Systemair (SYSR) Q1 25/26 earnings summary

Executive summary

• Achieved organic sales growth of 5.7% year-over-year, with positive trends in most regions except Eastern Europe.

• Net sales declined by 0.6% to SEK 3,093.5 million, mainly due to negative currency effects.

• Acquired NADI AirTechnics in India and a new manufacturing facility in Saudi Arabia to expand capacity and market reach.

• Launched new fire damper products and secured major infrastructure and public facility projects in Europe.

• CEO transition announced, with new CEO Robert Larsson effective by January 2026.

Financial highlights

• Gross margin improved to 36.4% from 36.0% year-over-year, driven by restructuring, cost reductions, and favorable product mix.

• Adjusted operating profit was SEK 288 million (margin 9.3%), down from 9.8% last year, impacted by non-recurring costs.

• Profit after tax was SEK 193 million, compared to SEK 210 million last year.

• Free cash flow increased to SEK 108.4 million from SEK 91.3 million year-over-year.

• Net debt reduced to SEK 830.5 million from SEK 1.56 billion a year ago.

Outlook and guidance

• Positive organic growth expected to continue in Nordics and Western Europe; Eastern Europe remains volatile but stable.

• Expansion focus in India and Saudi Arabia, with full-scale Saudi operations by January 2026.

• Gross margin improvement is a long-term focus, with further gains possible as currency headwinds ease.

• CapEx for the coming year projected at around SEK 350 million.

• Well-positioned for long-term, profitable growth with 26 production facilities in 18 countries.