Lindab International (LIAB) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 sales of SEK 3,520m, up 5% year-over-year, with the highest-ever operating profit and a 9.6% margin, driven by acquisitions and efficiency gains.

• Ventilation Systems accounted for 75% of sales, delivering its highest sales and a 10.4% margin; Profile Systems reversed losses, reaching an 8.7% margin.

• Profitability improved, with EBIT rising to SEK 338m from SEK 302m in Q2 2023.

• Acquisitions, including Venti A/S and TGA KlimaPartner, contributed significantly to growth.

• Strong cash flow from operating activities at SEK 342m, up 6% year-over-year.

Financial highlights

• Group sales increased by 5% year-over-year to SEK 3,520m, with operating profit at SEK 338m and a 9.6% margin.

• Organic growth was -3%, structural growth 8%; Ventilation Systems sales SEK 2,654m (up 7%), Profile Systems SEK 866m (down 2%).

• Adjusted EBIT: Ventilation Systems SEK 276m (10.4% margin), Profile Systems SEK 75m (8.7% margin).

• Net debt at SEK 4,517m, net debt/EBITDA 2.1x, financial net debt/EBITDA 1.5x.

• Cash flow from operating activities up 6% to SEK 342m.

Outlook and guidance

• Gradual volume increases expected in H2 2024 from low levels, with multi-year growth phase anticipated from 2025, supported by EU energy directives.

• Profile Systems likely to see organic growth in H2 2024; Ventilation Systems expected to return to organic growth in 2025.

• Long-term targets: sales of SEK 20bn and operating margin of at least 10% by 2027.

• Acquisitions expected to drive two-thirds of growth through 2027.