WindowMaster International A/S: WindowMaster updates guidance for 2024 and announces expectations of 2-8% growth in 2025

Company Announcement - No. 050-2024 - Inside information

Vedbaek, 12^th December 2024

WindowMaster is updating its guidance for 2024 to revenue DKK 283-286m from DKK 270-280m and EBITDA to DKK 34-36m from DKK 30-35m. In 2025, revenue is expected to grow by 2-8% to DKK 290-310m, while EBITDA is expected to increase to DKK 36-41m. The outlook for 2025 is supported by stable high order intake in 2024.

Guidance for 2024

WindowMaster is updating the guidance for 2024. Revenue is now expected to be in the range of DKK 283-286m (previous expectation: DKK 270-280m) and EBITDA in the range of DKK 34-36m (previous expectation: DKK 30-35m), equivalent to an EBITDA-margin of approximately 12.0-12.5%. The majority of the continued revenue growth in 2024 is related to positive developments in project execution across all markets and product.

The contribution margin remains solid, while the EBITDA ratio and result is higher due to economy of scale - as assumed in the "Accelerate Core" strategy. The final revenue and EBITDA for 2024 will depend on the percentage of completion of ongoing projects - determining the level of revenue that can be taken to income.

Order intake for the full year 2024 is expected to be in the range of DKK 280-285m (2023: DKK 254m).

Cash flow from operations has been significantly stronger during 2024 compared to 2023, resulting in a significantly lower financial gearing at the end of 2024 of around 1.0 (End 2023: NIBD/EBITDA 1.8).

The Board of Directors expects to propose that a total dividend of DKK 5m is paid out for 2024 (DKK 0.34 per share) based on the expected result and capital structure at the end of 2024.

Outlook for 2025

In 2025, revenue is expected to grow organically by approximately 2-8% to DKK 290-310m and EBITDA is expected to grow to DKK 36-41m, equivalent to an EBITDA-margin of 12-13%.

The outlook for 2025 includes a high level of uncertainty particularly in relation to projects in the Nordic and German markets due to lower expected activity, especially in the first half of 2025. The outlook for North America is solid.The outlook does not include contracts with major OEM suppliers to deliver products in 2025. Adjusting for such an agreement, the projected revenue growth in 2025 would be 5-12%. However, WindowMaster is expecting the business environment to improve during 2025, and especially during 2026 due to implementation of regulations that will support the use of Natural Ventilation. The uncertainty relates to the timing of when the improved business environment will materialize in terms of increasing orders and revenue. As a result, WindowMaster's guidance for 2025 is below the targeted growth of 10-15% as announced in the strategy plan from June 2022.

Fixed costs and investments are expected to be kept unchanged, which is expected to lead to improved lead generation, opportunities, and revenue. Increased profitability and high cash conversion will further reduce the financial gearing. Thus, NIBD/EBITDA is expected to be well below the target of maximum 2.0 by the end of 2025.

Announcement on 2024 and 2025 guidance	No. 48 on 9 October 20242024		No. 50 on 12 December 20242024	No. 50 on 12 December 20242025
Revenue	DKK 270-280m		DKK 283-286m	DKK 290-310m
Revenue growth%	13-18%		19-20%	2-8%
EBITDA	DKK 30-35m		DKK 34-36m	DKK 36-41m
EBITDA%	11-12.5%		12.0-12.6%	12-13%

Copenhagen, 12 December 2024

Executive Management

Erik Boyter

CEO

For further information:

CEO, Erik Boyter
M: [phone]
Mail: [e-mail]

WindowMaster International A/S
Skelstedet 13
2950 Vedbæk
Denmark

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