Arbonia (ARBN) CMD 2025 summary

Strategic direction and business transformation

• Shifted focus exclusively to the interior doors business, divesting the Climate division for EUR 742M and distributing proceeds to shareholders, while acquiring Dimoldura and Lignis to expand in Spain, France, Portugal, Czech Republic, and the Middle East.

• Aims to become the number one door provider in Europe, emphasizing a one-stop-shop model with a comprehensive product portfolio and streamlined customer contact.

• Achieved market leadership in continental Europe for interior doors, with a pro-forma 2024 revenue of CHF 604M and 8.1% EBITDA margin.

• Enhanced project business, winning major contracts and delivering double-digit growth for the second consecutive year.

• Continued investment in automation and Industry 4.0, with EUR 300M invested over five years, driving operational efficiency and capacity reserves above 30%.

Financial performance and guidance

• 2024 pro forma sales reached CHF 604 million with an EBITDA of CHF 48.7 million and an EBITDA margin of 8.1%, with expectations to improve as cost synergies are realized.

• 2025 guidance targets 3–5% net revenue growth and ~CHF 60M adjusted EBITDA, with cost savings from automation and energy efficiency.

• Midterm guidance targets CHF 820–850 million in sales and an EBITDA margin of 14-15% by 2029, excluding further M&A.

• CapEx is expected to normalize below 4% of sales by 2029, supporting strong free cash flow and dividend potential as major investment programs conclude.

• Dividend policy aims for up to 50% of free cash flow or over 30% of net income, with CHF 405 million in dividends proposed if approved.

Market outlook and growth opportunities

• Reduced dependency on the German market from 61% to 49% of sales, with Spain, Iberia, and Eastern Europe identified as high-growth regions.

• Market share stands at 10-12% in Europe, with significant capacity for growth and production expansion.

• Renovation now accounts for 70% of business versus 30% new construction, with energetic renovations declining and more budget shifting to aesthetic upgrades.

• German construction market expected to stabilize in 2025, with government stimulus and interest rate cuts supporting recovery, but federal funding impact expected only from 2028-2029.

• Urbanization and aging building stock in Europe drive long-term demand for both new builds and renovations.