Delticom AG: Focus on Profitability Bears Fruit Amidst Challenges

Delticom AG has shown substantial improvements in profitability in the first half of 2026, as revealed in a recent research update by Quirin Privatbank Kapitalmarktgeschäft. The company's gross margin increased to 24.9%, with EBIT turning positive. Notably, Q2 2026 EBIT surged by 330% year-on-year and EBITDA rose by 19%. Operating cash flow shifted from a negative EUR 4.6m to a positive EUR 4.9m, strengthening the balance sheet with an equity ratio of 23.7%.

The implementation of efficiency measures, automation, and AI has effectively reduced costs. However, sales faced challenges as European consumers remained cautious, leading to a year-on-year decline of 8.9%, down to EUR 461m. Despite this, Q2 2026 Group EBITDA increased to EUR 4.6m, contributing to a trailing twelve-month EBITDA of EUR 20.2m.

The company maintains its sales forecast of EUR 480-520m and operating EBITDA of EUR 19-24m. As the winter season approaches, Delticom AG anticipates strong margins and a return of new customers. Quirin maintains a BUY rating with a revised target price of EUR 3.60, influenced by rising interest rates.