Lindab International (LIAB) Pre-Close Call summary

Executive summary

• European ventilation volumes declined 5% in 2023 and H1 2024; Profile Systems sales fell 20% in 2023 and organic sales declined 11% in H1 2024, with recovery signs in Scandinavia.

• Strong operating cash flow and acquisitions support continued growth initiatives amid subdued markets.

• A digital pre-close investor meeting was scheduled for 19 September 2024 at 14:00 ahead of the Q3 interim report.

Trading performance and market environment

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

• Early signs of recovery and increased renovation and DIY activity emerged in Scandinavia, especially Sweden.

• Germany remains weak, particularly residential construction; public and industrial segments are more resilient. German renovation subsidy support has ended, affecting AirMaster sales.

• Acquisitions including Venti, TJ Klimapartner, AirMaster, Vicon and Hasvent support Q3 revenue; ATIB is to be included in Q4. Acquisitions in 2023–24 total over SEK 1.2 billion in annualized sales.

Profitability and margins

• Gross margins have improved in recent quarters and are expected to remain stable or improve slightly in H2 2024, aided by lower steel prices.

• Ventilation Systems has maintained stable EBIT margins despite market declines and acquisitions.

• Profile Systems remains volatile and below the 10% EBIT margin target; pricing and structural measures aim to improve profitability.

• Profile Systems earnings were affected by seasonal factors, including Easter, with recovery anticipated.