Gn Store Nord A/s Stock Earnings Reports

GN reported a mixed Q1: continuing operations delivered organic revenue decline of 4% driven by weak demand and channel inventory reductions in EMEA, while North America and APAC showed double-digit organic growth in core Enterprise. The new Evolve3 headset family launched in March and has been well received, driving strong growth in the premium headset segment (>50% growth YoY in Q1 for premium headsets) and expected to contribute more materially in H2 as the product family is extended. Gaming showed resilience with market-share gains, modest revenue decline (-1% organic) and an improved divisional profit margin (11%) despite tariff headwinds. Gross margin was softer (48.2% for continuing operations) due to annualized tariffs and a ~1 percentage point impact from a U.S. warehouse inventory provision; management expects gross margins to stabilize and improve from Q2. The Hearing division (now discontinued) performed well (9% organic growth) and is being divested to Amplifon; GN expects the transaction to close toward year-end. Proceeds will include cash and Amplifon shares; GN plans to target leverage of 1–1.5x EBITDA after closing and to return the majority of excess cash to shareholders via a buyback program (using existing authorization up to ~6.5% additional treasury shares) and reinstated dividends. GN expects one-off cash costs of DKK 750m (75% in 2026) for the carve-out and DKK 200m in structural cost savings initiatives in 2026 that will drive ~2 percentage points of margin uplift in 2027. For continuing operations GN guides 2026 adjusted EBITA margin of 8–9% and updated organic revenue growth guidance of 0–6% (Enterprise: –3% to +3%; Gaming: +7% to +13%).