Lindab Q1 2025 slides: Stable results amid restructuring and strategic acquisitions

Introduction & Market Context

Lindab International AB (STO:LIAB) presented its Q1 2025 results on May 6, showing resilience in a challenging market environment. The Swedish ventilation and building products company reported stable financial performance despite headwinds in several key markets, with its stock price responding positively, jumping 8.75% to 221.2 SEK on the day of the presentation.

The company highlighted that while market conditions remain difficult, there has been no immediate impact from global economic uncertainty. Lindab continues to execute its three-pronged strategy focused on cost program implementation, divestments of underperforming units, and strategic acquisitions.

Quarterly Performance Highlights

Lindab reported Q1 2025 sales of 3,214 million SEK, a modest increase from 3,147 million SEK in Q1 2024. This growth was entirely acquisition-driven, with organic growth at -3% compared to -10% in the same period last year. The company’s operating profit showed resilience at 228 million SEK versus 225 million SEK in Q1 2024, maintaining a stable operating margin of 7.1%.

As shown in the following financial performance summary:

The Ventilation Systems segment achieved its highest ever Q1 sales at 2,600 million SEK, up from 2,507 million SEK in Q1 2024. This growth was driven by a 7% contribution from acquisitions, offsetting a 3% organic decline. Meanwhile, Profile Systems reported sales of 614 million SEK, down from 640 million SEK, with a 4% organic decline.

The quarterly sales trends across segments are illustrated here:

In terms of profitability, Ventilation Systems recorded an adjusted EBIT of 234 million SEK with a 9.0% margin, slightly down from 241 million SEK and 9.6% margin in Q1 2024. Profile Systems showed improvement with an adjusted EBIT of 7 million SEK and a 1.1% margin, compared to -3 million SEK and -0.5% margin in the previous year.

The following chart demonstrates the operating profit resilience across segments:

Cash flow from operating activities decreased to 160 million SEK from 208 million SEK in Q1 2024, though the company emphasized that it remains strong enough to support additional acquisitions. Net debt stood at 4,366 million SEK, slightly down from 4,477 million SEK, with leasing liabilities accounting for 1,559 million SEK. The net debt/EBITDA ratio increased to 2.6 from 2.0, while financial net debt/EBITDA rose to 2.1 from 1.4.

Strategic Initiatives

Lindab is actively implementing structural measures to improve profitability. The company has outlined a comprehensive plan to close 10 sites for warehousing, stores, and local production, with 8 sites already closed as of May. Additionally, personnel reductions targeting 180 full-time positions are underway, with 150 cuts already implemented.

The details of these structural measures are outlined below:

A significant strategic shift involves Profile Systems’ exit from Eastern Europe. The company has already closed operations in the Czech Republic, Estonia, and Poland, while divesting its Slovak business. Operations in Hungary and Romania are expected to be divested in Q2 2025.

Simultaneously, Lindab continues its acquisition strategy, having completed several purchases that collectively add 1,542 million SEK in annual sales. Recent acquisitions include Ventia (240 million SEK in sales, expected to be consolidated in H2 2025), Acomat (80 million SEK), ATIB (250 million SEK), and several others throughout 2024.

The company’s acquisition strategy is detailed in this summary:

Forward-Looking Statements

Lindab expressed confidence in its readiness for market recovery, stating it is "ready for take-off" when conditions improve. The company expects the Ventilation Systems market to remain challenging in the near term but anticipates demand will pick up slowly in the second half of 2025. Profile Systems is already showing early signs of recovery.

Management highlighted that significant investments made in recent years will drive strong profitability when volumes increase. The company also expects to accelerate synergies from the 29 acquisitions completed since 2020, while benefiting from its trimmed cost base and divestment of low-performing units.

Lindab’s three priorities for profitable growth in 2025 remain focused on full implementation of the cost program, strategic divestments, and continued acquisitions, positioning the company to capitalize on market recovery while maintaining operational discipline in the current challenging environment.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.