Lagercrantz Group (LAGR) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 increased 10% to SEK 2,253 million, mainly driven by acquisitions, while organic growth was -3% due to tough comparables.

• EBITA rose 8% to MSEK 386, with a margin of 17.1% (down from 17.5% last year), and profit after tax increased 6% to MSEK 222.

• All divisions contributed to earnings growth, with strong acquisition-led performance and eight acquisitions in the last 12 months adding MSEK 1,175 in annual sales.

• Board proposed a dividend increase to SEK 1.90 per share, with earnings per share at SEK 4.32.

• Market conditions are stabilizing, with cautious optimism for the fall as interest and inflation rates decline.

Financial highlights

• Acquisitions contributed 12% to revenue growth, organic growth was -3%, and currency effects added 1%.

• Cash flow from operations was MSEK 235, down from MSEK 286 year-over-year.

• Return on equity reached 26%, equity ratio at 36%, and profit over working capital at 74% (up from 72%).

• Net debt was MSEK 2,860, with a net debt/equity ratio of 0.8x.

• Earnings per share increased to SEK 4.32, up 13% year-over-year.

Outlook and guidance

• Management is cautiously optimistic for coming quarters, expecting improved project inflow as macro conditions improve.

• Order intake for comparable units matched invoiced sales, slightly better than the previous quarter, indicating stabilization.

• Ambition to grow profits by 15% per year and reach SEK 2 billion in EBT within five years.

• Acquisition pipeline remains strong, with several attractive targets under evaluation.

• Strategic focus remains on acquisitions and building positions in sustainable, high-growth segments.