Inwido (INWI) investor relations material

Executive summary

• Q1 2026 was seasonally challenging amid macroeconomic and geopolitical volatility, harsh winter weather, and lower activity, but March showed strong improvement and April started positively.

• Profitability returned to pre-pandemic Q1 levels, though operating EBITA declined 19% to SEK 90 million, with margin dropping to 4.3% from 5.5% year-over-year.

• Five acquisitions were completed in the last six months, including AJM Group and post-quarter Sovereign Group, expanding presence in the UK, Slovenia, Austria, and Switzerland.

• Market share gains, new product launches, and award-winning ESG and employee engagement achievements were reported.

• Continued focus on cost alignment, selective growth, and maintaining high employee engagement and sustainability achievements.

Financial highlights

• Net sales increased by 4% year-over-year to SEK 2,083 million, but organic sales declined by 2%.

• Operating EBITA fell 19% to SEK 90 million, with margin at 4.3% (down from 5.5%).

• Gross margin declined to 22.1% from 22.9% last year due to lower volumes and mix.

• Profit after taxes fell by 55%, and EPS dropped by 73% to SEK 0.18.

• Cash flow from operating activities was negative SEK 162 million, reflecting typical Q1 seasonality and lower operating results.

Outlook and guidance

• Cautious optimism for Q2 and beyond, with positive momentum in March and April and gradual improvements across business units.

• Material and energy price increases expected to impact Q2 margins, with price adjustments to offset these by Q3.

• Geopolitical risks, especially from the Middle East, may affect raw material prices and demand.

• Demand recovery is anticipated as industry volumes normalize, but visibility remains low.

• Long-term target of SEK 20 billion turnover by 2030 remains unchanged, with continued strategic acquisitions and green transition focus.