Lindab International (LIAB) Q1 2026 earnings summary

Executive summary

• Group sales declined year-over-year to SEK 3,003 million, with organic sales down 3% and currency effects at -4%; Ventilation Systems remained stable with improved margins, while Profile Systems faced a challenging quarter with negative operating profit due to low sales, slow production ramp-up, and harsh winter conditions.

• Operating profit and margin were negatively impacted by weak Profile Systems results, while Ventilation Systems improved its operating margin for the third consecutive quarter.

• Organic growth was achieved in the Northern European ventilation business, but market conditions remained challenging in Germany.

• No one-off items or restructuring costs were reported in the quarter.

Financial highlights

• Sales decreased to SEK 3,003 million from SEK 3,214 million year-over-year, a 3% decline, with adjusted operating margin at 6.3% (down from 7.1%).

• Adjusted operating profit fell to SEK 188 million from SEK 228 million.

• Cash flow from operating activities dropped to SEK 45 million from SEK 160 million, mainly due to working capital build-up.

• Net debt stood at SEK 4,410 million, with net debt/EBITDA at 2.6.

• Equity/assets ratio improved to 50% from 47% year-over-year.

Outlook and guidance

• European construction and ventilation markets are expected to gradually improve or return to growth in 2026, with Northern Europe stabilizing and Germany lagging.

• Profile Systems market anticipated to stabilize in 2026, but at low levels.

• Price increases announced or planned to offset higher raw material, steel, aluminium, and transport costs; further increases possible in Q3.

• Geopolitical uncertainty and input cost inflation remain risks, but previous investments are expected to drive profitability as volumes recover.