Lindab AB: Lindab's Interim Report January-September 2025: Strong quarter for Lindab despite challenging market conditions

PRESS RELEASE

24 October 2025

Lindab delivered a strong result in the third quarter. The Group's adjusted operating margin increased to 9.7 percent driven by ongoing efficiency improvements and structural measures. The largest business area Ventilation Systems achieved the highest sales and best result ever for a third quarter. Business area Profile Systems was affected by low activity for larger construction projects, particularly in Sweden.

Third quarter 2025

• Net sales amounted to SEK 3,253 m (3,348), a decrease by 3 percent. Organic sales growth was -4 percent while net effect of acquisitions and divestments contributed positively by 3 percent. Currency effects amounted to -2 percent.
• Adjusted operating profit increased to SEK 315 m (304).
• One-off items amounted to SEK 176 m (-30). These items were not affecting cash flow.
• Operating profit increased to SEK 491 m (274).
• Adjusted operating margin increased to 9.7 percent (9.1).
• Operating margin increased to 15.1 percent (8.2).
• Profit for the period increased to SEK 400 m (158).
• Earnings per share before and after dilution increased to SEK 5.19 (2.05).
• Cash flow from operating activities increased to SEK 335 m (259).
• In July, the acquisition of the Polish ventilation specialist Ventia was completed. In addition, the acquisition of the British ventilation company HAS-Vent Holding Ltd. was completed after the approval by the UK Competition and Markets Authority.
• In July, Lindab signed an agreement to divest its operations for profile products in Hungary. The divestment is part of the previously announced restructuring within business area Profile Systems in Eastern Europe.

January-September 2025

• Net sales amounted to SEK 9,720 m (10,015), a decrease by 3 percent. Organic sales growth was -4 percent while the net effect of acquisitions and divestments contributed positively by 3 percent. Currency effects amounted to -2 percent.
• Adjusted operating profit amounted to SEK 824 m (867).
• One-off items amounted to SEK 176 m (-30). These items were not affecting cash flow.
• Operating profit increased to SEK 1,000 m (837).
• Adjusted operating margin amounted to 8.5 percent (8.7).
• Operating margin increased to 10.3 percent (8.4).
• Profit for the period increased to SEK 719 m (488).
• Earnings per share before and after dilution increased to SEK 9.34 (6.34).
• Cash flow from operating activities increased to SEK 826 m (809).

Lindab's President and CEO, Ola Ringdahl, comments:

"Lindab increased the operating profit for the third quarter and strengthened the adjusted operating margin to 9.7 percent, despite a continued challenging market. A determined focus on efficiency improvements and long-term structural measures contributed to the improvement. Business area Ventilation Systems reported its best ever third quarter in terms of sales and results.

Strong quarter for Ventilation Systems

The intense efforts to improve profitability within Ventilation Systems are now beginning to yield clear results. The business showed strong performance during the quarter, delivering an adjusted operating margin of 10.6 percent. Thanks to price adjustments, cost reductions and structural measures, both gross margin and operating margin have strengthened. Our cost reduction programme reached full effect in July, and further structural measures are underway to optimise operations even more.

Sales and results are the highest ever for a third quarter in the business area. Several countries including France, the UK and the Netherlands, Italy and Ireland reported good growth. However, challenges remain in Sweden and Germany, where low market activity has continued to negatively affect both sales and operating profit compared to previous year.

Profile Systems continues to face challenges

Business area Profile Systems continues to be negatively impacted by low activity for larger building projects, particularly in the Swedish market. However, sales to smaller projects and through builders' merchants increased during the quarter. Additional efficiency actions and structural measures are being prepared to improve profitability in Profile Systems.

During the quarter, an agreement was reached to divest the Profile business in Hungary, and negotiations are ongoing regarding the divestment of operations in Romania. Following these transactions, Lindab's operations in Eastern Europe will be solely focused on ventilation.

European steel

Steel is an important input material for Lindab, and we prioritise steel purchases from European producers. This ensures consistently high quality, as well as significant sustainability benefits. The climate impact of steel production for Lindab's products is well documented in an environmental product declaration. Shorter transport distances compared to steel from Asia or North America result in a lower climate footprint. Lindab also offers products with a considerably higher proportion of recycled steel, achieving a 60 percent lower climate impact.

Acquisitions unlock synergies

Over the past few years, Lindab has grown substantially, with many new companies becoming part of the Group. Acquisitions will remain a key part of our strategy, and we have a strong pipeline of potential candidates that could complement our business. These companies continue to operate as customer-focused profit centres. At the same time, we are identifying interesting synergies in sales, purchasing and production. We are working intensively to realise these synergies and expect them to lead to gradual profitability improvements for the Group.

The market outlook remains uncertain, and therefore we are focusing on measures within our own control to influence profitability. We expect sales to stabilise on current levels during the rest of 2025, with a gradual market recovery anticipated for 2026. Investments in automated production will strengthen margins as volumes increase.

In the longer term, we are optimistic about Lindab's opportunities to benefit from an expected increased demand for energy-efficient ventilation, which contributes to sustainable buildings and a healthy indoor climate. With a strong product portfolio, well-invested production facilities and a highly competent sales force we are more than ready."

Live webcast

A live webcast will be held at 10:00 am (CEST) on 24 October. The interim report will be presented by Ola Ringdahl, President and CEO, and Lars Ynner, CFO.

If you wish to participate via webcast please use the link below.

Q3 Report 2025

If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

Q3 Report 2025

Contacts
Ola Ringdahl
President and CEO
E-mail: [e-mail]
Phone: [phone]

Lars Ynner
CFO
E-mail: [e-mail]
Phone: [phone]

Fredrik Wahrolén
Head of Communications
E-mail: [e-mail]
Mobile: [phone]

Lindab in brief
Lindab is a leading ventilation company in Europe. Lindab develops, manufactures, markets and distributes products and systems for energy-efficient ventilation and a healthy indoor climate. The products are characterised by high quality, ease of installation and environmental thinking.

The Group had sales of SEK 13,323 m in 2024 and is established in 20 countries with approximately 5,000 employees. Western Europe accounted for 44 percent of sales in 2024, the Nordic region for 42 percent, Central Europe for 10 percent and Other markets for 4 percent.

The share is listed on the Nasdaq Stockholm, Large Cap, under the ticker symbol LIAB.