Lagercrantz Group (LAGR) Q2 24/25 earnings summary

Executive summary

• Net revenue for Q2 2024/25 increased by 16% to MSEK 2,172, mainly driven by acquisitions, with organic growth at 1% and a negative currency effect of 2%.

• EBITA rose 16% to MSEK 387, maintaining a margin of 17.8%; profit after tax grew 10% to MSEK 224.

• H1 2024/25 net revenue up 13% to MSEK 4,425, with EBITA up 12% to MSEK 772 and a margin of 17.4%.

• Seven acquisitions closed in the last 12 months, adding MSEK 1,145 in annual revenue, with two completed in Q2 and a pending deal for Mastsystem.

• All divisions except TecSec contributed to earnings improvement, with strong performance from recently acquired companies.

Financial highlights

• Q2 profit after financial items rose 14% to MSEK 293; profit after taxes up 10% to MSEK 224.

• Cash flow from operations was MSEK 261 in Q2 and MSEK 496 for H1, both lower than prior year.

• Earnings per share (diluted) increased to SEK 4.41 for H1, up from SEK 4.25.

• Net debt at MSEK 3,278; net debt/equity ratio at 1.0.

• Return on working capital (P/WC) at 75%; return on capital employed at 20%.

Outlook and guidance

• Management remains cautiously optimistic, expecting stable market conditions and a positive project pipeline, though construction recovery may be delayed until 2025.

• The group targets annual profit growth above 15%, with at least one-third organic and the rest from 8–12 acquisitions per year.

• Return on equity goal is above 25%; tax rate expected to normalize around 23% for the full year.

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