Lagercrantz Group (LAGR) Q1 26/27 earnings summary

Executive summary

• Net revenues increased by 18% year-over-year to MSEK 2,907, with 12% from acquisitions and 6% organic growth.

• EBITA rose 15% to MSEK 498, with an EBITA margin of 17.1%.

• Profit after tax grew 20% to MSEK 315, and EPS increased 20% to SEK 1.53 for the quarter; rolling 12-month EPS reached SEK 6.07.

• Six acquisitions were completed in the quarter, the highest in any quarter to date, adding approximately MSEK 400 in sales.

• Board proposes a dividend increase to SEK 2.50 per share.

Financial highlights

• EBITA margin for the group at 17.1% for Q1, slightly down from 17.5% last year.

• Cash flow from operations was MSEK 279, in line with the prior year.

• Return on equity reached 29%, exceeding the 25% target.

• Equity ratio improved to 35%; net debt increased to MSEK 4,532, mainly due to acquisitions.

• Proprietary products accounted for 80% of net revenue, progressing toward the 85% target.

Outlook and guidance

• Management expresses increased confidence for the future, citing improved organic growth and strong order intake.

• Cautious optimism remains due to geopolitical uncertainties and cost inflation, but current trends are positive.

• No slowdown expected in M&A activity; pipeline remains robust.

• Long-term targets include achieving a 20% EBITA margin within 2-3 years and maintaining return on working capital above 60%.

• Order intake for comparable units was over 10% higher than invoiced sales, indicating a healthy pipeline.