Lagercrantz Group (LAGR) Q1 24/25 earnings summary

Executive summary

• Net revenues for Q1 rose 10% year-over-year to SEK 2,253 million, mainly driven by acquisitions, while organic growth was -3%.

• EBITA increased by 8% to SEK 386 million, with a margin of 17.1%, slightly below last year's 17.5%.

• Profit after financial items reached a record SEK 302 million, up 9% year-over-year.

• Two UK acquisitions, Principal Doorsets and CP Cases, completed post-quarter, added SEK 280 million in annual net sales.

• Board proposes a dividend increase to SEK 1.90 per share.

Financial highlights

• Net revenues: SEK 2,253 million (+10% YoY); 12% from acquisitions, -3% organic, 1% currency effect.

• EBITA: SEK 386 million (+8% YoY); margin 17.1%.

• Cash flow from operations: SEK 235 million (down from SEK 286 million YoY).

• Return on equity: 26%; equity ratio: 36%; profit/working capital: 74%.

• Earnings per share increased to SEK 4.32.

Outlook and guidance

• Market conditions are stabilizing, with signs of bottoming out in key segments and strong demand in Electrify and Niche Products.

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

• Management remains cautiously optimistic for the fall, expecting improved demand as inflation and interest rates decline.

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

• Goal to double profit to SEK 2 billion within five years remains on track.