Release Date: June 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Systemair AB (FRA:52SA, Financial) achieved strong organic growth in all European regions, with notable increases in Western and Eastern Europe.
- The company inaugurated a new state-of-the-art manufacturing facility in Hyderabad, India, enhancing production capacity.
- Systemair's emission targets were approved by the Science Based Targets initiative, marking a significant milestone in sustainability efforts.
- The company reported a strong gross margin of 36.5%, up from 35.1% the previous year, due to high utilization in key factories and a favorable product mix.
- Systemair's net debt decreased to SEK901 million from SEK1,070 million the previous year, providing ample headroom for strategic M&A and investments.
Negative Points
- Net sales declined by 2.2% compared to the previous year, primarily due to negative currency effects.
- North America experienced a negative organic growth rate of -8.8%, impacted by tariff discussions and changes in refrigerant legislation.
- The Middle East, Asia, Australia, and Africa regions saw an organic sales decline of -16.8%, driven by market challenges in Turkey and India.
- Profit after tax decreased to SEK118 million from SEK167 million the previous year, affected by negative currency effects.
- The target for female leaders was not met, with the outcome negatively impacted by restructuring in Turkey.
Q & A Highlights
Q: Can you elaborate on the development in North America and whether the weaker numbers are temporary?
A: Anders Ulff, CFO: The dip in North America was due to changes in refrigerant legislation and seasonality, especially in classroom units from Canada. The market is cautious due to tariffs, but we are optimistic about future volumes.
Q: How is the M&A pipeline looking as you enter the new fiscal year?
A: Roland Kasper, CEO: We have a positive pipeline with several projects in progress. Some may conclude soon, while others might be postponed. Overall, we are optimistic about upcoming decisions.
Q: What is the outlook for the German market, given its current slowdown?
A: Roland Kasper, CEO: Feedback from local companies indicates stabilization. Despite previous fluctuations due to political and regional issues, the market is now more stable.
Q: Can you quantify the impact of tariffs on your US sales, particularly imports from Canada?
A: Roland Kasper, CEO: We operate locally, with Canadian factories mainly serving Canada. Imports to the US are limited, and tariffs are managed by US distributors. We are prepared to shift production to the US if necessary.
Q: Is the production relocation in India complete, and will it affect future sales?
A: Roland Kasper, CEO: The relocation is complete, and the new factory was inaugurated in March. We are now ramping up production, having quadrupled factory space and doubled capacity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
