DIY, luxury fashion and Russian controversies
Diagnostic Medical Systems, Brunello Cucinelli, Argan, Hornbach, CCC, Solaria, Lhyfe, OSE Immunotherapeutics, Arcadis, Aperam
At Lux Opes, we break down the latest company news into quick takes that get straight to the point—what happened, why it matters, and what to watch next.
We publish 2-4 times per week, depending on the news flow.
As of next week, we will be providing a table with an overview of financial KPIs for all the companies discusses, i.c. market cap, historical and consensus forecast revenues and earnings (growth), valuation multiples, etc.
Diagnostic Medical Systems (ALDMS France): Margin gains set the stage for renewed growth
Diagnostic Medical Systems’ results showed a striking improvement in profitability, setting the stage for a much stronger second half.
Revenue in the first six months edged higher, supported by stronger contributions from radiology equipment and white-label sales, which now form the majority of the business. Osteodensitometry, though weaker, was largely affected by timing factors rather than structural issues. Geographically, growth came from outside the company’s traditional base, with North America and the Middle East both posting significant gains. This expansion underlines how the group’s international push is beginning to pay off, even if its overall scale remains relatively modest.
The more important signal from this release was the sharp recovery in margins. Cost discipline and efficiencies helped push EBITDA materially higher compared to last year, with external charges kept under tight control. Management has made clear that these savings are not a temporary benefit but part of a structural reset that should underpin profitability in future periods.
The bottom line also improved, moving close to break-even. In parallel, the capital increase completed during the summer bolstered the balance sheet, reducing leverage and providing fresh resources to support commercial expansion. The entry of institutional investors alongside strategic backers is also a meaningful endorsement of the group’s positioning, ensuring it has both the credibility and financial capacity to accelerate its roadmap.
Momentum should shift up a gear in the second half of the year. Deliveries to Ukraine, under the sizeable contract announced earlier, are expected to ramp significantly, while the newly secured FDA approval opens the door to the US market through the Medlink partnership. The addressable opportunity in America is substantial, and the first shipments are already underway.
While regulatory bottlenecks in Europe have delayed the market introduction of the Onyx mobile system into 2026, management remains confident that its broader portfolio and geographic diversification will support its long-term growth plan, with ambitious revenue and margin goals set for 2027.
All told, DMS appears ready for the next growth spurt.
Brunello Cucinelli (BC Italy): Solid growth overshadowed by Russia controversy
Brunello Cucinelli delivered another quarter of robust sales growth, with Q3 revenues broadly matching expectations. The company reiterated its full-year guidance of 10% growth and slight margin expansion, pointing to resilient global demand and successful store openings in Asia and the Middle East.
Yet, despite this strong operating performance, investor focus remains fixed on the controversy triggered by a short-seller report questioning the group’s presence in Russia. Management has pushed back firmly, stressing that its Russian revenues have shrunk to just 1.4% of the total, a fraction of the pre-sanctions level, and that it is fully compliant with EU regulations.
The group clarified that its three flagship stores in Russia operate under tight restrictions, with products sold only at factory prices and within limits designed to avoid sanction breaches. It also stated it has no involvement in parallel imports, and to reinforce credibility, it has commissioned an external audit of its internal controls. These steps suggest a proactive attempt to quell investor doubts, but the controversy has not completely subsided, reflecting how sensitive luxury brands are to reputational risks in today’s market.
Fundamentally, Cucinelli’s business continues to deliver, with growth rates at or above luxury peers. But structurally, the company’s lower margins and higher capital intensity mean it cannot be valued on the same terms as Hermès, even if its short-term growth slightly outpaces the French house.
The Russia issue only underlines this caution: while operational momentum is strong, the controversy highlights vulnerabilities in perception that could weigh on investor sentiment until clarity is fully restored.
Argan SA (ARG France): Strong rental growth with pipeline momentum intact
Argan posted another solid quarter, with nine-month rental income up 6% yoy, mainly driven by recent deliveries and indexation. Occupancy remains close to full capacity, even after Carrefour vacated several warehouse cells, thanks to strong demand for premium logistics space around Paris. With rental income guidance for the full year reaffirmed at €211 million and recurring profit expectations in line with consensus, the group’s operational visibility looks intact. Dividend growth of 4.5% has also been confirmed, reinforcing its income appeal.
