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 in Q2.

• Acquisitions in 2023 and 2024, including Venti, TJ Klimapartner, AirMaster, Vicon, Hasvent, and the pending ATIB deal, will contribute to structural growth, totaling over SEK 1.2 billion in annualized sales.

Financial highlights

• Gross margins have increased in some quarters, with expectations for stable or slightly improving margins in H2 2024.

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

• Strong cash flow from operating activities has been delivered from 2022–2024, supporting further acquisitions and aided by reduced working capital and falling steel prices.

• The accelerated investment program will conclude in 2024, reducing annual CapEx from SEK 350–400 million to SEK 200–250 million.

Outlook and guidance

• Negative volume trends in ventilation are expected to persist through 2024, with gradual positive effects for Ventilation Systems anticipated in 2025.

• Profile Systems may see sales stabilization in H2 2024 and potential organic growth in 2025.

• No significant price increases are expected in the next six months; price stability is the goal.

• Market recovery signs noted in Scandinavia in Q2, but overall European market remains subdued.