Q3 2026 Lagercrantz Group AB Earnings Call Transcript
Key Points
- Lagercrantz Group AB (FRA:LG72) reported a strong quarter with revenues exceeding SEK10 billion for the first time, marking a significant milestone.
- The company achieved a 20% growth in EBITDA, with the EBITDA margin improving to 18%, indicating strong operational performance.
- The Electrify division posted a particularly strong quarter with a 55% increase in EBITDA and a margin of 21.2%, driven by strong market demand in electrification and infrastructure.
- The company completed 12 acquisitions in the last 12 months, adding SEK1.4 billion in business volume, which corresponds to an acquisition pace of 15%.
- Lagercrantz Group AB (FRA:LG72) maintained a high return on equity of 29%, reflecting efficient use of shareholder funds and strong profitability.
- The US market faced challenges due to geopolitical tensions and currency effects, impacting the Niche Products division's performance.
- The TecSec division struggled with a slight decline in EBITDA and margin due to ongoing difficulties in the construction sector.
- Currency headwinds negatively impacted the company's financials by 4%, affecting overall profitability.
- Organic growth was relatively modest at 2%, with most revenue growth driven by acquisitions.
- The company faces increased competition in the market, which could pressure future growth and profitability targets.
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Thank you, and welcome, everyone, to the quarterly call from us. Great to have you with us all. And yeah, as normal, we try to have this as 45 minutes or roughly plus, minus five minutes or so session where we go over sort of give a brief introduction to the group and then go with the numbers and then look a little bit ahead at the end and also look at the acquisitions, the most recent one we've done.
So welcome, everyone, and we will get going. Together with me here is Peter as well, of course. So we're two of us here. So as a short introduction to the group, well, for those of you that are new to us, we are a tech group or a buy-and-build company that are buying and acquiring sort of niche businesses, which we will highlight along the way more as we go along.
We have organized ourselves into the five divisions, you can see there but we all run the company very autonomously and independent companies running under their own brand name (inaudible) in their own single markets. And currently, we are
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