Fielmann lowered its FY26 guidance, citing ongoing consumer weakness in Germany, which accounts for roughly 60% of group sales. Management now expects sales of EUR 2.50-2.55bn and adjusted EBITDA of EUR 560-580m. In our view, this announcement formalizes the warning signs evident in H1, confirming that a back-end-loaded recovery case was too ambitious. While the sales cut is modest and matches our earlier estimates, the earnings revision requires us to trim our EBITDA forecast. However, the long-term investment case, driven by international expansion and demographics, remains intact. We reiterate our BUY rating but lower our PT to EUR 64.00 (from EUR 68.00). The full update can be downloaded under https://research-hub.de/companies/fielmann-group-ag

Today´s SBO Q2 results came in slightly better than expected, with sales up 7.7% qoq to EUR 106.1m and the EBITDA margin at 12.0%, at the upper end of our 11-12% Q2 range. The key positive was Precision Technology, where stronger bookings are now beginning to convert into revenues and earnings, supported by higher utilization. In contrast, Energy Equipment remained the main drag, with continued Middle East-related disruption, weaker mix and Houston ramp-up costs weighing on profitability. Order intake remained robust and backlog increased further. We leave our 2026 estimates unchanged ahead of today’s conference call. BUY, PT EUR 38.00. The full update can be downloaded under https://research-hub.de/companies/sbo-ag

Mayr-Melnhof (MM) demonstrated operational resilience in H1 26, supporting earnings through its "Fit-For-Future" cost efficiency program despite persistent demand softness and pricing headwinds in European packaging markets. While reported revenue and net profit declined, partly reflecting the prior-year divestment of TANN, strong performances in the specialized packaging divisions helped stabilize operating margins. Significantly reduced working capital absorption drove a sharp rebound in operating and free cash flows. Looking ahead to H2 26, management faces cost inflation and planned maintenance downtimes, but ongoing structural savings, selective price adjustments and strategic initiatives like the Arnsberg mill acquisition support the medium-term outlook. Consequently, we only fine-tuned our estimates and confirm our BUY rating with a EUR 96.00 price target. The full update can be downloaded under https://research-hub.de/companies/mayr-melnhof-karton-ag

In H1 26, tonies delivered strong top-line growth driven by North America and robust Q2 demand across Tonieboxes and figurines, beating our estimates. While US tariffs and a higher share of lower-margin boxes temporarily squeezed profitability, the adj. EBITDA margin was roughly in line, while EPS missed due to warrant fair-value adjustments. Cash flow was the weak spot of the print, reflecting inventory build for product launches. Full-year guidance was reiterated, supported by expected H2 margin expansion and free cash flow reversion. We keep our estimates intact and confirm our BUY rating and PT EUR 17.25. On 25 August, tonies will present at the mwb German Select conference, please register here: https://research-hub.de/events/registration/2026-08-25-10-00/TNIE-GR The full update can be downloaded under https://research-hub.de/companies/tonies-se

HMS Bergbau has reported preliminary H1 2026 results, with revenue surging 71% year-on-year to EUR 1.1bn on strong trading across bulk products and liquid fuels. Underlying EBITDA rose to EUR 14.1m, broadly flat on a margin basis. Management has confirmed full-year guidance of EUR 2.0bn revenue and EUR 35m underlying EBITDA, with H2 supported by tighter margin discipline and first meaningful mining contributions from Maatla and HRV. Earlier, HMS increased its existing bond by EUR 25m to EUR 95m. We maintain our EUR 85.00 price target and BUY rating as HMS provides investors with unique exposure to emerging energy markets. The full update can be downloaded under https://research-hub.de/companies/hms-bergbau-ag

