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.
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.
Gabriel Holding will report its Q2 2025/26 results on Thursday, May 7, 2026. We expect the group results to show a continued revenue decline y/y, driven entirely by the ongoing FurnMaster wind-down, while continuing operations should demonstrate sustained growth from the key account strategy. We estimate that the EBIT margin in Q2 will expand slightly, despite being at a similar level in absolute terms, reflecting operating leverage in the continuing business, and a less negative effect from FurnMaster. Our recommendation remains Accumulate with a target price of DKK 270 per share.
Gabriel has pre-announced its preliminary FY’24/25 results ahead of the annual report on 20 November 2025, confirming stronger-than-expected performance in the core continuing operations, while the FurnMaster unit again weighs on the group result. The preliminary figures show continuing operations revenue of DKK 516m (+6.8% y/y) and EBIT of DKK 44m (8.5% margin), exceeding the latest guidance of DKK 35-40m. At the same time, the pre-announcement reveals a deeper-than-expected full-year EBIT loss of DKK 16m in FurnMaster, underlining the operational and strategic challenges in the discontinuing operations as the carve-out process continues. The early release of results reduces uncertainty around the turnaround in the core business but also reinforces known risks tied to FurnMaster’s performance and valuation.
Following the preliminary full year 2024/25 results, Gabriel is building confidence in its turnaround, after a cyclical market downturn, and restructuring of its FurnMaster (discontinuing) Mexican subsidiary. Execution in the core continuing operations remained solid with revenue growth of 6.7% y/y to MDKK 516, and EBIT margin expansion of 4.4 p.p. to 8.5% from 4.1% in 2023/24, despite ongoing macro headwinds. However, the FurnMaster unit remains uncertain with an implied negative full-year EBIT of MDKK -16 for 2024/25, and uncertainty relating to the carve-out and development of tariffs. In our view, a valuation of EV/EBIT 11.6x for 2025/26E does not favor short-term risk/reward, given FurnMaster’s ongoing weaker performance, carve-out uncertainty, and lingering market weakness. We reiterate our Reduce recommendation and slightly raise our price target to DKK 210/share.
Following the Q3 2024/25 results, Gabriel is building confidence in its turnaround, after a cyclical market downturn, and restructuring of its FurnMaster (discontinuing) Mexican subsidiary. Execution in the core continuing operations remained solid with Q3 growth of +5% y/y, and margin expansion, despite macro headwinds. However, the FurnMaster unit had not returned to positive EBIT as expected, showing stabilization rather than rebound. In our view, a current valuation of EV/EBIT 23.9x for 2024/25e does not favour short-term risk/reward, given ongoing carve-out uncertainty and still short-lived growth and margin recovery. We reiterate our Reduce recommendation and slightly raise our price target of DKK 200/share.
Following the Q2 2024/25 results and subsequent guidance upgrade, Gabriel is beginning to distance itself from the challenges seen in 2023 and 2024. This rebound is being driven by improving operating leverage in Fabrics and SampleMaster (continuing) and a return to profitability in FurnMaster (discontinuing). Still, we remain cautious: the carve-out process is incomplete, macro conditions remain mixed, and Gabriel’s ability to sustain earnings momentum beyond FY24/25 is not yet proven. We restate our “Reduce” recommendation but raise our price target to DKK 190/share and look for the full Q3 report for details on the sustainability of the recovery.
