Stable development in still challenging markets
Second quarter
- Net sales rose to SEK 2,339 million (2,331). Organic growth amounted to 3 percent.
- Adjusted for currency, the total order intake decreased by 7 percent, while the order backlog rose organically by 9 percent as per June 30 to SEK 2,829 million (2,654).
- Operating EBITA rose to SEK 264 million (263) and the operating EBITA margin amounted to 11.3 percent (11.3).
- EBIT increased to SEK 237 million (228) and the EBIT margin increased to 10.2 percent (9.8).
- Earnings per share before and after dilution increased to SEK 2.69 (2.52) and SEK 2.68 (2.52) respectively.
- Net debt decreased to a multiple of 1.2x in relation to operating EBITDA (0.9 excluding IFRS 16).
January - June 2025
- Net sales rose by 5 percent to SEK 4,338 million (4,142). Organic growth amounted to 6 percent.
- Operating EBITA rose to SEK 375 million (354) and the operating EBITA margin rose to 8.6 percent (8.5).
- EBIT increased to SEK 330 million (301) and the EBIT margin increased to 7.6 percent (7.3).
- Return on operating capital increased to 13.4 percent (13.1).
- Earnings per share before and after dilution increased to SEK 3.34 (2.89) and SEK 3.33 (2.89) respectively.
CEO Comments:
Just over six months into 2025, I note that the expected recovery of the market has been delayed. The uncertain external environment has affected household willingness to invest, which remains low despite incentives such as interest rate reductions and the increase in the renovation and maintenance tax deduction in Sweden. At the same time, Inwido delivers a profit in line with or better than the corresponding quarter last year. Our assessment is that we have advanced our position and gained share in the majority of the markets in 2025.
During the second quarter of the year, net sales increased organically by 3 percent to SEK 2,339 million. Both the operating EBITA of SEK 264 million (263) and the operating EBITA margin of 11.3 percent (11.3) were largely unchanged compared with the corresponding period last year. During the quarter, in translating foreign subsidiary earnings, the stronger Swedish krona negatively impacted profit by SEK 9 million compared with the previous year. The order intake decreased by 7 percent, primarily attributable to Inwido, through its Irish company Carlson, having received a record order, Inwido's largest until then, in the corresponding quarter of the preceding year. The order backlog is at an all-time high, increasing to SEK 2,829 million, up 9 percent adjusted for exchange rates and acquisitions.
The sustainability efforts are yielding good results and all KPIs are developing in a positive direction. For the second consecutive year, Inwido is included in the Financial Times list of Europe's 600 climate leaders, this year with a higher ranking (12th) in the Construction and Building Materials segment. Inwido also improved its ranking to A- in the latest CDP report on Supplier Engagement in 2024. In the quarter, we took an appreciated farewell of Lena Wessner, EVP HR, Organization & Sustainability, who has chosen to retire. On September 1, we will welcome Malin Cullin as EVP People & Culture and a new member of Group Management. Malin has a solid background in similar roles within companies such as OptiGroup, Duni, IKEA and Tarkett.
I am also pleased with the continued progress in a number of strategic priorities during the quarter, such as portfolio optimization and increased internal cooperation. Acquisition activities continue to have high priority and the list of potential acquisition candidates is solid and growing. We are conducting a number of parallel discussions, and I note that general market uncertainty is also affecting the decisions of sellers, which leads to lengthy acquisition processes.
Business Area Scandinavia increased its net sales by 5 percent. The project market in Sweden in particular contributed to increased sales. The operating EBITA margin remains strong and rose to 14.5 percent (14.2).
Business Area Eastern Europe increased the operating EBITA margin to 6.6 percent (5.5) after a quarter of weakly increased sales (up 1 percent), retained gross margins and lower costs. The Finnish market seems to have bottomed out, but the market situation remains challenging, primarily in new build.
Business Area e-Commerce experienced a cautious e-sales market, resulting in lower sales, down 7 percent, and a weakened operating EBITA margin of 9.2 percent (10.9). The structural measures communicated in the first quarter are being implemented according to plan.
Business Area Western Europe showed sales down 8 percent, resulting in a lower operating EBITA margin of 11.1 percent (11.4). The UK continues to suffer from relatively high inflation and high interest rates, which affects the market. Despite the decline in volumes, Inwido estimates that operations in the UK have taken market share.
Outlook:
Inwido's financial targets remain unchanged and the external drivers for profitable growth remain positive. Our prospects continue to be supported by leading macroeconomic indicators and our own healthy order book. I also have good faith in the implementation of the EPBD (Energy Performance for Buildings Directive) by the EU, starting in early 2026. Although we are strengthened by our own initiatives for organic growth, acquisitions are becoming increasingly important to achieve our target of SEK 20 billion in sales by 2030. The recovery of the market has been delayed due to the prevailing external environment, but Inwido is ready and our operations are well positioned.
MALMÖ, JULY 14, 2025
Fredrik Meuller,
President and CEO
This information is such that Inwido AB (publ) is obliged to publish in accordance with the EU market abuse regulation and the Swedish Securities Market Act. The information was submitted by the below contact persons for publication on July 14, 2025 at 7:45 a.m. CET.
For more information, please contact:
Fredrik Meuller, President and CEO
Tel. +46 (0) 734 22 70 11
Peter Welin, CFO and deputy CEO
Tel. +46 (0) 703 24 31 90
About Inwido:
Inwido improves people's lives indoors with windows and doors. As Europe's leading window group, Inwido's business concept is to develop and sell the market's best customized window and door solutions through a decentralized structure and with a focus on the consumer-driven market in order to create long-term sustainable growth, organically and through acquisitions. Inwido consists of 35 business units with approximately 4,700 employees in twelve countries. In 2024 group sales amounted to SEK 8.8 billion with an operating EBITA margin of 10.8 percent. Inwido has been listed on Nasdaq Stockholm since 2014. Follow Inwido on LinkedIn.
