Financial Report Q1 2026: Record Q1 performance despite geopolitical uncertainty

Company announcement no. 66

Management commentary

REVENUE AND GROSS PROFIT

Hove delivered its strongest first quarter ever in Q1 2026, with revenue of DKK 81.2 million, representing growth of 42% compared with the same period last year. Growth was primarily driven by higher sales of pumps and grease to the wind turbine segment.

A stronger USD exchange rate (approx. +2%) also supported performance.

In Q1, Hove secured its second contract with a global port terminal operator and continues its focused sales efforts in this segment.

Gross profit increased to DKK 26.3 million, while the gross margin declined to 32.3% due to changes in the sales mix. EBITDA rose 36% to DKK 13.0 million, with a margin of 16.0%, reflecting strong revenue growth partly offset by higher external and staff costs related to organisational expansion.

KEY FIGURES

DKK million	Q1 2026	Q1 2025	Change	FY 2025
Revenue	81.2	57.2	42%	209.1
Gross profit	26.3	21.0	25%	72.7
EBITDA	13.0	9.6	36%	22.6
EBIT	12.5	9.2	35%	20.5
Net profit	9.8	7.0	40%	13.6

Hove’s solvency ratio amounted to 69% at the end of the quarter, and the Company therefore continues to maintain a strong capital structure and low financial risk.

CASH FLOWS

Cash flow from operating activities amounted to DKK 2.3 million, with strong EBITDA partly offset by higher working capital following revenue growth. Investing activities resulted in a cash outflow of DKK 0.5 million, while a DKK 3.0 million loan was raised in connection with the acquisition of the factory building in Holeby. Total cash flow for the quarter was positive at DKK 4.7 million.

SUBSIDIARIES

Subsidiaries delivered solid performance overall. The US subsidiary continued its growth despite market uncertainty, Hove India maintained its positive development, and Hove Turkey returned to growth. Hafnia Pumps is preparing the launch of its new Water Gear Pump.

INVESTMENTS

The investment programme is progressing as planned. The Holeby factory acquisition has been completed, with the automated grease filling facility expected to be operational in Q3 2026. The factory building in India is expected to be acquired in Q2 2026, with production start‑up also planned for Q3 2026.

ORGANISATION

The organisation continued to expand, with new sales resources added in the Middle East, the UK and Denmark, alongside additional development engineers to accelerate product development.

GUIDANCE

Due to the geopolitical situation, uncertainty regarding the high level of activity in Q1 2026 was driven by customers bringing purchases forward, as well as how current price increases will impact the remainder of the year, the Company maintains its current guidance as stated in company announcement no. 62 of 9 January 2026.

Revenue: DKK 210 – 240 million
EBITDA: DKK 22 – 29 million

 

Further information
Hans Christian Hansen
CEO
Email: investor@hove-as.dk

Company contact
Hove A/S
Herstedøstervej 7
DK - 2600 Glostrup
CVR 25804821
Web: www.hove-as.com

Certified advisor
HC Andersen Capital
ca@hcandersencapital.dk