This article first appeared on GuruFocus .
Release Date: July 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Inwido AB ( FRA:5IW ) achieved its highest operating EBITDA to date for a second quarter, indicating strong financial performance.
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The company reported a 16% increase in sales compared to the previous year, with organic growth of 4%.
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Inwido AB ( FRA:5IW ) successfully completed two acquisitions in the UK and Croatia, expanding its market presence to 15 countries.
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The order backlog reached an all-time high, boosted by a record-sized project order for Saidi Solutions in Scotland.
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Cash flow was strong in the quarter, with gearing at a comfortable level of 1.8 times on a pro forma basis, providing a solid foundation for future acquisitions and investments.
Negative Points
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The ongoing Middle East conflict continues to impact demand and supply, creating market uncertainty.
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Raw material price inflation remains a challenge, with the company still working to pass on these costs to consumers.
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The consumer market in the UK is challenging, with significant price pressure and political turmoil affecting demand.
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Finland faces fierce competition and price pressure, resulting in low volumes and a challenging market environment.
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The company anticipates a negative impact from material inflation in Q3, with full compensation expected only by Q4.
Q & A Highlights
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Q: The gross margin appears strong despite higher raw material costs. Is this due to higher volumes and a beneficial mix? Can you split the price effect on organic growth this quarter? A: (CFO) The gross margin has improved due to higher efficiency in production, allowing increased volume without significantly raising costs. This compensates for material price inflation, which has been negative for the group. The improvement is mainly due to volume and efficiency enhancements.
Q: Will the price effect be more visible in Q3 and onwards? How much have prices increased on average? A: (CEO) In Sweden, for example, there has been an annual price increase of roughly 3.5% for 2026, with additional increases of 3.5% to 4% to balance surcharges. Further price increases are possible if the conflict continues, especially in Scandinavia and e-commerce.
Q: Are raw material prices still climbing, or have they settled at a higher level? A: (CEO) Raw material prices are still moving. We've had a first wave of increases, and negotiations have been somewhat successful in mitigating them. However, the conflict's continuation means we haven't seen the end of this issue.
Q: What is your outlook for demand in the second half of the year? Can we expect similar organic growth rates in Q3? A: (CEO) There is cautious optimism due to a record-high order backlog, but the market remains bumpy. The order intake and organic growth provide some comfort, but the situation varies by market, with some showing improvement and others remaining challenging.
Q: In Finland, volumes and price pressure remain low. Are there signs of stabilization, and would you consider restructuring smaller loss-making units? A: (CEO) There are some positive signs, such as potential government incentives and cost alignment efforts. However, restructuring smaller entities is not excluded and could occur in Q4 or early next year if necessary.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
