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.

• Achieved market leadership in continental Europe for interior doors, with a pro-forma 2024 revenue of CHF 604M and 8.1% EBITDA margin, aiming to become the number one door provider in Europe with a one-stop-shop model and premium branding.

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

• Product portfolio covers wood, glass, and metal solutions, focusing on innovative features, maintenance services, and enhanced project business with double-digit growth.

• Market dependency on Germany reduced from 61% to 49%, with growth in Spain and Eastern Europe, and a strong push into renovation and non-residential sectors.

Financial guidance and outlook

• 2024 pro forma sales reached CHF 604M with an EBITDA of CHF 48.7M (8.1% margin), targeting CHF 60M adjusted EBITDA and 3–5% net revenue growth in 2025.

• Midterm guidance (excluding M&A) aims for CHF 820–850M in sales and a 14–15% EBITDA margin by 2029, with CapEx normalized below 4% and free cash flow margin of 10–11%.

• Net working capital expected to remain stable at 8.1–8.5%, with lease payments rising to CHF 6M.

• Dividend policy targets up to 50% of free cash flow or over 30% of net income, with positive tax effects from recent investments and acquisitions.

• Risks considered in guidance include market heterogeneity, interest rates, and regulatory changes, but no guarantee against unforeseen events.

Operational improvements and capacity

• Production efficiency enhanced by consolidating manufacturing sites, implementing new SAP/MES systems, and investing in automation, enabling seamless order processing and reduced errors.

• Capacity reserves maintained above 30% group-wide, with significant potential in optimizing production footprints, especially with Dimoldura's efficient sites.

• Maintenance and renovation now account for 70% of business, with high visibility in specialized doors and strong demand in wooden solutions.

• Expansion in non-residential sectors (schools, hospitals, hotels) is underway, with plans to increase capacity and product offerings for these markets.

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