Q2 2025 Lindab International AB Earnings Call Transcript
Key Points
- Ventilation systems achieved a strong operating margin of 9.9% despite challenging market conditions.
- Organic growth for the quarter was 12%, indicating positive underlying business momentum.
- Strong cash flow from operating activities amounted to SEK331 million in the second quarter.
- Net debt to EBITDA ratio remained below the target of 3 times, at 2.7 times.
- Successful acquisition of Ventia in Poland, enhancing Lindab's presence in a key European market.
- Sales and profitability in profile systems were negatively impacted by low volumes in the project business.
- Currency effects negatively affected sales by 4% during the quarter.
- Challenging market conditions in Germany and Sweden continued to influence sales negatively.
- Operating profit was impacted by unusually large currency effects, reducing it from SEK297 million to SEK281 million.
- Larger projects in the Swedish market remain at low levels, affecting profile systems' performance.
Good morning and welcome to this presentation of Lindab's Q2 report. My name is Ola Ringdahl, President and CEO of Lindab Group, and with me today I have our CFO, Lars Ynner.
We will begin by presenting the results for the quarter, and after that, we will take a closer look at our key focus areas. Following the presentation, there will be a Q&A session.
Let's start with some highlights. Despite a continued challenging market environment, ventilation systems showed strength in the quarter, achieving an operating margin of 9.9%. This performance was driven by an improved cross margin and also from the effects of the previously announced cost reductions that are now implemented and showing effects.
For profile systems, sales and profitability were impacted by continued low volumes in the project business. During the quarter, currency effects were higher than normal, affecting sales negatively by 4%.
Let's take a closer look at our sales development. Ventilation systems were affected by
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