Q2 2026 WindowMaster International AS Earnings Call

August 21, 2026

Speaker #1: Welcome to today's event, where we have the pleasure to present WindowMaster, as we can see here on the front plates. Half here will report, half here results is the topic of today: fresh from press this—what do you say, morning? But it's more midday.

[Analyst]: Welcome to today's event, where we have the pleasure to present WindowMaster. As we can see here on the front page, H1 report, H1 results is the topic of today. Fresh from press this, I would say morning, but it's more midday. To help us through today's presentation, we are joined by CEO, Erik Boyter, and CFO, Steen Overgaard Sørensen. Steen will do most of the financial presentation, and Erik will join us in the Q&A session. As always, there's a box down below. Feel free to ask questions. We will do the Q&A at the end of the sessions, but do feel free to do it during the presentation. Do feel free to do it in Danish. I will translate to the best of my abilities. For now, I will hand the call over to you, Steen.

Michael Friis: Welcome to today's event, where we have the pleasure to present WindowMaster. As we can see here on the front page, half year report, Half year results is the topic of today. Fresh from press this, I would say morning, but it's more midday. To help us through today's presentation, we are joined by CEO, Erik Boyter, and CFO, Steen Overgaard Sørensen. Steen will do most of the financial presentation, and Erik will join us in the Q&A session. As always, there's a box down below. Feel free to ask questions. We will do the Q&A at the end of the sessions, but do feel free to do it during the presentation. Do feel free to do it in Danish. I will translate to the best of my abilities. For now, I will hand the call over to you, Steen.

Speaker #1: To help us through today's presentation, we are joined by CEO Erik Boyder and CFO Steen Aalborg Sørensen. Steen will do most of the financial presentation, and Erik will join us in the Q&A session.

Speaker #1: As always, there's a box down below; feel free to ask questions. We will do the Q&A at the end of the session, but do feel free to submit them during the presentation.

Speaker #1: Do feel free to do it in Danish; I will translate to the best of my abilities. But for now, I will hand the call over to you, Steen.

Speaker #2: Thank you very much. As you mentioned, we sent out the financial report this morning for the first half of the year, and I'm just running through some of the highlights of that report.

Steen Overgaard Sørensen: Thank you very much. As you said, we sent out the financial report this morning for the H1, and I'm just running through some of the highlights of that report. First of all, if I start actually with the pipeline, we see a strong pipeline development here in actually in Q2 and Q3. Especially from our partnership we have with VEKA, which is a louver solution that supports our business also. There we see a growth, which is also, when we look into the rest of the year and also into 2027, is supporting our ambitions that we want to grow for the future. If you look at the order intake, we have this time, looked a little bit differently on the way we present.

Speaker #2: First of all, if I start actually with the pipeline: we see a strong pipeline developing here in Q2 and Q3, especially from our partnership with Figure, which is a Luva solution that supports our business as well.

Speaker #2: There we see a growth, which is also—when we look into the rest of the year and also into 2027—supporting our ambitions that we want to grow for the future.

Speaker #2: But if you look at the all-intake, we have this time looked a little bit differently at the way we present. We have three business areas within WindowMaster, which consist of what we call the Building business area, which is project-driven, where we are deeply involved in the solution that is implemented.

Steen Overgaard Sørensen: We have three business areas within WindowMaster, which consists of what we call building business area, which is project-driven, where we are deeply involved in the solution that is implemented. Then we also have a product segment or business area, which is more over the counter and also towards the key accounts. That's where we don't necessarily have the contact to the final installation or customer. Finally, we have what is called safety business area, which is also a company called Climatic A/S. It's mainly focused on the Danish market and a bit in Germany. Also, if you have read our statement from this morning, we are looking whether to divest in this business area. That's why we want to focus a little bit more on, you could say, the core business of WindowMaster, which is our solution within fire and also natural ventilation.

Speaker #2: Then we also have a product segment or business area, which is more with a counter and also towards the key accounts. That's where we don't necessarily have the contact with the final installation or customer.

Speaker #2: And finally, we have what is called the safety business area, which is also a company called Climatic AS. It's mainly focused on the Danish market and a bit in Germany.

Speaker #2: And also, if you have read our statement from this morning, we are looking at whether to divest in this business area. And that's why we want to focus a little bit more on, you could say, the core business of WindowMaster, which is our solutions within fire and also natural ventilation.

Speaker #2: And that's why we have split it up like that, because we do see quite a strong development in our order intake on this building business area, where we've seen growth over the last 12 months.

Steen Overgaard Sørensen: That's why we have split it up like that, because we do see quite a strong development in our order intake on this building business area where we've seen a growth over the last 12 months, compared to the previous 12 months of 31%, which is pretty strong and also fit with our strategy that we set out in 2022. We unfortunately see a little bit of a decline in our product business area. We have lost some key accounts, but we have quite an ambitious goal to regain some of that market share, and that we are focusing on as we speak. Finally, the safety business is declining in order intake, and that's also why we have taken the decision to look for potentially other owners of that activity. However, the pipeline in the safety business is strong and solid, so there's activity out there.

Speaker #2: Compared to the previous 12 months of 31%, which is pretty strong and also fits with our strategy that we set out in 2022, we unfortunately see a little bit of a decline in our product business area. We have lost some key accounts, but we have quite an ambitious goal to regain some of that market share.

Speaker #2: And that we are focusing on as we speak. And finally, the safety business is declining in order intake, and that's also why we have taken the decision to look for potentially other owners of that activity.

Speaker #2: However, the pipeline in the safety business is strong and solid, so there's activity out there. If we jump to the next slide here, I have also put up the net sales, and that's also stated in our guidance back from May.

