With roots back to 1851, Gabriel is today a niche company within the global furniture industry, which throughout the value chain, from idea to furniture user, develops, manufactures and sells furniture fabrics, components, upholstered surfaces and related products and services, through its business areas Fabrics, FurnMaster, SampleMaster and Screen Solutions. Gabriel sells B2B, and is growing with the largest market participants, working closely with leading international manufacturers and major users of upholstered furniture, seats and upholstered surfaces.
Gabriel Holding will report its Q3 2025/26 results on 26 August. We expect revenue from continuing operations to be up 4.5% y/y, but the growth reflects a soft comparison base rather than a sequential recovery, as our estimate is essentially flat on Q2. We look for only a marginal improvement in the EBIT margin. Our attention is primarily directed to the FurnMaster divestment, for which we seek clarity on the closing timetable and net proceeds, which we expect to be applied to reducing the group's financial gearing. We reiterate our Reduce recommendation and target price of DKK 270 ahead of the report.
Gabriel has agreed to sell the European FurnMaster operations, comprising the Polish and Lithuanian subsidiaries and the dedicated Aalborg division, to a Leggett & Platt subsidiary at an enterprise value of DKK 67.3m, plus a conditional deferred payment of up to DKK 7.5m. As we estimate the European part constitutes the majority of FurnMaster, we now value continuing operations alone and exclude FurnMaster entirely from our estimates, including the still-for-sale Mexican business, which we treat separately as a potential source of proceeds rather than earnings. This reflects management's strategic pivot towards developing the global textile business.
The Q2 2025/26 results confirm Gabriel's continuing operations are resilient in a challenging market, though the headline is weighed down by a steeper-than-expected FurnMaster revenue decline. Management's decision to maintain full-year continuing operations guidance of revenue MDKK 510-550 and EBIT MDKK 40-55, despite a softer Q2 in Europe and Asia, signals confidence in a stronger H2 as investments in new key account managers begin generating returns. Gross margins remain strong and the balance sheet is in its best shape in years, supporting the ongoing share buyback programme. We maintain our recommendation of "Accumulate" with a adjusted target price of DKK 280 per share, though we revise group estimates lower primarily on FurnMaster.