Argan continues to have a healthy pipeline. Two new pre-let sites are scheduled for delivery in Q4, adding over 25,000 square meters of space. For 2026, Argan has already secured €215 million of investments, with targeted yields above 6%, and is exploring additional projects in southern France.
Financing remains a key theme: although the cancellation of a planned portfolio sale has modestly lifted leverage metrics, rating agencies maintain confidence in Argan’s balance sheet, leaving its investment-grade status untouched. Upcoming refinancing of a €500 million bond due in 2026 is expected to be manageable, with only a modest uptick in borrowing costs anticipated.
Overall a confirmation of Argan’s steady execution of its growth roadmap. The company continues to balance high occupancy, disciplined indexation, and selective expansion in attractive logistics hubs, while managing its capital structure prudently. Even with political uncertainty weighing on markets, Argan’s model—anchored in long leases with solid tenants—provides stability.
For investors, the appeal here lies in both predictable cash generation and a pipeline that suggests the growth trajectory can continue beyond 2025, keeping the story one of consistency and resilience.
Hornbach Holding (HBH Germany): Steady performance in a cautious retail landscape
Hornbach is navigating a tough consumer backdrop with surprising steadiness.
Revenue for the period grew at a healthy pace, helped by a strong spring season and ongoing gains in market share across nearly all regions. Germany, still its core market, inched forward, while countries like the Netherlands and Austria delivered stronger growth, reflecting Hornbach’s ability to win customers even when household spending remains under pressure.
A deliberate push on digital channels continues to matter as well, with online sales now contributing meaningfully to the mix, reinforcing the company’s hybrid positioning between traditional do-it-yourself stores and modern e-commerce. The quarter-on-quarter slowdown was visible, but much of it stemmed from predictable seasonal effects and modest wage-related cost increases as the group expanded its footprint in Central and Eastern Europe.
Behind the headline numbers, the theme of resilience was clear. Gross margins held steady, underpinned by a disciplined product mix and ongoing innovation in assortments, even as costs such as personnel rose in line with store openings. Free cash flow improved on the back of better working capital management and higher profitability, though capital expenditure also accelerated as Hornbach pressed ahead with its store expansion pipeline.
This twin dynamic—reinvestment while protecting cash flow—signals management’s confidence in long-term demand, despite today’s subdued sentiment. In fact, the group’s ability to take market share in nearly all its key geographies, from Germany to Switzerland and the Czech Republic, suggests it is quietly consolidating its leadership in Europe’s home improvement market at a time when some peers are still struggling with consumer weakness.
Hornbach has not shifted its guidance, preferring to keep expectations steady for the full year with sales and profits seen broadly flat to modestly ahead. The cautious tone reflects a recognition that household budgets across Europe remain fragile, yet early signs of recovery are visible, particularly in store traffic and order patterns.
What sets Hornbach apart is its clear strategic positioning: a blend of attractive pricing, a growing stable of private-label products, and a balanced model that integrates physical retail with online. Combined with disciplined cost management, these factors allow the company to weather cyclical swings while continuing to expand.
CCC (CCC Poland): Maintaining momentum
CCC’s headline numbers showed an increase in revenues compared with last year, with the core CCC banner performing better than initially indicated in the preliminary release. Some of the changes reflected technical adjustments in how franchise and service activities were presented, which lifted top-line figures.
At the same time, the Modivo segment reported slightly lower sales after a reclassification of discounts, showing the complexity of integrating different retail formats under the group. Inventory levels were also adjusted upward, largely due to the acquisition of a specialist sports chain earlier in the year. These moves did shave a few basis points off the margin compared with the preliminary report, but the overall picture of improvement remained intact.
A double-digit increase in operating profit demonstrated that CCC’s retail model is holding up well in a competitive Polish and regional environment. The group’s ongoing shift to a more digital and omnichannel approach continues to pay dividends, balancing the still-important traditional stores with an expanding e-commerce presence. The integration of Modivo and the decision to stop breaking out eobuwie separately also point toward a clearer, more streamlined group structure that should help investors focus on the bigger picture rather than fragmented disclosures.
The seasonal rhythm of the fashion and footwear business means second-half performance carries heavier weight, and management has already signaled that investments in the first half should support stronger results later in the year.