Steen Overgaard Sørensen: If we jump to the next slide here, I have put also the net sales and that is also stated in our guidance back from May, we did see a very slow Q1, primarily linked to weather conditions. A lot of building project was postponed, and could not be put into the ground, and that gives a delay in the whole construction phase or refurbishment phase within the building industry. Especially also the Climatic activity was pretty hardly on that because of the weather, so we could not go on the roof due to snow on roof surfaces. We are back on track and as also we see here in Q2, we are pretty strong. Again, especially within the building business area, we see a strong development and that is also continuing to what we know of Q3. So we are optimistic on that.

Speaker #2: We did see a very slow Q1, primarily linked to weather conditions. A lot of building projects were postponed and could not be put into the ground, and that gives a delay in the whole construction phase or refurbishment phase within the building industry.

Speaker #2: And especially also, the climatic activity was pretty hard on that because of the weather. So we could not go on the roof due to snow on roof surfaces.

Speaker #2: But we are back on track, and as we also see here in Q2, we are pretty strong. Again, especially within the Building business area, we see strong development, and that is also continuing into what we know of Q3.

Speaker #2: So we are optimistic on that. Finally, yeah, the EBITDA and EBIT levels—they match to the model we have in WindowMaster on there.

Steen Overgaard Sørensen: Finally, the EBITDA and EBIT levels, they match to the model we have in WindowMaster and there we see, you could say once the turnover is there, then also profitability is following. We see in here an EBITDA ratio of close to 10%. It is not at the level we wish to be. We want to be at 15%, but still we are on that track from a profit point of view. Finally here also we have the key figures or the key numbers, as also put into the statement early on. There are no surprises as such. There are no special circumstances here. Net working capital, if we take that and focus on that, then it is a little bit higher, but that is due to seasonality and more activity here in Q2.

Speaker #2: We see, once the turnover is there, then also profitability is following. We see in here an EBITDA ratio of close to 10%. It's not at the level we wish to be.

Speaker #2: We want to be at 15, but still, we are on that track from a profit point of view. Finally, here also, we have the key figures or the key numbers.

Speaker #2: As also mentioned in the statement early on, there are no surprises as such; there are no special circumstances here. Net working capital—if you check that and focus on that—then it's a little bit higher, but that is due to seasonality and more activity.

Speaker #2: Here in the second—or, sorry, in Q2—net working capital is also a little bit on the high side. But as we normally see, also for the second half of this year, activity is picking up, and that means that net working capital will decline in the second half. That's also a pattern we saw back in 2025.

Steen Overgaard Sørensen: Net working capital is also a little bit on the high side, but as we normally see also for the H2 of this year, activity are picking up, and that means that net working capital will decline in the H2. That is also a pattern we saw back in 2025. We assume and expect that pattern to also be the case for 2026. Finally, equity ratio, again, linked to the poor performance in Q1 mainly. Here we also do expect that we will be back on the level we saw also in the year 2025, and expect in the range of close to 25% when we end the year, as it looks right now. All in all, these numbers support the guidance we also put forward as stated here.

Speaker #2: And we assume and expect that pattern to also be the case for 2026. And finally, equity ratio—again, yeah—linked to the poor performance in Q1 mainly.

Speaker #2: Here we also do expect that we will be back on the level we saw also in 2025—yeah, in the year 2025—and expect in the range of close to 25% when we end the year, as it looks right now.

Speaker #2: All in all, these numbers support the forward guidance in here as stated. So we do expect a turnover of 285 to 305, and also an EBITDA level of 30 to 40 million.

Steen Overgaard Sørensen: We do expect a turnover of DKK 285 to 305 million, and also an EBITDA level of DKK 30 to 40 million. That is supported, again, by the pipeline, but also the order intake as we see it right now. Again, coming from this strong business area of buildings where we continue to see growth occurring. So on that note, we are positive, and it is also supported by the numbers we are looking into from July, but also what we see on the order intake for August as of today. I think that was it from the half-year account, and I think I will let it over to you.

Speaker #2: That is supported, again, by the pipeline, but also the order intake as we see it right now. And again, coming from this strong business area of buildings, where we continue to see growth occurring.

Speaker #2: So, on that note, we are positive. This is supported not only by the numbers we are looking at from July, but also by what we see in the order intake for August as of today.

Speaker #2: I think that was it from the half-year account, and I think I'll hand it over to you.

Speaker #1: Perfect. Let's jump into some questions. Yeah, there are some questions about Climatic—there's one here: Is it a possibility to close it? Has that been a possibility, or do you think there is value for a buyer? And there's also one asking, what is the field of buyers?

[Analyst]: Perfect. Let's jump into some questions. There are some questions about Climatic. There's one here. Is it a possibility to close it? Has that been a possibility, or do you think there is a value for a buyer? There's also one asking what is the field of buyers? Are there any competitors? Are there any capital funds, equity funds that could be looking into that? So, a little bit about is there a value in Climatic? You are talking about they actually have order momentum, and it is a sale and not a closure? Maybe a little bit about the fields of potential buyers.

Michael Friis: Perfect. Let's jump into some questions. There are some questions about Climatic. There's one here. Is it a possibility to close it? Has that been a possibility, or do you think there is a value for a buyer? There's also one asking what is the field of buyers? Are there any competitors? Are there any capital funds, equity funds that could be looking into that? So, a little bit about is there a value in Climatic? You are talking about they actually have order momentum, and it is a sale and not a closure? Maybe a little bit about the fields of potential buyers.

Speaker #1: Are there any competitors? Are there any capital funds or equity funds that could be looking into that? So, a little bit about—is there a value in Climatic? You're talking about how they actually have auto momentum, and it is a sale and not a closure?

