Lindab International (LIAB) Q2 2025 earnings summary

Executive summary

• Ventilation Systems achieved a 9.9% operating margin, supported by improved gross margin and cost reductions, despite challenging market conditions and negative currency effects.

• Profile Systems faced lower sales and profitability due to weak project business, low volumes, and subdued market activity.

• Net sales for Q2 2025 decreased by 8% year-over-year to SEK 3,253m, with organic sales down 6% and currency effects at -4%.

• Structural measures, including closure of 10 sites and reduction of 180 full-time positions, were fully implemented to enhance efficiency.

• The divestment of the Slovak subsidiary and completion of acquisitions in the UK and Poland were key events.

Financial highlights

• Group operating profit for Q2 was SEK 281m, down from SEK 338m, with an operating margin of 8.6%.

• Q2 net sales: SEK 3,253m (down 8% year-over-year); organic growth -6%; currency effect -4%.

• Cash flow from operating activities in Q2 reached SEK 331m.

• Q2 profit for the period was SEK 174m, and EPS before/after dilution was SEK 2.26.

• H1 net sales: SEK 6,467m (down 3%); H1 operating profit: SEK 509m (down 10%).

Outlook and guidance

• Market activity remains subdued, especially in Germany and Sweden, with construction activity expected to stay low in coming quarters.

• Sales are expected to stabilize in H2 2025, with a more visible recovery anticipated in 2026.

• Efficiency measures and synergies from acquisitions are expected to strengthen profitability.

• Long-term demand for energy-efficient ventilation remains robust.

• Positive signs are emerging in several markets, and profitability is expected to improve as volumes recover.