Inwido AB (publ) Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sofia Sorling - Carnegie Investment Bank AB - Analyst : Thank you, Sofia here from DNB Carnegie. Can you hear me?

Question: Sofia Sorling - Carnegie Investment Bank AB - Analyst : Thank you. Okay. First question, a little bit on pricing and volumes. You mentioned that volumes are quite dampening all the business areas. But can you say anything about prices? Have you lowered your prices and also in each of the divisions?

Question: Sofia Sorling - Carnegie Investment Bank AB - Analyst : Alright, okay, thank you. And if you go to Scandinavia, you mentioned that the project market, especially in Sweden, is quite strong. Could you say which type of customer segments is driving this demand, would you say?

Question: Sofia Sorling - Carnegie Investment Bank AB - Analyst : Okay. Yeah, and I noticed that the EBITA margin in Scandinavia is very strong during the quarter, and it's an improvement year-over-year with about 30 bps. Do you think it's sustainable into the second half of 2025 to keep this increase -- improved margin year-over-year if I --

Question: Sofia Sorling - Carnegie Investment Bank AB - Analyst : All right. Let's move on to e-Commerce. You mentioned that you have implemented some structural measures. Is that something you expect will continue into the second half of 2025 or is it something that you have already implemented and we can already see this reflected in the financials?

Question: Sofia Sorling - Carnegie Investment Bank AB - Analyst : Okay, thank you. Yeah, a lot of questions here, but a final one from my side. So we mentioned this Energy Performance for Buildings Directive and that it might -- that it will be implemented next year. But do you see any risk that this directive is already reflected in your volumes during 2025 or do you expect more of an acceleration in volumes into or during 2026?

Question: Sofia Sorling - Carnegie Investment Bank AB - Analyst : Okay, thank you so much for your answers.

Question: Jonny Jin - SEB Equities - Analyst : Hello. Can you hear me? Hi, it's, Jonny from SEB here. Good morning to Fredrick and Peter. Thank you for taking my question. I just want to start a little bit on the sales and the conversion ratio here in the quarter. I want to understand that a little bit better. So I mean if you're looking at the conversion ratio compared to your backlog, you ended in Q1, it seems to be around 88% during the quarter. And this seems to be a little bit low in a historical context. But then I also know that you have more project business in the mix now as you have highlighted. But I mean even compared to last year, it's still low. And if I recall correctly, you also said that some sales rolled over from Q1 into Q2 due to some weather conditions here in Western Europe. So my question is really, did something special happen here during the quarter that affected deliveries? Or how should we think about the conversion ratios here going forward, given your change in the mix? That's my first question.

Question: Jonny Jin - SEB Equities - Analyst : Okay, I understand. So it's maybe fair to say that the conversion ratio in this quarter is normal and that this is the new normal here going forward as well? Is that fair to say, would you say?

Question: Jonny Jin - SEB Equities - Analyst : Okay, yeah, that's clear. Thank you. And then I just want to follow up on your comment around the uncertain macro conditions here. And you mentioned some postponed recovery. I mean how was the momentum during the quarter, would you say o-r were there any clear shifts? And I think, if I heard you correctly, you said that there were some stronger sales towards the end of the quarter, which affected the cash flow as well. So how is the momentum going into Q3 here? Is it -- have we seen a pickup, would you say or is it rather same?

Question: Jonny Jin - SEB Equities - Analyst : Yeah, okay, that's fair. But I mean, I suppose you always have a little bit of seasonality here during the quarter. I mean if you compare the momentum year-over-year or so to speak, is it a clear shift or --

Question: Jonny Jin - SEB Equities - Analyst : Understand, understand. We'll see. But I also think that your comment around the project business in Sweden is rather interesting, especially tying that to your new and more efficient factory in Vetlanda now. So maybe could you maybe comment something around how is utilization rates in that factory at the moment? And given your new and more efficient plant in Vetlanda, as opposed to that you have also lifted your lowest level, if you know what I'm trying to say here. So are there more upside for the margin, would you say if we fill the factories in Vetlanda? And can you also maybe quantify that a little bit, the magnitude we can expect?

Question: Jonny Jin - SEB Equities - Analyst : Okay, yeah, that's clear, but I mean, if we're trying to the magnitude a little bit of that, I don't know it is in my head right now, but let's say that you did 10% margin in Vetlanda before, could you maybe do 11% now if you feel the factories or is that fair, what would you say?

Question: Jonny Jin - SEB Equities - Analyst : Oh yeah, I understand, yeah. It's a lot of moving parts and you have the efficiency gain and also have the change in mix. But I mean, if we would compare the same mix as before and now after the change in Vetlanda, I suppose that there should be a little bit more margin upside. Is that fair? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 14, 2025 / 8:00AM, INWI.ST - Q2 2025 Inwido AB (publ) Earnings Call

Question: Jonny Jin - SEB Equities - Analyst : Okay, yeah, that's good. And then just one final. I mean, I've been asking this repetitively. But I mean coming back to M&A a little bit, it's an important part of your strategy and your targets ahead. Maybe, I mean, could you shed some more elaborating comment on the update? How that is going? And if I recall you correctly, you said before that you are targeting some larger targets now on new markets. And I suppose the discussions are ongoing and can take some time. But if they come and once they come, the larger platform acquisitions, let's say, is it fair to assume that we can see an acceleration after that when you build on smaller acquisitions on that larger platform? Is that a fair assumption, would you say?

Question: Jonny Jin - SEB Equities - Analyst : Yeah, we'll see, if we need to follow up on that, it is exciting. But if we would say -- I know timing is hard, but if you haven't closed one or two acquisitions before the end of this year, would you say that you would be disappointed then? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 14, 2025 / 8:00AM, INWI.ST - Q2 2025 Inwido AB (publ) Earnings Call

Question: Jonny Jin - SEB Equities - Analyst : Okay, that's, yeah, we will follow up. Exciting. Okay, thank you so much. That was all for me.