Märkte & Kurse

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Original-Research: Ernst Russ AG - from Quirin Privatbank
Kapitalmarktgeschäft

18.11.2025 / 08:35 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to Ernst Russ AG

     Company Name:               Ernst Russ AG
     ISIN:                       DE000A161077

     Reason for the research:    Update
     Recommendation:             Buy
     from:                       18.11.2025
     Target price:               11.00
     Last rating change:
     Analyst:                    Klaus Soer

Improved portfolio Structure & Solid Q3

Ernst Russ refined its FY25 guidance and delivered solid 9M 25 (Q3 25)
results in line with our expectations. Revenue of Q3/25 accounted for EUR
39.4m (-5% yoy.). Q3/25 EBIT came in with EUR 22.1m. EBIT margin of 56.1% is
very favorable and largely backed by ongoing high charter rates despite
global economic uncertainties. Average daily charter Rate holds up at USD
17,802 (YTD) and average remaining duration of charter contracts have
increased to 24.4 month (incl. two vessels on order). In order to increase
transparency to capital markets and shareholders, ER has performed on the
buyout of non-strategic minorities across a JV with six containerships (new
ER stake 99%), plus two vessels (new ER stake above 50%). This strategic
investment lowers the fleet's average minority share from approx. 40% (FY24)
to 25% for FY25e. We expect the investment size for the minority buyouts to
be around EUR 34m, which sums up to an expected total capex of around EUR
50m FY25e. Our expectation on full FY25e remains nearly unchanged on the
operational level of the ER group. Sales should achieve around EUR 157m (-9%
yoy.) due to the reduced fleet and slightly lower charter rates. Our new
FY25e EBIT expectation is EUR 84.8m (+19.4% yoy.), which includes capital
gains of around EUR 42.3m due to the sale of two older vessel in H1/25 and
the recent sale of "EF Elena" (est. capital gain of approx. EUR 10m). FY25
EBIT is burdened by around EUR 10m by non-cash neutral result due to the
weaker USD vs. EUR. Based on our updated DCF model we derive at a fair
market value for the ER stock of EUR 11.31 per share (prev. EUR 10.00). The
increase relates mainly to the expected slightly higher charter rates and
the strengthening of the vessel portfolio by the recent acquisitions. We add
a new asset-based valuation of the ER group vessel portfolio including cash
resources. Based on external ship valuation we derive at a portfolio value
of EUR 13.21 per share. We reiterate our BUY Rec with TP of EUR 11.00
(prior: EUR 10.00).


You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=c523e26d208fd94bc00cf94e77da1a55
For additional information visit our website:
https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/

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2231436 18.11.2025 CET/CEST

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