Original-Research: MBB SE (von Quirin Privatbank Kapitalmarktgeschäft): Buy

Classification of Quirin Privatbank Kapitalmarktgeschäft to MBB SE

Company Name:	MBB SE
ISIN:	DE000A0ETBQ4
Reason for the research:	Update
Recommendation:	Buy
from:	23.07.2025
Target price:	246.50
Last rating change:
Analyst:	Ralf Marinoni

Increase of FY 2025 guidance
MBB published strong KPIs for the first half of the current business year: Based on preliminary figures, revenue exceeded the previous year's figure by 16.8% to EUR 545.5m. The company achieved a disproportionately high adjusted EBITDA increase of 36.8% to EUR 76.4m in the H1-25 period compared with the previous year. The adjusted EBITDA margin thus increased significantly by 2.1 percentage points to 14.1%.

In the second quarter, the adjusted EBITDA grew by 40.3% to EUR 46.5m compared to the previous year and therefore significantly stronger than sales, which increased by 9.2% to EUR 285.5m. The adjusted EBITDA margin thus reached 16.4%. The main driver of this development is the strong operating performance at Friedrich Vorwerk and DTS. Friedrich Vorwerk announced to have generated an EBITDA of EUR 54.5m in the first half of 2025, more than doubling the previous year's figure of EUR 24.4m. Revenue rose by 56% to EUR 303m in the same period. The EBITDA margin thus increased by more than 5 percentage points to 18.0%. As a result, Friedrich Vorwerk increased its FY 2025 guidance: Vorwerk now expects revenue of EUR 610-650m, compared with the previous forecast of revenue at the upper end of the range of EUR 540-570m. In addition, the management is raising its EBITDA margin forecast to 17.5-18.5%, which had previously been expected to be in the range of 16-17%.

MBB: the group's net liquidity at the end of the second quarter amounted to EUR 457.4m (31 December 2024: EUR 553.9m), of which EUR 292.0m was attributable to the holding company MBB SE (31 December 2024: EUR 280.8m). The war chest is therefore well filled to finance further external growth.

New guidance: MBB expects to achieve its forecast of EUR 1.0 to EUR 1.1bn in revenue with an adjusted EBITDA margin between 11 and 14%, now each at the upper end of the range. Due to the prel. H1-25 figures, this outlook is far from being aggressive.

We increase our TP to EUR 246.50 (EUR 200.00), based on a sum-of-the-parts approach. The increase in the target price reflects in particular the rise in the share price of the subsidiary Friedrich Vorwerk. Our recommendation remains Buy.

You can download the research here: MBB_SE_20250723k
For additional information visit our website: https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/