Original-Research: DO & CO AG (von NuWays AG): BUY

Classification of NuWays AG to DO & CO AG

Company Name: DO & CO AG

ISIN: AT0000818802

Reason for the research: Update

Recommendation: BUY

Target price: EUR 266

Target price on sight of: 12 months

Last rating change:

Analyst: Simon Keller

Q3 review: fx distorts, margins improve

Q3 25/26 results highlighted encouraging operational momentum, despite fx

noise. Reported sales declined 2% yoy to EUR 630m (eCons: EUR 648m; eNuW: EUR

647m) against a tough comp that in fact had an 8pp fx-tailwind. Importantly,

fx-adj. sales grew 16% yoy, supporting our positive view on underlying

demand. Moreover, the EBIT margin improved to 8.9% (+0.2pp yoy, 0.2pp better

than expected, also see p.2), thanks to a decline in material expenses

(-5.5% yoy).

Q3 Airline Catering sales (c. 80% of group) declined 3% yoy (fx-adj. up 19%

yoy) to EUR 471m. Importantly, profitability held up, showing an EBIT of EUR

39m, broadly stable yoy, supported by a favourable material cost trend

(-4.4% yoy).

The demand setup into 2026 remains constructive for airline catering, with

IATA expecting further passenger growth (c. 5% yoy). Turkey adds a tangible

volume tailwind: Istanbul Airport is targeting roughly 7% passenger growth

in 2026 (close to 90m). At the same time, Turkish Airlines is stepping up

investments at the hub including catering infrastructure and it has the

ambition to double its aircraft fleet within the next 10 years. DOC's new

150,000m² Istanbul gourmet kitchen, for which construction starts in Feb 26,

should put capacity behind that growth.

In addition, DOC is seeing firm tender momentum, having participated in 73

closed tenders in 2025 with a win rate >50% (17 new contracts, remainder

extensions), supporting further growth and visibility in Airline Catering.

With that, we expect reported growth to re-accelerate in Q4 as fx comps

ease.

International Event Catering delivered a "flat but healthy" quarter with

sales of EUR 109m (+1% yoy) and EBIT of EUR 12m (+2% yoy; margin: 11.2%). The

underlying sales run rate remains solid (+13% yoy in 9M 25/26 adj. for the

EURO 2024 event last year), supported by Formula 1 hospitality and strong

utilisation across DOC's Munich venues. Moreover, DOC seems to make progress

on the FIFA world cup in 2026, with details expected in the coming weeks

(eNuW: c. EUR 30m of sales potential, partly reflected in estimates).

Meanwhile, balance sheet quality continues to improve, supported by better

than expected cash generation (FCF: EUR 66m in Q3). DOC has deleveraged to a

net debt/EBITDA of 0.2x, effectively close to net debt neutral (only EUR 52m

after Q3). This provides resilience and financial flexibility.

All in all, DOC maintains exposure to the secular growth in air travel, a

differentiated premium positioning (validated by Turkish Airlines' Skytrax

2025 onboard catering award) and sound contract visibility.

BUY, unchanged PT of EUR 266, based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=3b95d9f2ddc10d939560cd3ce641c5a8

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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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2275964 13.02.2026 CET/CEST

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