Systemair (SYSR) Q3 24/25 earnings summary

Executive summary

• Net sales for Q3 2024/25 increased 7.6% year-over-year to SEK 3,042 million (EUR 3.042 billion), with organic growth of 5.4% and positive currency effects of 1.6%.

• Growth was achieved in all regions except Eastern Europe, with strongest performance in Middle East, Asia, Australia, and Africa.

• Gross margin improved to 35.3% from 33.9% last year, driven by high factory utilization and cost efficiencies.

• Adjusted operating profit was SEK 213 million (EUR 213 million), maintaining a 7.0% margin, in line with the previous year.

• Profit after tax was SEK 135 million, a significant improvement from a loss of SEK 24 million last year, mainly due to one-time adjustments.

Financial highlights

• Organic growth in the Nordics was 7.1%, Western Europe 3.4%, North America 12.8%, and Middle East/Asia/Australia/Africa 15.2%; Eastern Europe saw a decline of -9.8%.

• Free cash flow for the quarter was SEK 54.6 million, down from SEK 381.2 million last year, due to higher investments and increased working capital.

• Net debt decreased to SEK 981 million, with a net debt/EBITDA ratio of 0.62.

• Q3 operating profit (EBIT) was SEK 201 million (up from SEK 73 million); Q3 earnings per share: SEK 0.62 (from SEK -0.12).

• Net financial items improved to SEK -17.3 million from SEK -62.3 million, with lower interest expenses and currency effects.

Outlook and guidance

• Management is more positive on the outlook, especially in the Nordics, with increased customer activity and renovation market momentum.

• Well-invested production facilities and broad product range position the company for long-term profitable growth and further M&A.

• Infrastructure projects in Germany and potential rebuilding in Ukraine could drive future demand.

• Participation in major industry events and ongoing product innovation support future growth.