D'Ieteren

Adjusted profit before tax reached €482.4m (+6.6% from €452.4m in H1 25), slightly below consensus expectation of €484m.

The performance was primarily supported by a very strong performance from Belron (+28.6% yoy to €308.2m) and PHE (+18.4% yoy to €106.8m) while D’Ieteren Automotive results were once again catastrophic (-66.6% to €36.4m due to negative volume and unfavourable price/mix effects. TVH (+16.9% to €44.2m) and Moleskine (-€4.7m vs -€7.6m last year) also improved significantly.

The FCF generation deteriorated again to €-4.1m (vs €9.9m last year and €540m in H1 24) due to PHE acquisitions notably.

The net debt level remains high at Belron level, still representing 4.3x adj EBITDA (vs 4.5x at end 2025) and increase slightly at the corporate level (€299.8m vs €286.8m at end-2025).

Group guidance was unchanged but appears downgraded for Auto, as the group does not expect improvement in H2, though this should be offset by higher adj operating profit in other businesses.

The group also announced that a potential IPO is under review as well as other exit options for minorities at Belron. The CEO Francis Deprez will be replaced in December by Eric Machiels, coming from OMERS, an investment firm, but he also has an experience of 8 years as CEO of Infinis Energy Plc which was briefly listed in London.

We thus expect a slight negative reaction due to the below consensus figures but reiterate our Buy recommendation on the name which could benefit from a potential Belron IPO improving valuation transparency.

The IPO of Belron is on everybody's mind as the FT previously reported that they were targeting a valuation of more than ERU30bn in an Amsterdam listing. We have a more cautious assumption with a EUR23.5bn valuation for the asset. And bear in mind that Belron represents 75% of D'Ieteren's GAV. Despite the strong share price performance, we still view some upside on the name. Bear in mind that the IPO will not bring in any cash to D'Ieteren, as only minorities (PE funds) are to sell part of their stakes (49.7%).   


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