Lindab International (LIAB) Q2 2026 earnings summary

Executive summary

• Net sales increased by 2% in Q2 2026 to SEK 3,306m, marking a return to organic growth after previous stagnation, with Profile Systems driving growth and Ventilation Systems remaining flat.

• Margins came under pressure due to higher transportation and input material costs, mainly from geopolitical disruptions and weak demand in key Western European markets.

• Profile Systems achieved 5% organic growth and operational stability post-factory relocation, with focus shifted to Scandinavia after Romanian divestment.

• Market conditions remain challenging in several countries, though Sweden and the Nordics are showing signs of recovery.

• Acquisition of Irish distributor Connaught Ventilation Supplies completed in July, strengthening the Irish market position.

Financial highlights

• Q2 net sales: SEK 3,306m (up 2% year-over-year); adjusted operating profit: SEK 218m (down 22%); margin declined to 6.6% from 8.6%.

• Cash flow from operating activities reached SEK 275m in Q2, with a cash conversion rate of 97%.

• Net debt stood at SEK 4,497m as of June 30, with net debt/EBITDA at 2.7 (unchanged year-over-year).

• Dividend for 2025 set at SEK 5.60 per share, paid in two installments in 2026.

• Q2 EPS: SEK 1.77 (down 22% year-over-year).

Outlook and guidance

• European construction market outlook revised down for 2026 and 2027 due to geopolitical uncertainty and the Middle East conflict.

• European ventilation market expected to remain flat for the rest of 2026, with cautious growth in 2027; Profile Systems market stabilizing in 2026 with growth prospects in 2027.

• Ambition to fully offset higher costs in coming months, but gross margin pressure may persist into Q3 and possibly Q4.

• Focus remains on financial stability, cash flow, and long-term value creation through operational streamlining and acquisitions.