Analyst Comment

WindowMaster: Guidance suggests weak market conditions are bottoming out

Today, WindowMaster released its H1 2025 results. Revenue decreased by 11.6%, while order intake slowed but declined less than revenue, down 3.6% to DKK 267.8 million on a 12-month running basis. Many projects remain on hold and/or are experiencing a slower ramp-up. Furthermore, the UK market underperformed in H1 due to new building safety regulations, which have prolonged approval timelines. Product sales has slowed, whereas project sales - where WindowMaster participates as an integrator - has continued to grow.

EBITDA was impacted by both one-time costs (DKK 3.5 million for IT recovery after a breakdown, and restructuring costs) and the lower topline, leading to reduced cost absorption. This was only partially offset by a better margin mix. EBITDA came in at DKK 1.9 million compared to DKK 17 million in H1 2024. The company also maintained high marketing activity, continuing to build its opportunity pipeline.

Cash flow from operating activities in H1 2025 amounted to DKK 3.4 million (DKK 16.1 million in H1 2024). In addition to the lower operating profit, the IT breakdown increased working capital through higher debtors. This is expected to be reversed in the second half of 2025. Net interest-bearing debt at the end of H1 amounted to DKK 50.4 million, with NIBD/EBITDA at 2.3x, which is slightly above the company’s target of 2x.

WindowMaster reiterates the guidance revised in July. Revenue is expected to be in the range of DKK 270–290 million, and EBITDA is expected between DKK 22–27 million. The current mid-range guidance indicates flattish topline growth for the second half of 2025, with 13% EBITDA growth.

Supporting the expectations of stronger performance in H2, the company reports that early data from July and August shows activity picking up across all regions. Furthermore, the one-time costs will not be repeated. Marketing activity, which remained high in the first part of 2025, is expected to level out for the rest of the year and into 2026. The company also notes a build-up in the opportunity pipeline.

The improved outlook is not expected to be driven by cost restructuring. The management has, for now, decided not to adjust the fixed cost base, as the drop in activity is viewed as a short- to mid-term effect.

Tomorrow, Friday 15 August at 13:00 CET, WindowMaster's management will present the results and outline the building blocks behind their expectations for the rest of the year.

For further details, read the full report here: https://www.inderes.dk/releases/windowmaster-international-as-periodic-deceleration-in-growth-and-profitability-full-year-2025-guidance-unchanged-and-positive-outlook-into-2026

Disclaimer: HC Andersen Capital receives payment from WindowMaster for a Digital IR subscription agreement. /Michael Friis 15 August 2025 11:43 (updated 13:05).

WindowMaster was founded in Denmark in 1990 with the ambition of becoming a strong market leader in the fenestration industry. In 2015, CEO Erik Boyter led a management buy-in and listed the company on the Nasdaq First North Growth Market in Copenhagen in 2020. It has been a family-controlled, listed company since then. WindowMaster offers advanced ventilation strategies, enabling the construction industry to significantly reduce its carbon footprint. Driven by the purpose ‘To create a better world where every person has fresh air indoors and a safe built environment’, the company develops, manufactures, distributes facade and roof automation solutions for hybrid ventilation, natural ventilation, and smoke ventilation systems. WindowMaster’s actuators and control systems enable the flow of fresh air, while actuators ensure window automation. The company also provides project design assistance, ventilation calculation, installation, commissioning, integration opportunities and system training. The company benefits from strong structural tailwinds in the European building industry for both renovation and newbuild. Both applications are supported by increasing regulatory focus on energy efficiency and a more sustainable construction industry. Buildings account for roughly 40% of global energy consumption, with more than two-thirds related to heating, ventilation, air conditioning, and lighting — making WindowMaster’s solutions a high-impact lever for energy reduction. Over the past four years (2020–2024), WindowMaster has delivered profitable growth with a 12% revenue CAGR, while improving both EBITDA and cash flow. The company’s performance has shown greater resilience than the broader building materials sector, underpinned by its exposure to the more stable renovation segment, the highly regulated smoke control market, and growing investments in the green transition. A disciplined capital allocation strategy has created substantial value through investments in innovation, own production capacity, and the global sales organisation. These initiatives have cemented WindowMaster’s strong market position across core markets in Europe and North America. With a robust platform for both organic and inorganic growth, WindowMaster is well positioned to create long-term shareholder value. In 2025, the company paid its first dividend since the IPO, reflecting its healthy financial foundation and commitment to shareholder value.