Lindab International (LIAB) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw record sales for Ventilation Systems, primarily driven by acquisitions, despite negative organic growth and challenging market conditions in key countries.

• Operating profit remained resilient, with increased turnover and improved gross margin year-over-year, supported by ongoing profitability and cost reduction measures.

• Structural and cost reduction programs are progressing as planned, with 75% of targeted annualized cost savings realized in Q1 and significant FTE reductions.

• Divestment of loss-making profile businesses in Eastern Europe is underway, with several units closed or sold and remaining divestments expected in Q2.

• Acquisition strategy continues, highlighted by the pending purchase of Polish ventilation specialist Ventia and several other acquisitions.

Financial highlights

• Group sales reached SEK 3,214m in Q1 2025, up from SEK 3,147m in Q1 2024; organic growth -3%, acquired growth +5%.

• Group EBIT for Q1 was SEK 228 million, with an operating margin of 7.1%, matching the previous year.

• Profit for the period increased 24% to SEK 145m, and EPS rose to SEK 1.89 from SEK 1.53 year-over-year.

• Cash flow from operating activities was SEK 160 million, down from SEK 208 million year-over-year.

• Net debt at SEK 4,366m; net debt/EBITDA: 2.6x; financial net debt/EBITDA: 2.1x.

Outlook and guidance

• Market activity is expected to pick up gradually in Q2, with recovery in ventilation lagging profile systems by 6–9 months.

• Profitability target of 10% operating margin for 2025 remains, but achieving it depends on market improvement in the second half of the year.

• If market conditions worsen, further profitability measures are ready to be implemented.

• Demand for Ventilation Systems expected to stay weak short-term; Profile Systems may see some recovery in Scandinavia.