Systemair Q4 2024/25 presentation: Improved margins despite revenue headwinds

Published 05/06/2025, 06:12
Systemair Q4 2024/25 presentation: Improved margins despite revenue headwinds

Introduction & Market Context

Systemair AB (NASDAQ OMX:SYSR), a global ventilation solutions provider, presented its fourth quarter and full-year 2024/25 results on June 5, 2025. The presentation, delivered by CEO Roland Kasper and CFO Anders Ulff, highlighted the company’s performance amid mixed regional results and currency challenges.

Founded in 1974 and headquartered in Skinnskatteberg, Sweden, Systemair has established a global footprint with sales companies in 51 countries, 26 production facilities across 19 countries, and approximately 6,700 employees. The company exports to 135 countries, emphasizing its core values of simplicity, reliability, and energy-efficient ventilation solutions.

As shown in the following market distribution chart, Systemair maintains a diversified geographic presence, with Western Europe representing its largest market at 44% of sales, followed by the Nordic region at 17%:

Quarterly Performance Highlights

Systemair reported net sales of SEK 3,002.2 million for Q4 2024/25, representing a 2.2% decrease compared to the same period last year. However, the company achieved organic growth of 0.5%, with the overall decline primarily attributed to negative currency effects of 3.0%.

The following chart illustrates Systemair’s net sales performance over recent quarters:

Regional performance varied significantly, with European markets showing strength while North America and Asian markets faced challenges. The company reported organic growth in the Nordic region (4.5%), Western Europe (5.5%), and Eastern Europe & CIS (11.2%), while North America and Middle East/Asia/Australia/Africa experienced organic declines of 8.8% and 16.8%, respectively.

This detailed geographic breakdown highlights the regional variations in Systemair’s performance:

Detailed Financial Analysis

Despite the slight revenue decline, Systemair improved its profitability metrics in Q4. The gross margin increased to 36.5% from 35.1% in the previous year, while adjusted operating profit rose to SEK 259.7 million, representing an operating margin of 8.7% compared to 6.8% in the same period last year.

The following chart shows Systemair’s adjusted operating profit trend over the past four years:

However, adjusted profit after tax decreased to SEK 118 million from SEK 167 million in the previous year. This decline was primarily due to significant negative currency effects on long-term receivables, loans, and bank balances, which amounted to SEK -82.3 million compared to a positive SEK 15.3 million in the previous year.

Cash flow performance showed marked improvement, with cash flow from operating activities increasing to SEK 291.7 million from SEK 217.5 million in the previous year. Free cash flow more than tripled to SEK 240.3 million from SEK 76.0 million, while net debt decreased to SEK 901.0 million from SEK 1,070.2 million.

Based on the strong financial position, Systemair’s Board of Directors has proposed increasing the dividend to SEK 1.35 per share, up from SEK 1.20 in the previous year.

Strategic Initiatives & Sustainability

Systemair has made significant progress on its sustainability goals, exceeding targets for emissions reduction and workplace safety. The company reported a 36% reduction in Scope 1 and 2 emission intensity (exceeding the 32% target) and a 19% reduction in work-related injuries with sickness absence (exceeding the 15% target).

As illustrated in the following performance metrics, Systemair achieved two of its three prioritized sustainability targets:

A major milestone for Systemair’s sustainability efforts was the approval of its emission targets by the Science Based Targets initiative (SBTi). The company has established both near and long-term targets covering emissions in Scopes 1, 2, and 3, with a goal to achieve net-zero greenhouse gas emissions by fiscal year 2050/51.

Product Launches & Market Expansion

Systemair continues to expand its global footprint, inaugurating a new 19,000 m² manufacturing facility in Hyderabad, India in March. The company also secured a significant project to supply fans and jet fans for the Event District Car Park in Diriyah, Saudi Arabia, representing its fifth car park project in the region and first complete delivery under the "MADE IN SAUDI ARABIA" label.

At the ISH fair in Frankfurt, which attracted over 166,000 visitors, Systemair showcased several innovative product launches. The Topvex HP (NYSE:HPQ), a compact all-in-one air handling unit with integrated heat pump, was prominently featured:

Another notable product introduction was the Menerga CO₂mpass, which uses the natural refrigerant R-744 (CO₂) with a minimal Global Warming Potential (GWP) of only 1, completely free from per- and polyfluorinated substances:

These product launches align with Systemair’s strategic focus on energy efficiency and sustainability, positioning the company to capitalize on growing demand for environmentally friendly ventilation solutions as global building standards continue to evolve toward greater energy efficiency.

Full presentation:

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

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