While margin tweaks in the quarterly print attracted attention, they do not change the broader narrative: CCC is improving its profitability base, expanding its product and distribution platform, and continuing to strengthen its position in Central and Eastern Europe’s competitive retail market. CCC is a group steadily climbing back from past challenges with a sharper focus on sustainable profitability.
Solaria (SLR Spain): Infrastructure gains bolster earnings but growth path remains key
Solaria’s recent -half update highlighted the unusual dynamics of its business this year, where traditional power generation was softer but the company still managed to post stronger results thanks to infrastructure-related revenues.
Installed capacity remained flat at around 1.65 GW, and production volumes dipped due to weaker solar radiation, dragging electricity sales below forecasts. At the same time, realized prices failed to fully offset the volume effect, leaving pure energy sales under pressure.
Yet the group surprised positively on consolidated sales and earnings because of a significant contribution from infrastructure activity and a one-off gain linked to the dilution of its stake in Generia earlier in the year. This mix helped lift EBITDA and net income sharply higher, a reminder of the diversified levers the company has developed alongside its pure generation footprint.
Management reaffirmed its operational roadmap for 2025. The group expects to commission 1.4 GW of new capacity this year, which would nearly double its installed base to about 3 GW by year-end. Longer term, the target remains ambitious, with a trajectory toward more than 6 GW, though the flagship Villaviciosa project has slipped slightly into early 2027.
Battery storage and potential data center tie-ins are also becoming more prominent in Solaria’s growth story, signaling that the company is increasingly positioning itself not just as a solar producer but as a broader infrastructure player in Europe’s energy transition. Even with the production setbacks in the first half, Solaria reiterated its EBITDA goal for 2025, betting on stronger seasonality and the ramp-up of new projects to deliver the required uplift.
Strategically, Solaria’s ability to combine project execution discipline with opportunistic moves in adjacent infrastructure businesses has proven valuable, particularly in years when generation alone would have left results below par. The shift toward greater exposure to market prices for a portion of its volumes is also important, as it creates a link to potential upside in a tighter European power market, while still preserving stability through long-term contracts.
Lhyfe (LHYFE France): Struggling to scale as hydrogen ambitions face roadblocks
Lhyfe’s mid-year update highlights both the promise of its expanding operations and the stubborn challenges of trying to commercialize green hydrogen in Europe.
The company managed to lift sales as new units ramped up, but profitability remained deeply negative with operating losses widening compared to last year. Cost discipline kept EBITDA largely steady, showing that management is keeping a firm hand on expenses, yet depreciation and project-related charges dragged results lower. While cash reserves provide some breathing room, ongoing investment is pushing debt levels higher, underscoring the pressure of financing growth in a capital-intensive market.
Lhyfe’s strategy is evolving to rely more on partnerships. Its pipeline now exceeds 9 GW, though only a small slice is at an advanced stage and the installed base remains limited at just over 20 MW. To accelerate development without overextending itself, the company is increasingly structuring deals where industrial and financial partners shoulder more of the heavy lifting. In return, Lhyfe secures earlier revenue streams through project development fees and operational management agreements.
This shift offers better visibility and capital efficiency, but it also reduces the company’s direct upside and makes execution more dependent on external stakeholders. All of this plays out against a sector backdrop that is far from encouraging, with regulatory momentum faltering, projects being delayed, and peers retrenching or failing outright.
The comapny now expects around €10 million in revenues for 2025, with the previous €100 million target for 2026 looking increasingly unrealistic under present conditions. The slower-than-hoped adoption of hydrogen targets by European states, coupled with difficulties securing financing, continues to weigh on growth. Even so, Lhyfe points to its sizable pipeline and improving operational footprint as reasons to remain optimistic about the medium term.
For now, the business remains more about positioning itself for the future, and while the industry remains in flux, the company’s disciplined cost base and partnership model may prove essential in weathering the current challenges.
OSE Immunotherapeutics (OSE France): Board reshuffle clears the way for clinical focus
After months of governance uncertainty, OSE Immunotherapeutics’ latest general meeting brought a decisive outcome with a complete renewal of its board. The shake-up followed shareholder tensions, culminating in the dismissal of CEO Nicolas Poirier and several directors, replaced by new members led by Alexis Peyroles, who previously served as CEO, and Markus Cappel, a biotech veteran now stepping in as chairman. The votes also strongly endorsed financing resolutions, giving the company flexibility to raise capital and secure the resources it needs to push forward its clinical pipeline. This signaled investor recognition of the urgency to support ongoing trials, particularly around Lusvertikimab.
