Lindab International (LIAB) Pre-Close Call summary

Market conditions and outlook

• European ventilation market declined by 5% in 2023 and another 5% through Q3 2024, with no recovery expected before H2 2025.

• Medium to long-term outlook for ventilation systems remains strong, driven by energy efficiency, regulation, and healthy indoor climate needs.

• Significant geographical differences: Sweden, Germany, and UK weak; Denmark, Norway, Ireland, Switzerland, Italy, and France strong.

• Profile Systems faced challenges in Eastern Europe but showed early signs of recovery in the Nordics in autumn 2024.

• Legislation like the Energy Performance of Buildings Directive (EPBD) supports future demand.

Profitability and cost actions

• Ventilation Systems Q3 2024 adjusted EBIT margin at 9.5%; Profile Systems at 8.8%, with R12M margin at 6.3%.

• Actions in Q4 include closing 10 sites and cutting 180 positions, reducing fixed costs by 120 million SEK annually.

• Exiting Profile Systems in Eastern Europe, affecting 6 countries, 500 MSEK in sales, and 250 employees; 400 MSEK OTC in Q4, including 250 MSEK goodwill write-off.

• Cost savings program to realize 75% of savings from January, with full effect by Q3 2025.

• Seasonality impacts EBIT margins, with Q3 typically strongest and Q4 weaker, especially for Profile Systems.

Cash flow, investments, and acquisitions

• Strong cash flow from operations exceeded 3 billion SEK over two years, maintained through 2022-2024.

• Accelerated investment program ended in 2024, freeing up more cash flow.

• Seven acquisitions completed in 2024 totaling over 1.3 billion SEK in annual sales; 28 since 2020, adding over 4 billion SEK in annual sales.

• Recent acquisitions include Acomat, ATIB, Venti, TGA KlimaPartner, Airmaster, and Vicon.

• Synergies from acquisitions expected to accelerate in 2025.