Order backlog anchors most of the bull case on European defense, yet it is the sector's least standardized metric. In our sector report we rebase five German defense names onto fixed backlog. On that basis ~EUR 28bn of the combined EUR 122bn headline backlog figure is not contracted revenue but frame volumes and estimates of business not yet won. TKMS sits on the right (conservative) side of that line. The EUR 20.6bn reported at the end of H1 FY2025/26 is contracted work only, with no framework volumes and no nominated platforms included, so the resulting 9.5x revenue coverage is the highest in our group. On the disclosure convention used by the widest reporter among peers, the same order book could screen at ~EUR 64bn (30x sales / +216%, mwb est.). BUY with an unchanged target price of EUR 140.00. The full update can be downloaded under https://research-hub.de/companies/tkms-ag-co-kgaa

Order backlog anchors most of the bull case on European defense, yet it is the sector's least standardised metric, with no common convention on what belongs in the figure. In this report we rebase five German defense names onto a single basis, fixed backlog. On that basis around EUR 28bn of the combined EUR 122bn headline figure is not a contracted revenue obligation but framework volumes and management estimates of business not yet won. The coverage ratios that carry most investment cases are therefore not comparable. At RENK, contracted backlog of EUR 2.9bn accounts for 38% of the EUR 7.5bn total backlog, with signed framework agreements adding a further 13% and the remaining 49% representing "soft backlog". The comparison has its limits, since a supplier is ordered after the prime contractor and can never carry the fixed backlog share of an OEM. PT EUR 48.00. HOLD. The full update can be downloaded under https://research-hub.de/companies/renk-group-ag

Deutsche Rohstoff delivered a strong operational and financial performance in Q2 26, with revenue surging by 53% yoy, driven by soaring crude oil prices and increased production. Even excluding one-off gains from Almonty share sales, Q2 EBITDA surged 76% yoy. Despite an accelerated capex program and dividend and share buyback payments in H1, cash and marketable securities have almost doubled since the beginning of the year, reaching EUR 133m, bolstered by the sale of Almonty shares. With a net debt/LTM EBITDA leverage ratio of just 0.4x, Deutsche Rohstoff has the flexibility to adapt its drilling program in response to volatile market conditions. Trading at a forward EV/EBITDA multiple of under 2x, Deutsche Rohstoff shares remain significantly undervalued and offer substantial upside potential. Recommendation: BUY. Price target: EUR 128.00. The full update can be downloaded under https://research-hub.de/companies/deutsche-rohstoff-ag

Order backlog anchors most of the bull case on European defense, yet it is the sector's least standardised metric, with no common convention on what belongs in the figure. In this sector study we rebase five German defense names onto fixed backlog. On that basis ~EUR 28bn of the combined EUR 122bn headline is not a contracted revenue obligation but framework volumes and management estimates of business not yet won, which makes published coverage ratios incomparable across the group. Hensoldt sits on the right side of that line. The EUR 10.3bn reported is fixed work only (coverage of 4.1x). The question at Hensoldt is therefore not what the backlog is worth but what it converts into. We remain cautious on the exposure to armoured vehicle programmes and on a software defined defense share guided at only 8% by 2030. Unchanged at SELL, PT EUR 62.00. The full update can be downloaded under https://research-hub.de/companies/hensoldt-ag

Rheinmetall’s (RHM) backlog leaves little doubt that the European defense spending cycle is accelerating and that RHM profits from it. However, medium-term consensus appears to imply an increasingly demanding backlog conversion profile, leaving limited room for execution delays or programme slippage. Of the EUR 80.5bn reported backlog, EUR 30.2bn of fixed orders are scheduled for conversion within 2.5 years. This fully covers consensus through 2027 but leaves 2028 heavily dependent on orders that have not yet been signed. Including frame backlog, 77% of 2028 consensus sales are not covered by the current order backlog (if we exclude the riskier “frame backlog” part the gap is 90%). We believe consensus is too optimistic on the speed at which spending translates into Rheinmetall revenues. OEM-supplier Steyr confirmed this at the beginning of the week by significantly lowering their mid-term guidance. Recent German procurement indications add to this concern, particularly for ammunition and combat vehicles, underlining our analysis. PT unchanged at EUR 1050.00. SELL. The full update can be downloaded under https://research-hub.de/companies/rheinmetall-ag