Lindab International (LIAB) Pre-Close Call summary

Market outlook

• European ventilation markets declined 5% in 2023 and another 5% in the first nine months of 2024; continued weakness was expected in H1 2025.

• Stabilization or gradual recovery from low levels was anticipated in H2 2025.

• Medium- and long-term demand outlook remained strong, supported by energy efficiency, healthy indoor-climate needs and the Energy Performance of Buildings Directive.

• Early signs of recovery for Profile Systems in the Nordics appeared in autumn 2024; Eastern Europe remained challenging.

Financial performance and margins

• Q3 2024 adjusted EBIT was SEK 304m (9.1%) overall, SEK 240m (9.5%) for Ventilation Systems and SEK 71m (8.8%) for Profile Systems.

• R12M adjusted EBIT was SEK 1,128m (8.5%); Profile Systems' R12M margin was 6.3%.

• Q4 margins typically weaken with winter and holiday seasonality, particularly in Profile Systems; Q3 is typically strongest.

Restructuring and cost reduction

• Ventilation Systems announced 10 site closures and cuts to 180 full-time positions, reducing fixed costs by SEK 120m annually.

• 75% of savings were expected in Q1 2025, with the full effect from Q3 2025.

• Profile Systems is exiting Eastern Europe, affecting six countries, SEK 500m in sales and 250 employees; Q4 OTC was SEK 400m, including a SEK 250m goodwill write-off.

• Eastern European focus shifts to successful ventilation businesses in Poland, Czech Republic and Hungary; Profile Systems is concentrating on core Scandinavian markets.