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Introduction & Market Context
Inwido AB (STO:INWI), Europe’s leading window group, presented its Q1 2025 interim results on April 24, 2025, reporting solid performance despite varied market conditions across its European operations. The company’s stock closed down 2.09% at SEK 195.80 following the presentation.
With a presence in 12 countries through 35 business units and approximately 4,700 employees, Inwido has positioned itself to capitalize on the green transition while working toward its ambitious goal of SEK 20 billion in sales by 2030.
As shown in the following overview of Inwido’s European footprint and key business metrics:
Quarterly Performance Highlights
Inwido reported strong financial results for Q1 2025, characterized by double-digit organic sales growth and improved profitability. Net sales increased by 10% to SEK 1,999 million compared to SEK 1,811 million in Q1 2024. The company’s operating EBITA reached SEK 111 million, up from SEK 91 million in the previous year, with the operating EBITA margin improving to 5.5% from 5.0%.
Order intake grew by 13% for the fourth consecutive quarter, with the order backlog increasing by 19% to SEK 2,660 million. Notably, project orders surged by 33%, while consumer orders showed more modest growth at 3%.
The following slide summarizes the key financial metrics for the quarter:
Earnings per share showed remarkable improvement, increasing by 78% from SEK 0.37 to SEK 0.65, while profit after tax rose 56% from SEK 28 million to SEK 44 million. The company also reported strong cash flow, with cash flow from operating activities increasing from SEK 53.0 million to SEK 131.3 million.
The detailed financial performance is illustrated in this breakdown:
Segment Performance Analysis
Inwido’s performance varied across its four business segments, reflecting the diverse market conditions throughout Europe.
The Scandinavia segment delivered the strongest performance with sales increasing by 14% to SEK 927 million. The company noted early signs of recovery in the Swedish new build market, which had been struggling in recent periods. Project orders, which account for 72% of this segment’s business, were particularly strong.
Eastern Europe also performed well, with sales growing by 18% to SEK 379 million, despite continued weakness in the Finnish new build market. Consumer orders, representing 68% of this segment’s business, showed encouraging signs of recovery.
The Western Europe segment posted modest growth of 3% to SEK 438 million, with the company stating it had gained market share in what remains a challenging environment. Ireland was described as "rather buoyant," while England remained "quite soft" with municipal budget cuts and severe weather causing project deferrals.
The e-Commerce segment was the only area to report a decline, with sales decreasing by 1% to SEK 252 million. The company attributed this to a weaker e-trade market at the start of the year, noting "lower activity overall, with fewer Google (NASDAQ:GOOGL) searches" and "fierce price pressure" that demands "a flexible and efficient setup."
The following chart illustrates the sales and operating EBITA contributions by segment:
Strategic Initiatives & Outlook
Inwido emphasized its progress on strategic priorities as part of its 2030 roadmap. The company is actively pursuing acquisitions to expand its geographic footprint, with management describing market activity as "reasonably high" while maintaining a "structured and selective M&A approach" with a "promising funnel."
Sustainability remains a key focus area, with improvements reported across all key performance indicators. Energy usage decreased from 62.1 to 54.0 kWh/wing, waste decreased from 4.16 to 3.83 kg/wing, and workplace accidents declined from 10.2 to 9.1 LTA/million worked hours.
The company is also working to capitalize on the European Green Deal, noting that "national EPBD implementation plans are being developed" and highlighting opportunities in areas like Scotland’s social housing market and the commercialization of new low-CO2 windows.
Looking ahead, Inwido’s management expressed cautious optimism for the remainder of 2025, citing the increased order backlog and consecutive quarterly growth in order intake as positive indicators. The company confirmed it remains on track with its roadmap and set targets, including the long-term goal of reaching SEK 20 billion in sales by 2030.
Financial Position & Cash Flow
Inwido continues to strengthen its financial position, with net debt further reduced during the quarter. The net debt to operating EBITDA ratio improved to 1.1x (0.8x excluding IFRS 16), well below the company’s target maximum of 2.5x and lower than the 1.4x reported in the previous year.
Capital expenditure as a percentage of sales decreased significantly from 4.6% YTD in 2024 to 2.1% YTD in 2025, contributing to the improved cash flow. Return on Operating Capital (ROOC) showed signs of improvement at 13.1%, though still below the 13.7% reported in Q1 2024.
The company’s strong financial position provides substantial headroom for its M&A strategy, which management described as "a vital part of our profitable growth strategy." With a disciplined approach to acquisitions, Inwido appears well-positioned to pursue opportunities in both existing and new markets as it works toward its 2030 sales target.
Full presentation:
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