The market welcomed the outcome, with shares jumping on the confirmation that financing leeway was secured. The approval provides OSE with crucial maneuverability, especially as it prepares to advance its Phase IIb program.
With its governance now stabilized and strategic focus reaffirmed, the company can direct attention back to its scientific and clinical priorities. The restructuring is less about immediate numbers and more about restoring credibility and momentum after months of internal disputes that had overshadowed development progress.
The story now hinges on whether OSE can translate this governance reset into accelerated partnerships and clinical advancement. Its pipeline has strong potential, but the company still faces the delicate balancing act of financing without undue dilution while keeping pace with trial milestones.
With shareholder confidence reinforced by the AGM outcome, OSE enters a new chapter, one where execution will matter more than governance debates. The board renewal is the precondition for regaining momentum, but the real proof will be in clinical data and partnership activity over the next 12–18 months.
Arcadis (ARCAD Netherlands): Buyback signals confidence and value
Arcadis’ announcement of a €175m share buyback—equivalent to around 5% of its market cap—marks a bold step in capital allocation and comes earlier and larger than the market had expected.
The timing is notable: investors had anticipated such a move alongside full-year results if no sizeable acquisitions were on the table. Instead, management has acted now, underscoring confidence in both balance sheet strength and undervaluation. On a 2026 basis, Arcadis trades at a 40-50% discount to peers and historically. Against that backdrop, repurchasing shares looks highly accretive.
Crucially, financial flexibility remains intact. Even after the programme, leverage ratios leave capacity for further bolt-on acquisitions in line with Arcadis’ track recordm with management signaling any deals would remain small to mid-sized.
This reinforces the view that further buybacks could be on the agenda down the line if valuation gaps persist. The move also reflects the approach of the new CFO, who appears willing to lean on the full capital allocation toolkit to support shareholder returns.
Importantly, the announcement should not be read as a cover for weak near-term trading. Management has reiterated its guidance for low single-digit growth in H2 and EBITA margin improvement versus last year. That sets up Arcadis to hit its 2026 EBITA margin target of 12.5% while resuming mid-single digit revenue growth.
With investor sentiment bruised by recent underperformance, the buyback provides a clear first step in regaining credibility. The valuation gap to peers looks unsustainably wide, and with high free cash flow yields, Arcadis appears well-placed to rerate.
Aperam (APAM Netherlands): Stainless steel under pressure but long-term story intact
Aperam’s trading update was a reminder of how tough the European stainless steel backdrop remains, even as the group continues to balance its portfolio across regions.
Third-quarter earnings are set to come in weaker than earlier in the year, dragged down by softer demand, seasonality, and some one-off maintenance issues in the alloys business. Pricing pressure in Europe has also intensified, with stainless base prices falling to two-year lows, as import competition builds and order books remain thin.
None of this is particularly surprising given the macro environment, but it underlines how reliant Aperam’s near-term results still are on external conditions, even as the company keeps working to optimize costs and reduce debt through tighter working capital management.
Europe accounts for the bulk of Aperam’s activity, and it is where the short-term challenge is most visible. Imports, redirected from the US after tariffs were imposed earlier this year, have been adding pressure on already fragile pricing. At the same time, anticipation ahead of the EU’s tightening trade defense measures has pushed more material into the market, leading to an oversupply situation that weighs on sentiment. The outlook for Q4 is not without risks, but expectations have already been dialed down after the second quarter, leaving room for a seasonal pickup in alloys and recycling to restore some momentum.
That said, Aperam remains well positioned strategically. Its revenue base has become less Europe-heavy over the past two years, with stronger contributions from Brazil and a meaningful presence in the US, both of which provide diversification from the cyclical swings of the European market.
Structurally, the company is also set to benefit from the €500 billion EU infrastructure plan, which should gradually bolster stainless steel demand once projects ramp up from 2026 onward. At the same time, a more favorable regional and product mix, coupled with continued cost discipline and execution, points to an ability to weather volatility while keeping a strong balance sheet and attractive dividend profile.
For investors looking at the medium term, the story here is not so much about the weak prints of 2025 but more about positioning for an eventual upturn in demand when Europe stabilizes.
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