Inwido Q2 2025 slides: stable margins despite challenging markets, all-time high order backlog

Introduction & Market Context

Inwido AB (STO:INWI), Europe’s leading window group, presented its Q2 2025 interim results on July 14, 2025, highlighting stable development despite challenging market conditions. The company, which ranks first in the Nordic region and second in the UK, maintained its operating margins while reporting an all-time high order backlog.

Trading near its 52-week low at SEK 177.90 after falling 1.35% following the earnings announcement, Inwido continues to navigate a market environment where expected recovery has been further delayed. The company emphasized its strengthened market positions and share gains across key regions.

Quarterly Performance Highlights

Inwido reported organic sales growth of 3% in Q2 2025, with net sales reaching SEK 2,339 million compared to SEK 2,331 million in the same period last year. Despite price pressure, mix challenges, and negative foreign exchange impacts, the company maintained its operating EBITA margin at 11.3%.

As shown in the following detailed financial comparison:

Profit after tax increased to SEK 165 million from SEK 154 million in Q2 2024, resulting in earnings per share growth of 6.7% to SEK 2.69. The company’s return on operating capital (ROOC) improved to 13.4% from 13.1% a year earlier.

While order intake decreased by 8% organically, Inwido achieved an all-time high order backlog of SEK 2,829 million, representing a 9% organic increase compared to the previous year (SEK 2,654 million).

The company’s financial position strengthened further with reduced gearing, as illustrated in this chart:

Net debt relative to operating EBITDA improved to 1.2x from 1.4x last year, or 0.9x excluding IFRS 16 effects (down from 1.1x). This improvement came despite a dividend payment of SEK 319 million during the quarter, providing Inwido with additional financial headroom for future growth initiatives.

Regional Performance Analysis

Inwido’s performance varied significantly across its four business areas, with Scandinavia and Eastern Europe showing growth while e-Commerce and Western Europe experienced declines.

The Scandinavian business area delivered the strongest results, with sales increasing 5% to SEK 1,168 million and operating EBITA rising to SEK 169 million, improving the margin to 14.5% from 14.2%. This growth was primarily driven by the project market in Sweden.

Eastern Europe also performed well with sales growing 1% to SEK 443 million and operating EBITA increasing to SEK 29 million, resulting in a margin improvement to 6.6% from 5.5%. The growth was attributed to increased project sales.

In contrast, e-Commerce faced continued challenges with sales declining 7% to SEK 289 million and operating EBITA decreasing to SEK 26 million, reducing the margin to 9.1% from 10.8%. This aligns with the earnings call transcript, which noted a 24% decline in e-commerce sales in Sweden during April-May.

Western Europe similarly experienced headwinds with sales decreasing 8% to SEK 433 million and operating EBITA falling to SEK 48 million, with margins declining to 11.1% from 11.4%.

Sustainability Progress

Inwido highlighted positive trends across all sustainability-related key performance indicators, as shown in the following summary:

Energy usage per window wing decreased to 51.1 kWh from 61.2 kWh year-over-year, while waste per wing fell to 3.74 kg from 4.22 kg. The company also reduced workplace accidents and both short-term and long-term sick leave.

Notably, Inwido was included in the Financial Times list of Europe’s 600 Climate Leaders, ranking 12th in the Construction and Building materials segment. The company also received an improved A- classification in the latest CDP report on Supplier Engagement Assessment.

Strategic Initiatives & Outlook

Inwido reported progress on its 2030 roadmap, which targets SEK 20 billion in sales by 2030, up from the current SEK 9 billion. Key strategic priorities include:

1. Pursuing acquisitions to expand geographic footprint and exploit synergies

2. Driving and commercializing the "Green Deal" to increase awareness and customer demand

3. Attracting and developing talented people to secure future leadership

4. Sharing knowledge across the organization to excel in pricing, purchasing, and productivity

5. Embracing technology to raise digitalization and automation levels

The company’s financial performance over recent quarters shows a positive trend in return on operating capital, as illustrated in this chart:

Looking ahead, CEO Fredrik Muller expressed confidence despite the delayed market rebound, citing the company’s all-time high order backlog and strengthened market positions. During the earnings call, he stated, "We are managing the situation really well. We’re maintaining our profits despite a less favorable mix and despite an FX impact."

Inwido’s management highlighted high M&A activity with a promising pipeline, suggesting potential acquisitions before year-end to support the company’s 2030 growth targets. The company also announced the appointment of Malin Cullin as EVP People & Culture starting September 1, 2025.

With fundamentals described as strong despite current market challenges, Inwido remains focused on leveraging energy efficiency regulations and the green transition as key growth drivers while maintaining operational efficiency to navigate the uncertain market environment.

Full presentation:

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