Speaker #1: And maybe a little bit about the fields of potential buyers.

Speaker #2: Maybe I should respond to that one. We see more value in selling the business off to potential buyers, and those could be either in Denmark, or it could also be that they would be in the Nordic market—Norway or Sweden.

Steen Overgaard Sørensen: Well, maybe I should respond to that one. We see more value in selling the business off to potential buyers, and those could be either in Denmark, or it could also be that they would be in the Nordic market, in Norway or Sweden. You could say, also, if you look into the business, there's a lot of service contracts, and there is also a pipeline of opportunities. Unfortunately, they have not materialized yet, but there is going forward. So we reckon we can sell most of the business for a price and get out of it with skin in the game, you could say. Also the questions about closing it down, that is not something we wish to do, and that would actually have a bigger negative impact than selling the activities off.

Speaker #2: And this—and you could say, what are we also—if you look into the business, there's a lot of service contracts, and there is also a pipeline of opportunities.

Speaker #2: Unfortunately, they have not materialized yet, but there is progress going forward. So we reckon we can sell most of the business for a price and get out of it with skin in the game, you could say.

Speaker #2: But—and also, the questions about this, about closing it down, that is not something we wish to do, and that would actually have a bigger negative impact than selling the activities off.

Speaker #2: So, we are optimistic that we can find a potential buyer for the activity.

Steen Overgaard Sørensen: We are optimistic that we can find a potential buyer for the activity.

Speaker #1: And to stay in the Climatic—and maybe also a little bit about the message—but first, when I read it, it was 3 million that had cost it on the bottom line, and then you mentioned 10 million.

[Analyst]: To stay in Climatic, and maybe also a little bit about the message, but first, when I read it was DKK 3 million that it had costed on the bottom line, and then you mentioned DKK 10 million. I think people are putting it together. Could we have the explanation? You are indicating that you will go after cost savings in 2027 of DKK 10 million, and Climatic is a part of that, but I think that was DKK 3 million. Maybe we can specify a little bit on how that should be.

Michael Friis: To stay in Climatic, and maybe also a little bit about the message, but first, when I read it was DKK 3 million that it had costed on the bottom line, and then you mentioned DKK 10 million. I think people are putting it together. Could we have the explanation? You are indicating that you will go after cost savings in 2027 of DKK 10 million, and Climatic is a part of that, but I think that was DKK 3 million. Maybe we can specify a little bit on how that should be.

Speaker #1: I think people are putting it together as, could we have the explanation—you know, you’re indicating that you will go after cost savings in 2027 of DKK 10 million, and Climatic is a part of that. But I think that was DKK 3 million.

Speaker #1: Maybe we can specify a little bit more on how that could be understood.

Speaker #2: Yeah, it's because actually the 10 million relates to other costs, also other cost savings. But what we are saying here is that last year we had a negative impact on our financial results of 3.1 million.

Steen Overgaard Sørensen: Yeah. It's because actually, the DKK 10 million relates to also other cost savings. But what we are saying here is that last year we had a negative impact on our financial results on DKK 3.1 million, and we expect could be similar this year, depending on what we can sell it off to and also some cost savings and so on. But the impact we are trying to look at is around DKK 10 million, going into 2027. We have actually also had some cost reductions on employees, which was announced today to the organization. This will impact fully around DKK 10 million, including Climatic. If we look at the kind of 2025, then it's around DKK 10 million impact. Yeah.

Speaker #2: And we expect it could be similar this year, depending on what we can sell it off to, and also some cost savings and so on.

Speaker #2: But the impact we are trying to look at is around 10 million going into 2027. We have actually also had some cost reductions on employees, which was announced today to the organization.

Speaker #2: So—and this impact, or this will impact fully, around 10 million, including Climatic. If we look at the kind of 2020 or 2025, then it's around a 10 million impact, yeah.

Speaker #1: So, 10 million. The base year, and then that will give you an estimated 10 million. Can we talk a little bit about that? Because it actually looks like your order book is accelerating in your project division.

[Analyst]: So-

Michael Friis: So-

Steen Overgaard Sørensen: That's how we calculate it.

[Analyst]: The base year, and then that will give you an estimated DKK 10 million.

Michael Friis: The base year, and then that will give you an estimated DKK 10 million.

Steen Overgaard Sørensen: Yeah.

[Analyst]: Can we talk a little bit about that? Because actually, it looks like your order book is accelerating in your project division, and that is somewhere where you have to hire people to keep the projects there. So a little bit about how you balance this cost savings with actually the ambitions and what looks to be an accelerating project business for you.

Michael Friis: Can we talk a little bit about that? Because actually, it looks like your order book is accelerating in your project division, and that is somewhere where you have to hire people to keep the projects there. So a little bit about how you balance this cost savings with actually the ambitions and what looks to be an accelerating project business for you.

Speaker #1: And that is somewhere where you have to hire people, you know, to keep the projects there. So, a little bit about how you balance this cost saving with actually the ambitions and what looks to be an accelerating project business for you.

Speaker #2: Yeah, actually, so if we look into what we have done on the employee side, you can say it's part of the Climatic overall accounts.

Steen Overgaard Sørensen: Yeah. Actually, if we look into what we have done on the employee side, you would say as a part is the Climatic overall accounts.

Speaker #2: Then we have looked into our business overall, and we have reduced the number of business development managers that create specification sales across our different markets—that's the UK, Germany, and Switzerland.

