What Takkt (TTK) Said on Its Q3 Earnings Call

Key Points

• A cyberattack has materially disrupted TAKKT’s fourth-quarter operations, affecting order processing, deliveries and invoicing in key businesses. Core infrastructure has been restored, but delivery capacity initially stood at roughly 10% of normal and a backlog is expected to weigh on results for weeks.
• Third-quarter results, recorded before the attack, showed sales of €232 million, down 4.3% organically, while adjusted EBITDA fell to €5.6 million with a 3.0% margin. First-nine-month sales declined 6.9% year over year to €685.6 million.
• Management warned the incident raises the risk that full-year organic sales, adjusted EBITDA margins and free cash flow will come in below guidance ranges. TAKKT reported €134.7 million in net financial liabilities at the end of September and expects to publish preliminary 2026 results on Feb. 25, 2027.

Takkt ETR: TTK said a cyberattack detected on Oct. 19 has materially disrupted operations in the fourth quarter, affecting order processing, deliveries and invoicing in its Industrial & Packaging operations in Europe and Foodservices business in North America.

Chief Executive Officer Andreas Weishaar said the company contained the attack shortly after it was identified and prevented further data exfiltration. TAKKT isolated affected systems and proactively took additional infrastructure offline as a precaution, while external cybersecurity and IT-forensics specialists support containment and recovery efforts.

“Core infrastructure has been restored,” Weishaar said, adding that the company has resumed initial processing of accumulated orders and is gradually restarting deliveries. However, he said operational capacity remains “significantly restricted” and the order backlog will continue to affect the business in the coming weeks.

Recovery underway, but capacity remains constrained

TAKKT said most of its web shops and internal and external communication channels remain available. Customers can continue placing orders, which are being added to the backlog, while teams have used manual processes to fulfill selected orders, particularly larger orders.

During the question-and-answer session, Weishaar said the group expected to operate at roughly 10% of its normal delivery capability as recovery begins. He said the company expects its capability to be fully restored “in the coming weeks” as it safely brings additional devices, systems and processes back online.

The company is prioritizing recovery resources toward Industrial & Packaging, its largest and most profitable business. Orders are being prioritized based on size, urgency and customer importance.

TAKKT said it has notified relevant authorities as required and is informing affected customers and suppliers. Weishaar said customer-facing and procurement teams have received positive feedback on the company’s communication, and he does not currently expect a lasting reputational impact on its brands.

Third-quarter performance reflected pre-attack conditions

The cyberattack occurred after the end of the third quarter, meaning reported results through September were not affected by the incident. Group sales in the third quarter totaled €232 million. Organic sales declined 4.3%, broadly matching the second-quarter rate of decline.

The sale of the European Foodservices business XXLhoreca reduced reported quarterly sales by 1.5 percentage points, while currency effects added 0.6 percentage points, CFO Timo Krutoff said.

Third-quarter EBITDA was €5.6 million, and the adjusted EBITDA margin was 3.0%, compared with 4.3% a year earlier. Gross margin improved despite elevated freight costs, while costs remained broadly level with the prior year as the company continued to invest in systems and processes.

For the first nine months, sales totaled €685.6 million, down 6.9% year over year. Organic sales declined 5.1%, including an impact of roughly one percentage point from discontinuing Foodservices bid-contract business in the U.S.

• Adjusted EBITDA for the first nine months was €14.5 million.
• The adjusted EBITDA margin was 3.2%, down one percentage point year over year but in line with management’s expectations at the start of 2026.
• Cost-management measures reduced the cost base by around €9 million during the first nine months.
• One-time costs were €7 million, higher than in the prior year.

Divisional trends were mixed

Industrial & Packaging recorded a 3.4% organic sales decline in the third quarter, unchanged from the second quarter. TAKKT said regional performance remained mixed and volatile. Its adjusted EBITDA margin for the first nine months was 6.4%, down from 8.4% a year earlier, reflecting higher European freight costs and €5.8 million of one-time costs, primarily tied to a more efficient logistics network.

Office Furniture & Displays posted a 4.6% organic sales decline in the third quarter after growth in the second quarter. Organic sales were down 1% for the first nine months. At NBF, demand remained positive, including strong September order intake from government customers, but weather-related container shipment delays constrained product availability and deliveries. The company expects those delayed orders to convert into sales in October and November.

The Office Furniture & Displays adjusted EBITDA margin reached 6.3% in the first nine months, slightly above the prior-year level. Krutoff said both NBF and Displays2go were profitable and their margins were not far apart.

Foodservices organic sales declined 6.3% in the third quarter, though management described this as a stabilization after a difficult first half. The business saw positive development in Hubert’s managed accounts and among smaller emerging restaurant chains. The division’s adjusted EBITDA margin was 0.4% after nine months, leaving it close to break-even, according to Krutoff.

Cash flow and outlook face added pressure

Free cash flow was negative €12.7 million after nine months, in line with TAKKT’s expectations at that stage of the year. Cash flow from operations was €1.3 million, while higher inventories and receivables contributed to a €4.2 million cash outflow from working capital and other adjustments.

Net financial liabilities were €134.7 million at the end of the third quarter, compared with €131.5 million at year-end. The equity ratio was 48.1%, compared with 50.6% at year-end. TAKKT also recognized an impairment in Foodservices following an update to its multiyear plan that assumed lower future free cash flow.

Management said the cyberattack has significantly increased the risk that full-year performance will land at the lower end of its guidance ranges. Depending on the duration of operational restrictions and the pace of recovery, organic sales growth and adjusted EBITDA margin could fall somewhat below those ranges, Weishaar said.

The company also said the incident has increased the risk of negative free cash flow for the full year, although it continues to pursue releases of net working capital and other cash-generation measures. TAKKT plans to publish preliminary full-year 2026 results on Feb. 25, 2027.

About Takkt (ETR:TTK)

TAKKT AG operates as a B2B direct marketing company for business equipment in Germany, the rest of Europe, and the United States, and internationally. The company operates in three segments: Industrial & Packaging, Office Furniture & Displays, and FoodService. The Industrial & Packaging segment offers pallet lifting trucks and swivel chairs; special-purpose products, including environmental cabinets and containers for hazardous materials, as well as collapsible boxes, package paddings, shipping pallets, and stretch films under the kaiserkraft name; shipping packaging products under the ratioform brand; and a wide range of office furniture and business equipment under the BiGDUG and OfficeFurnitureOnline names.

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