Inwido (INWI) CMD 2025 summary

Strategic roadmap and growth targets

• Committed to reaching SEK 20 billion in sales by 2030, requiring a 15% CAGR, with 10% from M&A and 5% from organic growth, supported by operational improvements and a focus on profitable growth in a fragmented European window and door market.

• Recent acquisitions in the UK, Slovenia, and Sweden, including Victorian Sliders, AJM, RM Snickerier, and Fast Frame, expand geographic reach and add strong brands with synergy potential.

• The company leverages the EU Green Deal and Energy Performance of Buildings Directive (EPBD) for future growth, with significant tailwinds expected from 2026.

• Decentralized governance empowers local business units, supported by best practice sharing, talent development, and group synergies.

• Investments in automation, IT, operational efficiency, and people are expected to drive higher profitability as volumes recover.

Market conditions and business performance

• Operating in a historic downturn, with volume declines of 25%-30% since 2022, but margins have remained stable with only a 1% margin decline.

• Scandinavian markets show early signs of recovery, especially Sweden, while Finland and the UK remain challenging.

• The European window and door market is valued at €60 billion, with high entry barriers and strong demand for energy efficiency.

• E-commerce and solar shading segments are growing, with solar shading offering higher margins (15-20%+ EBIT).

• The company has maintained a strong balance sheet, negative working capital, and consistent dividend payouts.

M&A strategy and execution

• Over 50 acquisitions completed in 20 years, adding SEK 4.2-4.5 billion in turnover; recent focus is on larger, profitable targets with strong market positions and synergy potential.

• Acquisition multiples typically range from 5-7x EBITDA, occasionally up to 8x for unique assets.

• The M&A pipeline is robust, with increased seller willingness and more sizable opportunities compared to last year.

• Preference for majority stakes with call/put options, aligning interests and facilitating integration.

• Structured approach focuses on market leadership, profitability, management compatibility, and synergy opportunities.