Erik Boyter: Then we have looked into our business all over, and we have reduced an amount of business development managers that create specification sales around in our different markets. That is UK, Germany, and Switzerland. We have also reduced in Denmark, where we have reduced people that have in connection with Climatic. Overall, that is the DKK 10 million, but we do not see that the reductions in the business development side will have a negative impact on our business, because we are also looking at the We have IT systems that makes the rest of the business development managers around be more efficient and more on a higher performance level. Yeah.

Steen Overgaard Sørensen: Then we have looked into our business all over, and we have reduced an amount of business development managers that create specification sales around in our different markets. That is UK, Germany, and Switzerland. We have also reduced in Denmark, where we have reduced people that have in connection with Climatic. Overall, that is the DKK 10 million, but we do not see that the reductions in the business development side will have a negative impact on our business, because we are also looking at the We have IT systems that makes the rest of the business development managers around be more efficient and more on a higher performance level. Yeah.

Speaker #2: And we have also reduced in Denmark, where we have reduced people in connection with Climatic, so overall that is the 10 million.

Speaker #2: But we are—we don't see that the reductions on the business development side will have a negative impact on our business, because we are also looking at—we have IT systems that make the rest of the business development managers around be more efficient and operate at a higher performance level, yeah.

Speaker #1: Sure, sure, sure. And then there's a little bit about the investments in Germany. You mentioned these 20 million. There's a question here: is that in 2027 or 2028?

[Analyst]: True. Then there is a little bit about the investments in Germany. You mentioned these DKK 20 million. There is a question here, is that in 2027, 2028? How should we divide in that? Is the DKK 20 million you want to put into your factory in Germany, is that isolated to 2026 or is it also divided into the coming years, 2027 and 2028?

Michael Friis: True. Then there is a little bit about the investments in Germany. You mentioned these DKK 20 million. There is a question here, is that in 2027, 2028? How should we divide in that? Is the DKK 20 million you want to put into your factory in Germany, is that isolated to 2026 or is it also divided into the coming years, 2027 and 2028?

Speaker #1: How should we divide that? Is the $20 million you want to put into your factory in Germany? Is that isolated to 2026, or is it also divided into the coming years—2027 and 2028?

Erik Boyter: Steen, maybe you just should answer first on this one, and then I will.

Speaker #2: Steen, maybe you should just answer first on this one, and then I'll also add on to it, yeah.

Steen Overgaard Sørensen: Yeah

Erik Boyter: also add on to it. Yeah.

Speaker #3: Yeah, yeah. So from an investment point of view, we have already started that process here in 2026, and depending on how fast the process goes with refurbishment of the factory, then yeah, we have a facility with a local bank, and we will use that on the go—it depends what is possible.

Steen Overgaard Sørensen: Yes. From a, you could say investment point of view, we have already started that process here in 2026, and depending on how fast the process goes with refurbishment of the factory, then yeah. We have a facility with a bank, local bank, and we will use that on the go. It depends what is possible. There is a lot of regulations in Germany that you have to apply to, and that defines a little bit the speed of that investment. But we have a plan that it will run, so 2026 for sure, but also full year 2027, and it might be run into the second half of 2028 before we are fully done with that. But exactly how the investments will occur is not set in stone. Again, that depends on, yeah, the speed of the project. We are not-

Speaker #3: There are a lot of regulations in Germany that you have to comply with, and that defines a little bit the speed of that investment. But we have a plan that it will run through 2026 for sure, but also the full year 2027, and it might run into the second half of 2028 before we are fully done with that.

Speaker #3: But exactly how the investments will occur is not set in stone. Again, that depends on, yeah, the speed of the project. We are not.

Speaker #1: Just one question: Is the 20 million extra on top of what you already invested, or is that the total investment? That's the total investment in the German facilities.

[Analyst]: The question, is the DKK 20 million extra on top of what you already invested, or is that the total-

Michael Friis: The question, is the DKK 20 million extra on top of what you already invested, or is that the total-

Steen Overgaard Sørensen: No, that is the total.

[Analyst]: that's the total investment

Michael Friis: that's the total investment

Steen Overgaard Sørensen: Yes. Yeah.

[Analyst]: in the German facility?

Michael Friis: in the German facility?

Speaker #3: Yeah.

Steen Overgaard Sørensen: Yeah.

Speaker #2: Maybe make a micro-close, just adding on. What are we doing here? We are updating our production facilities so they actually have the potential of having two shifts—because that's the beauty with the production we have.

Erik Boyter: Maybe Michael, just adding on

[Analyst]: Yeah

Michael Friis: Yeah

Erik Boyter: What are we doing here? We are updating our production facilities so they have facilities actually to, with the potential of having two shifts.

Erik Boyter: What are we doing here? We are updating our production facilities so they have facilities actually to, with the potential of having two shifts. To, because that's the beauty with the production we have. We can double and triple, with the two shift, three shifts if we really want to do that. It's not a question about the machines, but it's a question about labor in the factory. So that capacity can move for us. But it's certainly also on the energy efficiency on the building because we are using gas at the moment in the building for heating, and here we are going to go over to electricity for heating.

Erik Boyter: To, because that's the beauty with the production we have. We can double and triple, with the two shift, three shifts if we really want to do that. It's not a question about the machines, but it's a question about labor in the factory. So that capacity can move for us. But it's certainly also on the energy efficiency on the building because we are using gas at the moment in the building for heating, and here we are going to go over to electricity for heating. That will also have an impact on the cost levels going forward. But it's all about energy efficiency, and there is also grants into this that we'll get from the German government, because that's very different from Denmark. So they will pay part of the investment we actually doing in the building. I think Steen could elaborate what that is, actually.

Speaker #2: We can actually—we can double and triple with two shifts, three shifts, if we really want to do that. So, it's not a question about the machines, but it's a question about labor in the factory.

