H+H narrows 2026 guidance as UK and Germany drive 9% fall in sales volumes

H+H International A/S, the Danish parent of UK aircrete block maker H+H UK, reported a 9% fall in group sales volumes for the third quarter of 2026, with the UK and Germany driving the decline.

The company published its Q3 2026 interim report on 10 November as company announcement No. 12/2026. Revenue measured in local currencies fell 3%, against growth of 2% in the same quarter of 2025.

Despite the lower volumes, EBIT before special items rose to DKK 56m from DKK 53m a year earlier, taking the EBIT margin before special items to 8% from 7%. Gross profit before special items was DKK 172m, down from DKK 179m, with the gross margin unchanged at 24%.

Jörg Brinkmann, Chief Executive Officer of H+H International A/S, said: "Activity in the UK and Germany remains low, but successful cost pass-through protected our margins."

The numbers

Cash flow from operating activities before financial items and tax fell to DKK 69m from DKK 115m in Q3 2025. Financial gearing stood at 3.3 times EBITDA before special items at the end of the quarter, down from 3.4 times at the end of Q2 2026 but up from 2.5 times a year earlier.

Asset sales generated net proceeds of DKK 7m in the quarter and DKK 56m over the first nine months of 2026, the company said.

H+H narrowed its full-year guidance at both ends. It now expects organic revenue growth of between -4% and -1%, against a previous range of -5% to 0%, and EBIT before special items of DKK 65m to 85m, against DKK 50m to 100m previously. The wider ranges had been in place at the half-year stage.

The quarter continues an improving profit trend on a year-on-year basis. In its H1 2026 report, H+H recorded EBIT before special items of DKK 43m for the second quarter, against DKK 24m in Q2 2025.

Quarter	EBIT before special items (DKK m)
Q2 2025	24
Q3 2025	53
Q2 2026	43
Q3 2026	56

UK plants

H+H UK describes itself as a manufacturer of aircrete building products with factories in Kent and East Yorkshire, and says it has supported the UK construction industry since 1949. The group's main product lines are aircrete blocks and calcium silicate units for the residential new-build segment, and its 2025 revenue was DKK 2.7bn.

The UK's weakness is not new in the company's reporting. In its H1 2026 report, H+H said it had adjusted shift systems at its UK plants to reflect near-term market challenges.

In Germany, the company announced in July 2025 that it was reorganising its operations from national coverage to a regional setup, including plant closures and asset write-downs. It said at the time that its Q2 2025 report would carry asset impairments of around DKK 600m, with restructuring costs of DKK 80m to 100m expected as special items in the second half of 2025.

Brinkmann said the HOME programme had achieved its best production performance since launch and that the German restructuring was delivering as intended.

Your First Home

Brinkmann pointed to UK housing policy as a reason for longer-term confidence. He said: "While inflation remains a key challenge, the new Your First Home programme in the UK and the structural need for new housing in our markets give us confidence in the long-term prospects of H+H."

Your First Home is a government scheme to help first-time buyers in England purchase a new-build home. According to the Ministry of Housing, Communities and Local Government, buyers need a deposit of at least 2.5% of the purchase price and receive a government equity loan worth 20% of the price, interest free for five years. Eligibility requires a household income of £110,000 or less outside London, or £140,000 or less in London, and the home must fall within a local price cap.

The government announced the scheme on 26 September 2026, saying it would act as a stimulus to support the market and boost housing supply. Developers will be expected to make a contribution towards costs when signing up.

GOV.UK's timetable puts the first customer applications in February 2027 and the first property sales under the scheme in April 2027.

Leadership change

The Q3 report comes as Brinkmann prepares to leave the company. In an announcement dated 28 September 2026, H+H said he had notified the board of his resignation as CEO and would leave during the first quarter of 2027.

The board appointed Christian Sieg, who joined H+H in January 2026 as Managing Director Central and Western Europe, as Deputy CEO with immediate effect and a member of the Executive Board. He is expected to become CEO once Brinkmann leaves.

H+H will hold a conference call for investors and analysts on the Q3 report on Wednesday 11 November 2026 at 10:00 CET.