Lagercrantz Group (LAGR) Q3 2025 earnings summary

Executive summary

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

• EBITA rose 21% to MSEK 428, with a margin improvement to 17.4%.

• Profit after tax increased by 19% to MSEK 267 in Q3, and cash flow from operations improved by 32% to MSEK 484.

• Nine-month net revenues reached MSEK 6,887, up 15% year-over-year, with EBITA up 15% to MSEK 1,200.

• The group continues to pursue a dual growth strategy, targeting one-third organic and two-thirds acquisitive growth, with several new acquisitions completed or pending.

Financial highlights

• Q3 net revenues: MSEK 2,462 (+20% YoY); EBITA: MSEK 428 (+21% YoY); EBITA margin: 17.4%.

• Nine-month net revenues: MSEK 6,887 (+15% YoY); EBITA: MSEK 1,200 (+15% YoY); EBITA margin: 17.4%.

• Earnings per share (diluted) increased to SEK 4.61.

• Return on equity remained strong at 28%; equity ratio at 35%; profit over working capital improved to 82%.

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

Outlook and guidance

• Management expects to achieve the full-year profit growth target of 15% and remains cautiously optimistic, with stable market conditions and a strong acquisition pipeline.

• 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.

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