Analyst Comment

HCA Market Close 12/01 2023 – WindowMaster gained on guidance beat

By Philip CoombesEquity Research Analyst

HCA Market Close 12/01 2023 – WindowMaster gained as the company announced it has exceeded its revenue and EBITDA guidance for 2022.

Market Movements:

Denmark: OMX:C25 (+0.34%) ; Sweden: OMX:S30 (+0.79%) ; Norway: OBX:OSL (+1.18%) ; S&P 500 (+0.23%) ; Nasdaq (-0.06%); Stoxx 600 (+0.63%)

Market Drivers:

Markets gained, and the dollar fell following today’s much-awaited US CPI data.

Markets had been anticipating today’s CPI numbers for much of this week, with most expecting the data to confirm that inflation is falling. Today’s numbers landed in line with expectations, with CPI falling -0.1%; M/M; against Exp. -0.1%. On a year-over-year basis, these numbers were CPI 6.5% Y/Y; Exp. 6.5%. Core inflation also matched estimates with CPI Core 0.3%; M/M; Exp. 0.3%, and CPI Core 5.7% Y/Y; Exp. 5.7%.

In response to the data, markets assessed the pressure on the Fed to raise rates is reduced, resulting in US bonds gaining (yields down), resulting in a weakening dollar and pushing stocks higher. Markets are now pricing in slightly less than 50 basis points of tightening at the Fed’s next two meetings. Tomorrow markets will assess GDP data from the UK and Germany and learn more about the respective economies’ health and the likelihood of a soft landing.

Snacks from the HCA Platform:

Today, WindowMaster announced that the company has exceeded its revenue and EBITDA guidance for 2022. In 2022, WindowMaster now expects revenue to be in the range of DKK 242-243m, which is 3.4% above the previous revenue guidance of DKK 233-236m (midrange). The midrange in the new guidance range corresponds to a growth rate of 14.7% YoY, which is at the top end of WindowMaster’s mid-term (2025) financial growth target (CAGR of 10-15%). More importantly, EBITDA is now expected to be between DKK 16.5-17.5m, which is 13.3% above the previous guidance of DKK 14-16m (midrange). The better-than-expected financials are driven by the faster implementation of the new strategy ‘Accelerate Core’, and WindowMaster highlights its improvements in the Nordics, Switzerland, and North America. The share gained 12.42% in today's trading.

You can follow the conversation at the Inderes.dk forum: https://forum.inderes.dk/

Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement./ Philip Coombes 18:15

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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.