Q2 2026 GN Store Nord A/S Earnings Call Transcript
Key Points
- GN Store Nord AS (GGNDF) upgraded its adjusted EBITA margin guidance for 2026, reflecting healthy gross margin improvements and a clear path to the 9%-10% target.
- The launch of ReSound Sensia, the world's smallest AI hearing aid, strengthens the hearing portfolio and has received encouraging initial customer feedback and pre-orders.
- The Evolve3 portfolio expansion, covering 50% of the enterprise business, is driving strong sell-out growth in premium headsets and setting the stage for a return to growth in H2 2026.
- SteelSeries achieved the number one global brand position in gaming headsets, supported by strong market share gains and successful product launches like the Nova Pro Omni.
- The planned sale of the hearing business to Amplifon is on track for closing by end of 2026, with proceeds expected to enable significant shareholder distributions through buybacks and dividends.
- Gross margins improved strongly in Q2 across both Enterprise and Gaming, driven by pricing discipline, product mix, and lower tariffs, with expectations for continued strength in H2.
- GN Store Nord AS (GGNDF) narrowed its 2026 revenue guidance to the lower half of the range, citing muted market conditions and reduced upside scenarios, particularly in the FalCom defense business.
- Enterprise organic revenue declined 7% in Q2, with EMEA continuing to show weakness, though with signs of improvement; excluding FalCom, growth was still negative at 3%.
- Free cash flow was negative DKK616 million in Q2 due to temporary working capital increases from in-sourcing logistics, which is expected to normalize later in the year.
- The hearing business faced significant headwinds from a major US retailer reducing supplier count, impacting growth, though the company expects a rebound with the Sensia launch.
- Gaming mice sales were challenged in Q2 due to an aging product portfolio, and the company adjusted its full-year gaming outlook to the lower end, reflecting a muted consumer environment.
- The company expects a back-end-loaded year with Q3 as a turning point, implying continued near-term revenue pressure and uncertainty around channel inventory levels in EMEA.
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Hello everyone, and welcome to GN's conference call in relation to our Q2 report announced yesterday evening. Participating in today's call is Group's CEO Peter Karlströmer, Group CFO Søren Jelert, and myself, Rune Sandager, Head of Investor Relations. The presentation is expected to last around 20 minutes, after which we'll turn to the Q&A session. The presentation is already uploaded on gn.com.
With that, I'm happy to hand over to Peter for some opening remarks.
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Thank you, Rune, and thank you all for joining us today. Before going into the business performance during the quarter, I would like to spend a few minutes on the development around the hearing transaction and the hearing business. To remind everyone, we took the decision in March to sell our hearing business to Amplifon to create the global leader in
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