Lammhults Design Group (LAMM) Q1 2025 earnings summary

Executive summary

• Adjusted operating profit improved by 10.5 MSEK to 0.9 MSEK, with revenue up 0.5% to 210.1 MSEK, despite a seasonally weak and subdued market.

• Order intake increased by 11.9% year-over-year, and order backlog rose 27% versus Q1 2024, reflecting strong momentum.

• Ongoing restructuring program, including reorganization of Office Interiors sales and cross-company function coordination, is expected to yield full benefits by late 2025.

• Cost control and efficiency measures supported profitability, with minimal direct US exposure.

• Targeting EBIT margin of 8–10% by 2026.

Financial highlights

• Revenue grew 0.5% to 210.1 MSEK (209.0 MSEK in Q1 2024); adjusted EBIT improved to 0.9 MSEK from -9.6 MSEK; adjusted EBIT margin at 0.4% (from -4.6%).

• Adjusted gross margin increased by 2.2 percentage points to 35.9%.

• Net income was 0.0 MSEK (from -9.9 MSEK); EPS: 0.00 SEK (from -1.17 SEK).

• Operating expenses reduced to 74.7 MSEK (81.1 MSEK in Q1 2024).

• Free cash flow including leasing was 1.4 MSEK, up from -9.0 MSEK; available liquidity was 67.0 MSEK.

Outlook and guidance

• The restructuring program is expected to deliver 30–40 MSEK in annual EBIT improvement after full implementation by Q4 2025.

• Continued focus on cost control, efficiency, and digital initiatives, with a target EBIT margin of 8–10% by 2026.

• Expecting to strengthen market position as conditions improve.