JDC Group — Q3 affected by low German consumer confidence

JDC Group reported a 5.6% increase in revenues, to €55.1m, and 9.1% higher EBITDA of €2.5m in Q325. Management reiterated FY25 guidance for revenues of €260–280m and EBITDA of €20.5–22.5m, but said it expected results to come in at the lower end of the range due to increasingly negative consumer confidence in Germany. Management also reiterated FY26 EBITDA forecast of over €35m. The recently acquired 60% stake in FMK Group was consolidated in JDC’s results as of 1 September and contributed to the results for one month. We have lowered our estimates to reflect the shift in the guided range. At our new estimates, we still believe that JDC’s valuation is undemanding. Our discounted cash flow (DCF) analysis arrives at a fair value of €35.63 per share (previously €36.89 per share).