Systemair (SYSR) Q1 24/25 earnings summary

Executive summary

• Organic sales in Q1 2024/25 were nearly flat year-over-year, reflecting resilience in a challenging market environment.

• Net sales for Q1 2024/25 decreased by 2.0% year-over-year to SEK 3,111 million, with operating profit (EBIT) at SEK 305 million, down from SEK 335 million.

• Major acquisition of PHEM Engineering in Malaysia completed, expanding presence in Southeast Asia and Australia.

• Menerga production relocation from Germany to Slovenia finalized, expected to yield significant cost savings.

• 50th anniversary celebrated in 2024.

Financial highlights

• Net sales for the quarter were SEK 3,111 million, down 2% from last year; organic growth was -0.3%.

• Gross margin improved to 36.0% from 34.6% last year, driven by price increases, product mix, and divestment of the AC business.

• Operating profit margin was 9.8%, down from 10.5% last year; operating profit was SEK 305.2 million, down 8.9%.

• Profit after tax was SEK 210 million, compared to SEK 242 million last year; EPS (basic) was SEK 1.01.

• Free cash flow was SEK 91.3 million, down from SEK 177 million last year.

Outlook and guidance

• No price adjustments planned for the next 3–5 months; market conditions do not currently warrant changes.

• Capacity investments in Lithuania, Italy, Canada, and Germany nearing completion; Norway extension started.

• Menerga reorganization expected to generate annual cost savings of at least SEK 70 million from 2025/26.

• Demand for energy-efficient ventilation solutions expected to remain strong, supported by regulatory directives.

• Well-invested production facilities and broad product range position the company for long-term growth.