Speaker #2: So that capacity can move for us. But it's certainly also about the energy efficiency of the building, because we are using gas at the moment in the building for heating.

Speaker #2: And here we are going to go over to electricity for heating. That will also have an impact on the cost levels going forward.

Erik Boyter: That will also have an impact on the cost levels going forward. But it's all about energy efficiency, and there is also grants into this that we'll get from the German government, because that's very different from Denmark. So they will pay part of the investment we actually doing in the building. I think Steen could elaborate what that is, actually.

Speaker #2: But it's all about energy efficiency. And there are also grants for this that we'll get from the German government, because that's very different from Denmark.

Speaker #2: So, they will pay part of the investment we are actually making in the building. I think Steen could elaborate on what that actually is.

Speaker #3: Yeah, so especially on the installation side, but also for new heating systems and solutions, we will get—we'll simply get one-to-one, or 80% of that investment, as a subsidy from the German government.

Steen Overgaard Sørensen: Yeah. So for, especially on the installation side, but also for new heating systems and solutions, we will get simply one to one or 80% of that investment we'll get as a subsidiary from the German government. That will be paid out. Once you have an invoice, you get the money. So it's pretty straightforward. So the DKK 20 million is a net sum, and so actually the overall investment is a little bit higher, but the net cost for WindowMaster will be the DKK 20 million.

Speaker #3: And that will be paid out once you have an invoice—you get the money. So it's pretty straightforward. The 20 million is a net sum, so actually the overall investment is a little bit higher, but the net cost for WindowMaster will be the 20 million.

Speaker #1: And then that will not just be capacity; it will actually see some cost savings out of these investments it's asked of me going into the future.

[Analyst]: Then there will not just be capacity. We will actually see some cost savings out of this investment, it's up to me going into the future. Is that correctly understood on the energy side?

Michael Friis: Then there will not just be capacity. We will actually see some cost savings out of this investment, it's up to me going into the future. Is that correctly understood on the energy side?

Speaker #1: Is that correctly understood? On the energy side?

Speaker #3: Correct.

Steen Overgaard Sørensen: Correct.

Speaker #1: Perfect. Then there's a little bit about the adjustment you made to your guidance earlier this year. I'm trying to understand the building blocks and the mathematics behind actually a small adjustment to the top line and a larger adjustment to the EBIT. You have a higher operational gearing, but mathematically it looks like that was very, very high.

[Analyst]: Perfect. Then there's a little bit about the adjustment you made to your guidance earlier this year. Trying to understand the building blocks and the mathematics between actually a small adjustment to the top line and a larger adjustment to the EBITDA. You have a high operational gearing, but mathematically it looks like it. That was very, very high. Was there some extra cost or something that we should understand to do the building blocks on the guidance adjustments you made, I think, earlier this summer?

Michael Friis: Perfect. Then there's a little bit about the adjustment you made to your guidance earlier this year. Trying to understand the building blocks and the mathematics between actually a small adjustment to the top line and a larger adjustment to the EBITDA. You have a high operational gearing, but mathematically it looks like it. That was very, very high. Was there some extra cost or something that we should understand to do the building blocks on the guidance adjustments you made, I think, earlier this summer?

Speaker #1: Was there some extra cost or something that we should understand regarding the building blocks for the guidance adjustments you made? I think earlier this summer.

Speaker #3: Maybe I can comment. That's the—you would say—the operating model of WindowMaster. So turnover upwards and downwards hurts the bottom line pretty hard, because we do have a fixed cost base that is very fixed, so to speak, on this.

Steen Overgaard Sørensen: Maybe I can comment. That's the, you would say, the operating model of WindowMaster. Turnover upwards and downwards hurt the bottom line pretty hard, because we do have a fixed cost base that is very fixed, so to speak, unless we do adjustments as we have indicated here with the employees. That is the mechanism. Again, it's also important to say it also goes the other way. So more turnover goes fast. We have, as also seen in the financial report, you will see our margins are solid, and especially within the building business area, it's very strong. So more turnover there, but also less, brings good value very fast.

Speaker #3: We do adjustments, as we have indicated here, with employees, so that is the mechanism. But again, it's also important to say it also goes the other way.

Speaker #3: So more turnover goes fast. We have, as also seen in the financial report, our margins are solid, and especially within the building business area, it's very strong.

Speaker #3: So, more turnover there, but also less brings good value very fast.

Speaker #1: Perfect. And then a little bit about the market development. You touched on this a little bit, Steen, but the question here is, you also have visibility into August.

[Analyst]: Perfect. Then a little bit about the market development. You touched a little bit upon this theme, but the question here is you also have visibility into August. How does the market feel compared to Q1, compared to when you were suggesting your guidance? Are you continuing to see this pick up? I think you alluded a little bit to that's actually what you're seeing out there in the market activity.

Michael Friis: Perfect. Then a little bit about the market development. You touched a little bit upon this theme, but the question here is you also have visibility into August. How does the market feel compared to Q1, compared to when you were suggesting your guidance? Are you continuing to see this pick up? I think you alluded a little bit to that's actually what you're seeing out there in the market activity.

Speaker #1: How does the market feel compared to Q1, compared to when you were adjusting your guidance? Are you continuing to see this pick-up? I think you alluded a little bit to that—that’s actually what you’re seeing out there, the market activity.

Speaker #2: Yeah, maybe I should respond to that. We are seeing more activity again—much more than we saw in Q1, which was very disappointing. But we have seen, you could say, since the last part of the first—yeah, or mid-Q2, we have actually seen an acceleration of activity.

