Q3 2025 Lagercrantz Group AB Earnings Call Transcript
Key Points
- Lagercrantz Group AB (FRA:LG72) reported a 16% increase in net sales for the second quarter, primarily driven by acquisitions.
- The EBITA margin remained stable at a strong 17.8% for the quarter.
- The company completed two acquisitions in July, contributing to a rolling 12-month revenue increase of 15%.
- The niche products division showed strong performance with a 21% revenue growth and an all-time high EBITA margin of 22.9%.
- The international division reported a 10% increase in EBITA, with a margin of 17.6%, indicating positive long-term development.
- Organic growth was slightly negative, with a 2% decline in the electrify division for the quarter.
- The tech division faced challenges, with a 5% decline in organic growth and a slight decrease in EBITA compared to the previous year.
- The control division struggled with a low EBITA margin of 12.1%, below the company's target.
- The construction-related businesses within the tech and control divisions were negatively impacted by a weak market.
- Cash flow performance did not meet the company's high ambitions for the quarter.
(audio in progress)The bar is increasing over the years. And we also see that we are becoming more Northern Europe and more international along the way, which is we feel it's also a bit of an ambition for us along the way.
So that was what the comments on the business conditions. Peter maybe you should head over and we can talk about the about the art, facts and the numbers here.
Thank you Jorgen.
So to start overall, we're quite happy with the result in the second quarter where we met the moderately tough comparables from the previous year, the net sales increased by some 16% mainly due to acquisitions which grew by 17%. The organic growth turned positive with 1% and then we had the slightly negative currency effects of 2%.
The EBITA increased by 16% where the EBITA margin was stable at a good level of 17.8% in the quarter.
The profits of the financial items increased by a good 14
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