IP.MI

Interpump manufactures high-pressure water pumps, hydraulic components, and cleaning systems for industrial and automotive applications across Europe and North America. The company dominates specialized niches like car wash equipment and hydraulic systems for mobile machinery, where switching costs and engineering relationships create sticky customer bases. Management has consistently grown through targeted acquisitions of smaller competitors, adding complementary technologies while maintaining disciplined capital allocation. Revenue growth has decelerated to just 1% as European industrial demand softens, but the 35.3% gross margin reflects genuine pricing power in their specialized markets. Trading at what appears to be a reasonable multiple given the 10.2% ROE, Interpump offers exposure to eventual European industrial recovery while collecting steady cash flows from mission-critical equipment.