Erik Boyter: Yeah. Maybe I should respond to that. We are seeing more activity again, much more than we saw in. Q1 was very disappointing. We have seen, you can say, since the last part of the first or mid Q2, we have seen actually an acceleration of activity. That's also why we have a record order intake for the first 6 months. We have never had so much in order as this H1. So we see things picking up, but especially in the buildings business area, we are seeing that's where we are much more in control of the buildings, but our service department is actually strong and really developing. We are seeing refurbishment projects coming along on a regular basis. So that is, you can say, is really developing positive, and it was a big part of our accelerating core strategy.

Speaker #2: That's also why we have a record order intake for the first six months. We have never had so many orders as in this first half.

Speaker #2: So we see things picking up. But especially in the Buildings business area, we are seeing that's where we are much more in control of the buildings.

Speaker #2: We're also—our service department is actually strong and really developing. We are seeing refurbishment projects coming along on a regular basis. So that is—you can say it's really developing positively, and it was a big part of our Accelerating Core strategy.

Speaker #2: What we are seeing, and we have touched on this as well, is our product side, where we actually supply to distribution and to manufacturers. We have actually seen that over the last couple of years, mainly manufacturers have not been running very well because of high interest rates; a lot of them are much more focused on the residential area.

Erik Boyter: What we are seeing, and we have touched also on this, is on our product side where we actually supply to distribution and to manufacturers. We have actually seen that over the last couple of years, mainly manufacturers have been very, they have not been running very well because high interest rate. A lot of them are much more targeting residential area. There we have seen, because of high interest rate around, that the market has been down, and it has been a bit more slow. It is not only because we have lost market share, it is because the activity level in the building and especially residential have been down.

Speaker #2: And there we have seen, because of the high interest rate around, that the market has been down, and it has been a bit more slow.

Speaker #2: So it's not only because we have lost market share; it's because the activity level in the building, and especially residential, has been down.

Speaker #1: So let's look a little bit at the structural side. We always have this—the German economy uptick, you know, the big plants, that refurbishment—which I think is one of your strong points—and the green agenda sides. Compared to that, we are actually seeing interest rising right now.

[Analyst]: Let us look a little bit on the structural. We always have this, the German economy uptake, the big plans, the refurbishment, which I think is one of your strong sides, and the green agenda sides compared to that we are actually seeing interest rising right now. Is it your feeling that you can be a little bit comfortable with this development you are seeing here lately, even if the interest is rising because it is actually coming from areas like the German economy pick up the business activities and maybe the refurbishment areas?

Michael Friis: Let us look a little bit on the structural. We always have this, the German economy uptake, the big plans, the refurbishment, which I think is one of your strong sides, and the green agenda sides compared to that we are actually seeing interest rising right now. Is it your feeling that you can be a little bit comfortable with this development you are seeing here lately, even if the interest is rising because it is actually coming from areas like the German economy pick up the business activities and maybe the refurbishment areas?

Speaker #1: So, is it your feeling that you can be a little bit comfortable with this development you've seen here lately, even if the interest is rising, because it's actually coming from areas like the German economy picking up, the business activities, and maybe the refurbishment areas?

Speaker #2: You say our German market has always performed quite well—it's not like it's up and down in Germany for us. It's developed over time.

Erik Boyter: You say our German market has always performed quite well, developed with a, it is not like it is up and down in Germany for us. It is developed over time slowly, and it is a good base for our company. But of course, we can see that there is still not an effect of all the government debts that has been taken and going into the economy. Well, we can see it, of course, on our factory where we can get grants for our things. But I think it is also a question about it takes a bit of time to come into the market. Germany, in general, I see it is a steady diesel engine that runs, but it could run a bit more faster, and I think that is what we are all waiting for.

Speaker #2: Slowly, and it's kind of a good base for our company. Yeah. But of course, we can see that there's still not an effect from all the government debt that has been taken and going into the economy.

Speaker #2: Well, we can see it, of course, on our factory, where we can get grants for our things. Yeah. But I think it's also a question about—it takes a bit of time to come into the market.

Speaker #2: But Germany, in general, I feel, it's a steady diesel engine that runs, but it could run a bit faster. And I think that's what we're all waiting for.

Speaker #2: Yeah.

Speaker #1: And a little bit about the structural— you know, the interest rising, as you say, they hurt the residential side, but you're more on the refurbishment and the business activity side.

[Analyst]: A little bit about the structural. The interest rising, as you say, they hurt the residential side, but you are more on the refurbishment and the business activity side. Do you feel comfortable with what you are seeing here in Q2 and Q3 continuing into the rest of the year?

Michael Friis: A little bit about the structural. The interest rising, as you say, they hurt the residential side, but you are more on the refurbishment and the business activity side. Do you feel comfortable with what you are seeing here in Q2 and Q3 continuing into the rest of the year?

Speaker #1: So, do you feel comfortable with what you're kind of seeing here in Q2 and Q3 continuing into the rest of the year?

Erik Boyter: Yes. You can see it on our guidance and our experience, the H2 is always better than the H1, a lot better. Yeah. Because that is how it is. Yeah. Because projects get finished and that is the rhythm of the building industry. We talk about refurbishment here. I think we should touch a little bit on what it is actually we are, what is our core business in that. It is public building, it is offices, it is your schools, it is universities. That has been a very good area for us. This is also where we see these EU regulations are targeting higher refurbishment rates from 1% to 3% and so on. That will have an impact on WindowMaster over time.

Speaker #2: Yes, that's—you know, you can see it in our guidance, and our experience is that the second half is always better than the first half—a lot better.

Speaker #2: Yeah, because that's how it is. Yeah, because projects get finished and that's the—you can—the rhythm of the building industry. But we talk about refurbishment.

Speaker #2: Here we—I think we should touch a little bit on what it is actually we are—you know, what is our core business in that? And it's public buildings, it's offices.

