INDUS (INH) 16th IIF - International Investment Forum summary

Strategy and business model

• Focuses on acquiring and developing small and medium-sized engineering companies across three segments: Engineering, Infrastructure, and Materials.

• Aims for long-term, sustainable growth with a target of EUR 3 billion in sales by 2030, including EUR 600 million from acquisitions.

• Operates as an 'evergreen' financial investor, supporting succession in German Mittelstand companies.

• Management board consists mainly of experienced engineers, emphasizing operational expertise.

• Active portfolio development includes in-house experts focusing on operational excellence, innovation, and sustainability.

Financial performance and outlook

• Generated EUR 1.7 billion in sales and EUR 154 million EBITDA in 2024, with strong free cash flow generation.

• Free cash flow was nearly EUR 200 million in 2023 and EUR 135 million in 2024; guidance for 2025 is over EUR 90 million.

• H1 2024 sales remained stable despite a weak economy; Q2 outperformed the previous year.

• Adjusted EBITDA dropped 24% in H1, but recovery is expected in H2 due to backend-loaded segments.

• Maintains leverage between 2 and 2.5x EBITDA, with an equity ratio of 38%.

Strategic initiatives and internationalization

• New strategy 'empowering Mittelstand' focuses on internationalization, M&A, and technology.

• Plans to invest EUR 500 million in acquisitions by 2030, expanding in Europe and the U.S.

• Five add-on acquisitions completed in H1 2024 for EUR 22 million; further deals expected.

• Venture clienting program launched to foster collaboration with startups without M&A.

• Scandinavian region identified as a continued target area for expansion.