Lagercrantz Group (LAGR) Q3 2025 earnings summary

Executive summary

• Net revenues increased by 20% in Q3 to MSEK 2,462, with 16% from acquisitions and 3% organic growth, marking a return to positive organic growth after previous negative quarters.

• EBITDA/EBITA rose 21% year-over-year to MSEK 428, with a margin improvement from 17.2% to 17.4%.

• Profit after tax increased by 19% in Q3 to MSEK 267, and cash flow from operating activities was MSEK 484.

• The group continues to pursue a dual growth strategy, targeting one-third organic and two-thirds acquisitive growth.

• Acquisitions and improved organic growth were key drivers, with several new businesses added and more acquisitions pending.

Financial highlights

• Nine-month net revenue increased by 15% to MSEK 6,887; EBITA up 15% to MSEK 1,200; EBITA margin stable at 17.4%.

• Earnings per share (diluted) for the latest 12 months reached SEK 4.61, up from SEK 4.25.

• Return on equity for the latest 12 months was 28%; equity ratio at 35%; profit over working capital improved to 82%.

• Cash flow from operating activities for nine months was MSEK 980.

• Interest coverage ratio: 8x; net debt/equity ratio: 0.9.

Outlook and guidance

• Management expects to achieve the full-year profit growth target of 15% and remains cautiously optimistic, expecting stable market conditions for most businesses.

• Construction sector remains sluggish, with recovery expected later in 2025 as interest rates decline.

• Book-to-bill ratio slightly above one, indicating a positive trend in order intake.

• Focus remains on increasing the share of proprietary products, targeting 85% in the coming years.

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