Speaker #2: It's your schools, it's also universities. That has been a very good area for us. And this is also where we see these EU regulations are targeting higher refurbishment rates—from 1% to 2% to 3%, and so on.

Speaker #2: And that will have an impact on WindowMaster over time. But we still need to see a lot more from our own government—that it opens up for this—because there are also restrictions on how much the local authorities around Denmark are allowed to use of money.

Erik Boyter: We still need to see a lot more from our own government that it opens up for this because there are also restrictions on how much the local authorities around in Denmark are allowed to use of money. We need to see that being a little bit more loose. If that is loosened, you will see it is a big potential for WindowMaster.

Speaker #2: So we need to see that being a little bit more loose, and if that is loosened, you will see it's a big potential for WindowMaster.

Speaker #1: So military buildings might be the place for Denmark, if you better know.

[Analyst]: Military buildings might be the place for Denmark if you are there, but do not know. Joke.

Michael Friis: Military buildings might be the place for Denmark if you are there, but do not know. Joke.

Erik Boyter: Yeah. You never know.

Speaker #2: Yeah, you never know. And, but you never know. And if we do have military projects in our portfolio, we will often not be allowed to disclose them.

[Analyst]: No.

Michael Friis: No.

Erik Boyter: But you never know. If we do have military projects in our portfolio, we will often not be allowed to disclose them.

[Analyst]: Disclose it. I know that. Then there is this expectation of a more positive cash flow with the returning of the working capital, and including that you also might sell some of your business and cost saving. Could we expect maybe you returning to share buybacks, dividends, or would you prefer to bring down the debt level at the current levels?

Michael Friis: Disclose it. I know that. Then there is this expectation of a more positive cash flow with the returning of the working capital, and including that you also might sell some of your business and cost saving. Could we expect maybe you returning to share buybacks, dividends, or would you prefer to bring down the debt level at the current levels?

Speaker #1: Disclose it. I know that. I know that. Yeah, yeah. Then there's the expectation of a more positive cash flow at the return of the working capital, and including that, you also might sell some of your business and achieve cost savings.

Speaker #1: Could we expect, maybe, you returning to share buybacks or dividends, or would you prefer to bring down the debt at the current levels?

Speaker #2: There are two sides to that question. We, of course, would always like to reduce our debt levels, but I don't think our debt levels are extravagant currently.

Erik Boyter: There is two sides to that question. We, of course, would always like to reduce our debt levels, but I do not think our debt levels are extravagant currently. But they are in balance. That is one thing, but another thing, I think we also want to grow the business, so acquisitions is also part of our agenda, and they come on an opportunistic level, and we are always interested to do that. So, if we cannot find any acquisitions, then we might see that we will return and do dividend yet again, or buybacks is also a possibility. That is all part of the, you can say, the ammunition to uphold the share value. But we are investing also in product development and so on. So we use our cash to develop the business, and that is the biggest priority.

Speaker #2: But they are in balance, one thing. But another thing, I think we also—you know, we also want to grow the business. So acquisitions are also part of our agenda, and they come on an opportunistic level.

Speaker #2: And we are always interested to do that. So, yeah, if we cannot find any acquisitions, then we might see that we will return and do dividends yet again.

Speaker #2: Or buybacks are also a possibility. That's all part of the—you can say—the ammunition to uphold the share value. But we are also investing in product development and so on.

Speaker #2: So, we use our cash to develop the business. That's the biggest priority.

[Analyst]: Our biggest priority, yes. Then, no mention of the United States in the half-year report. Is ambition still the same? Can you tell us whether some of the order intake has been in this region?

Steen Overgaard Sørensen: Our biggest priority, yes.

Speaker #1: Biggest priority, yes. And then, no mention of the United States in the half-year report—is ambition still the same? And can you tell us whether some of the order intake has been in this region?

Michael Friis: Then, no mention of the United States in the half-year report. Is ambition still the same? Can you tell us whether some of the order intake has been in this region?

Erik Boyter: We have actually seen that North America and the US, we are quite optimistic about this. We have also mentioned in the past, this is a long-term project. You cannot see this, and I also know from history, from some of our biggest Danish companies into this market, that it took many years for them to get return on their investment and to develop and so on. I have always said it is a long-term, and we are there to stay, and we are developing. We wanted to develop more aggressively, but we also have to be much more clever in what we select in the market. I can say that the tariffs that are on the market have not affected our business in the US, and our margins in the US and North American market have actually grown even with the tariffs.

Speaker #2: We have actually seen that our stance on North America and the US, you know, we are quite optimistic about this, and we have also mentioned in the past that this is a long-term project.

Speaker #2: You cannot see this in—and I also know from history, from some of our biggest Danish companies entering this market, that it took many years for them to get a return on their investment and to develop, and so on.

Speaker #2: So, I have always said it's a long-term, and we're there to stay. We are developing; we wanted to develop more aggressively. But we also have to be much more clever in what we select in the market.

Speaker #2: But I can say that the tariffs that are on the market have not affected our business in the US. And our margins in the US and North American market have actually grown, even with the tariffs in place.

Erik Boyter: It is still one of our big areas of investment. It is also a high priority, but we do not mention it because there is nothing new to mention here.

Speaker #2: It's still—you know, it's still one of our big areas of investment, and it's also a higher priority. But we don't mention it, because there's nothing new to mention here.

Speaker #3: But maybe just a supporting comment is that we do see strong growth compared to last year. So it follows what we wanted to see, and I would say we are on track on that side.

Steen Overgaard Sørensen: Maybe just a supporting comment is that we do see a strong growth compared to last year, so it follows what we wanted to see, and I would say we are on track on that side. The end of the year for the full year report, we will of course comment on it, and there we do expect some positive developments at that level or at that stage.

