Inwido shares drop 9% as Q2 orders slide amid weak household demand

Published 14/07/2025, 07:40
Updated 14/07/2025, 09:30
© Reuters.

Investing.com -- Shares of Inwido (ST:INWI) fell over 9% on Monday after the company reported a 7% drop in second-quarter order intake, citing continued market uncertainty and delayed recovery in household demand, despite stable sales and earnings.

Net sales for the quarter rose slightly to SEK 2.34 billion from SEK 2.33 billion a year earlier, with organic growth of 3%. 

Operating EBITA was unchanged at SEK 264 million, keeping the EBITA margin steady at 11.3%. 

EBIT increased to SEK 237 million from SEK 228 million, and the EBIT margin rose to 10.2% from 9.8%.

Earnings per share before and after dilution increased to SEK 2.69 and SEK 2.68, respectively, up from SEK 2.52. 

The stronger Swedish krona reduced translated earnings from foreign subsidiaries by SEK 9 million during the quarter.

Adjusted for currency effects, the order backlog rose organically by 9% to SEK 2.83 billion as of June 30, compared with SEK 2.65 billion a year earlier. 

The company attributed the decline in order intake mainly to a one-off record order received in the same quarter last year by its Irish unit, Carlson.

For the January–June period, net sales increased 5% to SEK 4.34 billion from SEK 4.14 billion. 

Organic growth was 6%. Operating EBITA rose to SEK 375 million from SEK 354 million, and the EBITA margin edged up to 8.6% from 8.5%. 

EBIT rose to SEK 330 million from SEK 301 million, while the EBIT margin grew to 7.6% from 7.3%.

Earnings per share before and after dilution were SEK 3.34 and SEK 3.33, respectively, up from SEK 2.89. Return on operating capital improved to 13.4% from 13.1%. Net debt was reduced to 1.2x operating EBITDA, or 0.9x excluding IFRS 16.

In Business Area Scandinavia, net sales grew 5%, with support from the Swedish project market. The operating EBITA margin rose to 14.5% from 14.2%.

Eastern Europe posted a 1% sales increase and improved its EBITA margin to 6.6% from 5.5%, citing stable gross margins and reduced costs. In Finland, conditions remained challenging, especially in new construction.

The e-Commerce segment saw sales decline 7%, and the EBITA margin dropped to 9.2% from 10.9%. Structural changes announced earlier in the year are proceeding as scheduled.

Western Europe’s sales fell 8%, and the EBITA margin slipped to 11.1% from 11.4%. The UK market remained affected by high inflation and interest rates.

Inwido reaffirmed its long-term financial targets and said acquisition activity remains a strategic focus, although decision timelines have lengthened due to external conditions.

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