Lammhults Design Group (LAMM) Q2 2025 earnings summary

Executive summary

• Adjusted operating profit for Q2 2025 rose by 13.8 MSEK to 0.2 MSEK year-over-year, driven by efficiency measures, cost control, and margin improvements in both business areas.

• Adjusted gross margin increased by 3.3 percentage points to 37.2%, reflecting price increases, higher capacity utilization, and cost savings.

• Revenue for Q2 2025 was 212.5 MSEK, nearly unchanged year-over-year; order intake and sales remained stable, with a 23% higher order backlog.

• Ongoing restructuring and a new go-to-market strategy are driving operational improvements and margin gains.

• Library Interiors delivered stable sales and higher order intake; Office Interiors saw strong growth in Norway but a softer Swedish market.

Financial highlights

• Group sales for Q2 2025 were 212.5 MSEK, up 0.2% year-over-year; H1 revenue reached 422.6 MSEK, up 0.4% from H1 2024.

• Adjusted operating margin improved to 0.1% in Q2 (from -6.4%) and 0.3% in H1 (from -5.5%).

• Cash flow from operations was 1.3 MSEK in Q2 and 12.5 MSEK in H1, both improved year-over-year.

• Free cash flow including leasing was -7.2 MSEK in Q2 and -6.0 MSEK in H1, both improved year-over-year.

• Equity ratio at period-end was 52.5% (down from 56.8%); net debt was 153.7 MSEK.

Outlook and guidance

• Order backlog at period end was 233.7 MSEK, up 44 MSEK year-over-year, supporting positive prospects for H2 2025.

• Management maintains guidance for a positive net effect of 30–40 MSEK annually from restructuring, with full impact expected by Q4 2025.

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

• Main effects of the 2024 action program expected by end of 2025.