Linjemontage (LMGAB) Q2 26/27 earnings summary

Executive summary

• Q2 net sales fell 16.5% YoY to MSEK 653.8; adjusted EBITA margin improved to 8.8% from 8.2%. Order backlog reached a record MSEK 4,331.5, up 4.5% YoY.

• H1 adjusted EBITA rose to MSEK 146.4 from MSEK 140.6; order inflow increased to MSEK 2,197.9 from MSEK 1,544.9.

• Strong backlog, improved underlying profitability and project execution on plan support H2 visibility and confidence in communicated growth targets.

Financial highlights

• Q2 net sales were MSEK 653.8 (783.1); H1 net sales were MSEK 1,477.7 (1,657.4). Lower sales reflected opening backlog, project mix, scheduling and revenue recognition.

• Q2 adjusted EBITA was MSEK 57.7 (64.5), with an 8.8% margin (8.2%); H1 adjusted EBITA was MSEK 146.4 (140.6), with a 9.9% margin (8.5%).

• Q2 operating profit was MSEK 38.7 (49.1); H1 operating profit was MSEK 108.7 (116.0). Q2 net profit was MSEK 29.2 (37.5), or SEK 0.57 EPS (0.73); H1 net profit was MSEK 84.5 (92.4), or SEK 1.65 EPS (1.81).

• Q2 operating cash flow was MSEK 50.1 (-69.0); H1 was MSEK 75.4 (-90.2).

• Adjusted figures excluded Q2 items affecting comparability of MSEK 19.0 and H1 items of MSEK 37.7, mainly IPO preparation and the associated long-term incentive program.

Outlook and guidance

• Medium-term targets are net sales above SEK 5bn, adjusted EBITA margin above 8%, net debt/adjusted EBITDA below 1.0x and dividends of 25% of net income; R12 sales were SEK 3.05bn and margin 8.2%.

• Management expects double-digit growth in Sweden and served markets, primarily Norway, and expressed confidence in achieving communicated financial targets.

• High tender activity is expected to continue through fall and winter across markets and categories; several large Svenska kraftnät partnering projects are expected to tender.

• Priorities include disciplined project execution, recruiting specialist high-voltage expertise and building Norway’s team and delivery capabilities.