Inwido (INWI) Q1 2025 earnings summary

Executive summary

• Net sales grew organically by 10% year-over-year in Q1 2025 to SEK 1,999 million, with order intake up 13% and order backlog up 19% compared to the same quarter last year.

• Operating EBITA increased by 22% to SEK 111 million, with a margin of 5.5%, up from 5.0% in Q1 2024.

• Profitability improved in all business areas except e-commerce, which faced lower demand and restructuring.

• Strong cash flow and a robust balance sheet provide significant capacity for future M&A and financial flexibility for growth.

• Strategic priorities advanced, including M&A, sustainability, and digitalization.

Financial highlights

• Net sales increased by 10% to SEK 1,999 million, with gross margin improving from 22.5% to 22.9% year-over-year.

• Operating EBITA rose 22% to SEK 111 million, with margin up to 5.5%; EPS before dilution up 78% to SEK 0.65.

• Net debt/EBITDA decreased to 1.1 (including IFRS 16), down from 1.4 last year.

• Cash flow from operating activities improved significantly, with available funds including unutilized credit at SEK 2,147 million.

• CapEx was SEK 42 million, half of last year's Q1, with gross investments in tangible assets at SEK 39 million.

Outlook and guidance

• Cautiously optimistic outlook for the remainder of 2025, supported by strong order backlog and progress on strategic priorities.

• Overhead costs expected to be higher in Q2 due to preparations for increased demand, with ongoing cost reviews.

• E-commerce restructuring measures are long-term, with gradual impact expected.

• No exposure to the USA; focus remains on European markets.

• Financial targets remain unchanged; order book and macro indicators support positive outlook.