digit percentage range

• Company forecasts 2026 operating EBIT between €50 mln and €56 mln

• Villeroy & Boch sees 2026 return on net operating assets at 5.5% to 6.5%

Result Drivers

• GEOPOLITICAL TENSIONS AND WEAK CONSTRUCTION - Co said revenue in Bathroom & Wellness division was hit by geopolitical tensions and weak construction activity, especially in EMEA and APAC/Americas

• E-COMMERCE AND NEW PRODUCTS - Dining & Lifestyle division revenue growth driven by e-commerce and new products, per division director

• ORDER BOOK INCREASE - Co said orders on hand rose, providing foundation for future quarters

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Villeroy & Boch AG is €20.75, about 82% above its October 26 closing price of €11.40

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Oct 26 - Germany's EDAG Engineering prelim 9M revenue falls on automotive customer restructuring, cuts FY26 outlook

• Oct 27 - Beiersdorf Q3 sales growth slightly misses expectations as Nivea weighs

• Oct 26 - German business sentiment rises for the sixth consecutive month, Ifo says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)