Lindab International (LIAB) Q3 2024 earnings summary

Executive summary

• Q3 sales reached SEK 3,348m, a record high, up 3% year-over-year, driven by acquisitions despite a 4% organic decline and weak market demand.

• Adjusted operating margin was 9.1%, below the 10% target and prior year, prompting further cost-saving measures in Q4.

• Profit for the period dropped 34% year-over-year to SEK 158m, with EPS at SEK 2.05 (3.10).

• Acquisitions, including ATIB (France) and Venti (Denmark), strengthened the Ventilation Systems segment.

• Market remains subdued, with recovery expected from H2 2025 and a multi-year growth phase thereafter.

Financial highlights

• Ventilation Systems sales grew 6% to SEK 2,538m, with acquisitions contributing 11% to group sales; organic sales declined 3%.

• Profile Systems sales fell 6% to SEK 810m, with stabilization in the Nordics but continued weakness in Eastern Europe.

• Adjusted operating profit for Q3 was SEK 304m (-13%); adjusted operating margin for Ventilation Systems was 9.5%, and Profile Systems 8.8%.

• One-off and restructuring costs of SEK 30m related to Leapcraft write-down impacted Q3 results.

• Cash flow from operating activities was SEK 259m, down from SEK 444m in Q3 2023.

Outlook and guidance

• Further cost reductions and price increases are planned to restore profitability and reach a 10% operating margin in 2025.

• Market demand is expected to remain weak through H1 2025, with gradual recovery anticipated from H2 2025.

• Long-term demand for energy-efficient ventilation remains strong, supported by legislation and EU directives.

• Acquisitions are expected to account for two-thirds of growth through 2027.