Speaker #3: At the end of the year, for the full-year report, we will of course comment on it. And there, we do expect some positive developments at that level or at that stage.

Speaker #1: And then, final question. I don't think we have more time—no, one more question. I think I can push in with the deadline. How sure are you that you will reach the bidder target?

[Analyst]: A final question. I do not think we have more time, though. One more question I think I can push in with the deadline. How sure are you to reach the EBITDA target? It is very back-end loaded. Maybe more, how sure are you about the order book that needs to be delivered in that year, in the H2 of this and not being pushed into 2027? We do understand that if the revenue comes, we have seen historically no problems with the earnings in WindowMaster. So a little bit about the comfort about the order book and the fulfillment of the order book in the H2 of the year. Is that giving you comfort in your EBITDA guidance?

Michael Friis: A final question. I do not think we have more time, though. One more question I think I can push in with the deadline. How sure are you to reach the EBITDA target? It is very back-end loaded. Maybe more, how sure are you about the order book that needs to be delivered in that year, in the H2 of this and not being pushed into 2027? We do understand that if the revenue comes, we have seen historically no problems with the earnings in WindowMaster. So a little bit about the comfort about the order book and the fulfillment of the order book in the H2 of the year. Is that giving you comfort in your EBITDA guidance?

Speaker #1: There's a — it's very back-end loaded. Maybe more, how sure are you about the order book that needs to be delivered in that year, you know, in the second half of this, and not being pushed into '27?

Speaker #1: We do understand that if the revenue comes, we have seen historically no problems with the earnings in WindowMaster. So, a little bit about the comfort regarding the order book and the fulfillment of the order book in the second half of the year.

Speaker #1: Is that what you are—is that giving you comfort in your bidder guides?

Speaker #2: Will you answer that, Steen?

Erik Boyter: Will you answer that, Steen?

Speaker #3: Yeah. I think there are two areas that support the guidance. First of all, the pipeline—that's also where we put in when we do expect actually to close to an order.

Steen Overgaard Sørensen: Yeah. I think there are two areas that supports the guidance. First of all, the pipeline. That is also where we put in when do we expect actually to close to an order, and that is pretty front-loaded, if you look at when do we expect an order. So both the pipeline but also the orders, and there we believe it looks as it has done the other years, that we will fulfill a lot of that in the second half of this year. I think with the knowledge we have on the table, we are pretty confident in that guidance. You never know what happens, but with the knowledge we have, I think we have good feeling on that.

Speaker #3: And that is pretty front-loaded. If you look at when do we expect an order. So both the pipeline but also the orders and there we are we believe it looks as if has done the other years that we will fulfill a lot of that in the second half of this year.

Speaker #3: So, I think with the knowledge we have on the table, we are pretty confident in that guidance. You never know what happens, but with the knowledge we have, I think we have a good feeling on that.

Speaker #1: And then, of course, there was a last question for one long-term shareholder to others. What should drive the return? And I'm guessing I'm asking the biggest shareholder, and one of the biggest shareholders, here on this call.

[Analyst]: Then, of course, there was a last question. For one long-term shareholder, to others, what should drive the return? I am guessing I am asking the biggest shareholder and one of the biggest shareholders here on this call. So a little bit about the shareholder return, and what should drive this for the long-term investors.

Michael Friis: Then, of course, there was a last question. For one long-term shareholder, to others, what should drive the return? I am guessing I am asking the biggest shareholder and one of the biggest shareholders here on this call. So a little bit about the shareholder return, and what should drive this for the long-term investors.

Speaker #1: So, a little bit about the shareholder return, and what should drive this for the long-term investors?

Speaker #2: Well, the market decides the share price. Yeah. And that I cannot influence. Yeah. But I can influence it by delivering good results for WindowMaster.

Erik Boyter: Well, the market decides the share price, yeah? That I cannot influence. But I can influence it with doing good results for WindowMaster. But I think also, the platform of the First North might also keep our share price down, as such, because there is not enough, you can say, not liquidity enough on the market. Yeah, because if somebody came to me and wanted to buy the company, then the valuation would be a lot higher than what you see on the market today. That is, of course, an issue that we are faced with. But I will say that as a shareholder, I am here for the long term, but I certainly also want a higher return than what I have seen over the last couple of years, and that is what we are working towards.

Speaker #2: But I think also the platform of the First North might also keep our share price down, as such, because there is not enough, you can say, not liquidity enough on the market.

Speaker #2: Yeah, because if somebody came to me and wanted to buy the company, then the valuation would be a lot higher than what you see on the market today.

Speaker #2: Yeah, and that is, of course, an issue that we are faced with. But I will say that as a shareholder, I'm here for the long term, but I certainly also want a higher return than what I have seen over the last couple of years.

Speaker #2: And that is what we are working towards.

Speaker #1: I think that would be a very good place to end this call. So, I think we can do it much better. No? Perfect. Thank you to you both for taking us through your results and answering questions.

[Analyst]: I think that would be a very good place to end this call. Don't think we can do it much better. No. Perfect. Thank you to you both for taking us through your results and answering questions, and thank you for the audience listening in. May everybody have a nice weekend.

Michael Friis: I think that would be a very good place to end this call. Don't think we can do it much better. No. Perfect. Thank you to you both for taking us through your results and answering questions, and thank you for the audience listening in. May everybody have a nice weekend.

Speaker #1: And thank you to the audience listening in. Everybody, have a nice weekend.

Erik Boyter: Thank you very much. Thank you.

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Q2 2026 WindowMaster International AS Earnings Call

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