Classification of NuWays AG to The Platform Group SE & Co. KGaA

Company Name:	The Platform Group SE & Co. KGaA
ISIN:	DE000A40ZW88
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 17
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Strong Q1 figures, closing of AEP acquisition expected soon

TPG published Q1 figures marked by strong top-line growth, a meaningful strategic recalibration on leverage and acquisition pace that we view as the key takeaway for investor.

Group revenue grew 51% yoy to € 243m (GMV +23% yoy to 438m). Importantly, this is not a simple M&A effect; organic growth accounted for 71% of revenue growth. This reflects the platform's improving self-reinforcing dynamics: a broader partner network of 17,221 (up 12.2% yoy), stronger customer retention with 8.1m active customers on an LTM basis (up 42%), and a structural uplift in AOV to € 128 (up 2.4%), driven by the growing weight of high-unit-value verticals such as Optics & Hearing and Luxury. Orders (on group level) reached 3.4m vs 2.5m a year ago.

Profitability solid, margin dip largely temporary. Adj. EBITDA increased 37.1% to € 21.8m, with a margin of 9.0%, which was down 90bps yoy. The compression is attributable to two main factors: a 40bps gross margin decline to 34.4% stemming from trade discounts and increased provisions, and higher other external expenses tied to IT and administrative costs reflecting the rollout of the AI-first strategy initiated in late 2025. Importantly, operational cost ratios improved. Most prominantly, distribution fell 70bps to 7.1%, benefiting from the centralised logistics hub in Gladbeck and the increasingly favourable mix toward logistics-light verticals. Worth highlighting, net income remained largerly flat yoy as last year's figure benefiting from a positive one-off related to acquisition badwill rather than any deterioration in underlying earnings quality.

FY26 guidance fully confirmed. The management continues to expect € 1.7bn (eNuW: € 1.71bn), net revenue of € >1bn (eNuW: € 977m) and adj. EBITDA of € 70-80m (€ 74m). In light with the seasonally strong H2 of the business, this looks well in reach.

M&A pace recalibrated, AEP remains the key near-term catalyst. Management reduced the number of planned acquisitions for FY26 to 5-6 (11 in 2025), as well as 1-2 divestments, reflecting the current increased interest rate environment. On AEP, the transformational acquisition of a pharmaceutical distribution business with € 1bn revenue, management confirmed that closing conditions have not yet been fully met, with further progress expected in June.

The net leverage ratio edged down to 2.0x in Q1 from 2.1x at year-end 2025, and management has formalized a new target of 1.0-1.4x by 2030, replacing the prior 1.5-2.3x corridor. The path there runs through portfolio simplification, operating cash flow-driven debt repayments, and selective asset disposals. We see this commitment to structural deleveraging as a re-rating catalyst, as it notably reduces re-financing risks embedded in the group's buy-and-build strategy.

Our take: Q1 2026 reinforces the investment thesis. First, organic growth is accelerating as a proportion of total revenue, demonstrating platform durability beyond the acquisition engine. Second, operating cost ratios are compressing in a disciplined manner, supported by its AI-first programme. Third, the strategic adjustment on leverage and M&A pace should reduce a key investment risk. We confirm our BUY rating with an unchanged PT of € 17, based on DCF.

You can download the research here: the-platform-group-ag-2026-06-01-previewreview-en-a2064
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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