Lindab International (LIAB) Pre-Close Call summary

Executive summary

• European ventilation market volumes declined by 5% in 2023 and the first half of 2024, with a similar trend expected for the full year 2024, impacting sales.

• Profile Systems sales dropped 20% in 2023 and saw an 11% organic decline in H1 2024, but early signs of recovery are visible in Scandinavia, especially in Q2.

• Several acquisitions in 2023 and 2024 will contribute to structural growth, with the latest, ATIB, to be included in Q4.

Trading performance and revenue trends

• Negative volume trends persist in both ventilation and profile systems, with stabilization expected for Profile Systems in H2 2024 and gradual improvement for Ventilation Systems in 2025.

• Acquisitions such as Venti, TJ Klimapartner, AirMaster, Vicon, and Hasvent will support revenue in Q3, with ATIB joining in Q4.

• Early signs of increased consumer activity in renovation and DIY segments, especially in Sweden.

Profitability and margins

• Gross margins have improved in recent quarters, with expectations for stable or slightly improving margins in H2 2024, aided by lower steel prices.

• Profile Systems remains volatile in earnings, with extraordinary pricing and structural measures underway to improve profitability.

• Ventilation Systems shows stable EBIT margins despite market downturns and acquisitions.

• Profile Systems is underperforming relative to the group’s 10% EBIT margin target, requiring urgent improvement.

• Adjusted EBIT margin trends for 2022-2024 show ongoing focus on profitability across segments.