Core Viewpoint - TCM Group anticipates moderately positive market developments in 2026, driven by improving consumer confidence and strong housing sector sales, although growth in the B2C kitchen market is expected to be modest [1][2]. Group 1: Financial Outlook - TCM Group estimates revenue for the financial year 2026 to be in the range of DKK 1,400-1,500 million [3]. - Adjusted EBITA for 2026 is estimated to be in the range of DKK 120-140 million, with a focus on this figure as a better reflection of underlying profitability [3]. Group 2: Strategic Initiatives - The company plans to fully integrate Celebert ApS into its operations and maximize the value of its new lacquering facility while rolling out a new ERP platform [2]. - Priorities for 2026 include gaining market share in the B2C segment and B2B2C elements, driving operational efficiencies, and maintaining leadership in sustainability [2]. Group 3: Market Conditions - Consumer confidence is gradually improving, albeit from a low level, and the B2B market shows signs of improvement, though it is expected to remain below historical levels [1]. - The market for larger building projects is anticipated to benefit from lower interest rates, leading to increased housing construction activity [1]. Group 4: Company Overview - TCM Group is Scandinavia's third-largest kitchen manufacturer, primarily operating in Denmark with exports to Norway, and offers a range of products including kitchens, bathroom furniture, and storage solutions [4]. - The company employs a multi-brand strategy, with its main brand being Svane Køkkenet, and markets products through franchise stores and independent kitchen retailers [4].

Core Insights - The company reported improved earnings and steady sales growth in Q2 2025, with total sales increasing by 5% year-on-year to DKK 349 million, and organic growth of 3% [1][8] Sales Performance - Sales growth was observed in both B2B and B2C segments, although order intake slowed in the second quarter, particularly in the B2C segment due to weakening consumer confidence and retail spending [2] - The B2B segment saw a decline in project orders, while orders from housebuilders showed a positive trend [2] Financial Metrics - The gross margin increased to 23.7% in Q2 2025, up from 21.5% in Q2 2024, attributed to higher average selling prices and stable input costs [3] - Adjusted EBIT rose by 20% from DKK 28.0 million in Q2 2024 to DKK 33.6 million, with an adjusted EBIT margin of 9.6%, compared to 8.4% in the same period last year [3][8] - Free cash flow improved to DKK 32 million in Q2 2025 from DKK 26 million in Q2 2024, driven by higher earnings and improved net working capital [4][8] Strategic Developments - The company agreed to acquire the remaining 55% of online retailer Celebert ApS, following the majority shareholder's decision to exercise its put option, indicating confidence in Celebert's growth trajectory [5] - Full-year revenue guidance for 2025 has been narrowed to DKK 1,250–1,300 million, with adjusted EBIT expected in the range of DKK 90–110 million [6]