Systemair AB Reports Strong Financial Growth in Q3 2024/25 with 5.4% Organic Growth

Systemair AB Interim Report Q3 2024/25

On March 6, 2025, Systemair AB reported its interim results for the third quarter of the financial year 2024/25, showcasing a solid financial performance amidst a challenging operational environment. During this quarter, which spans from November 2024 to January 2025, the company achieved an organic growth rate of 5.4%, a slight increase from the previous year’s results.

Financial Highlights

The report highlighted a significant increase in net sales, climbing by 7.6% to reach SEK 3,042 million, compared to SEK 2,827 million in the previous quarter. This growth was bolstered by a favorable currency effect contributing an additional 1.6%. Moreover, the company’s adjusted operating profit (EBIT) stood at SEK 213 million, up from SEK 198 million, maintaining an adjusted operating margin of 7.0%, which matches the previous year.

Interestingly, the overall operating profit, which includes some additional costs and events, saw a remarkable increase to SEK 201 million from 73 million, pushing the operating margin to 6.6%, significantly higher than the 2.6% recorded in the same quarter last year. The profit after tax for the quarter amounted to SEK 135 million, a substantial recovery from a loss of SEK 24 million in the previous year. Earnings per share also displayed a positive trend, moving to SEK 0.62 from a loss of 0.12.

Cash flow generated from operating activities was robust, totaling SEK +206 million, although a decrease compared to SEK 403 million in the prior year.

Nine-Month Performance

Looking at the broader context, the results for the nine months leading up to January 2025 showed a 2.5% organic growth, slightly down from 5.2% in the prior year. Net sales showed a more modest increase of 1.2%, now at SEK 9,299 million compared to SEK 9,188 million, albeit adversely impacted by a currency effect of -1.8%.

Adjusted operating profits for the nine-month period stayed relatively stable at SEK 866 million versus SEK 858 million previously, with an adjusted operating margin that again held steady at 9.3%. Further analysis revealed an operating profit of SEK 854 million, up from 730 million last year, contributing to an improved operating margin of 9.2%.

The profit after tax surges to SEK 581 million, significantly surpassing the prior year’s figure of SEK 464 million. Earnings per share increased to SEK 2.77 from 2.23, indicating strong profitability.

CEO Insights

Roland Kasper, the President and CEO, commented positively on the quarterly results. He stated, “The organic growth of 5.4% is encouraging, and despite the typical slowdown in this period due to seasonal factors, it’s noteworthy that all regions except Eastern Europe reported growth. We acknowledge that this quarter usually coincides with the lowest seasonal activity due to holidays. However, we are pleased to announce an adjusted operating margin that remains robust at 7.0%.”

Kasper emphasized the continued focus on organic growth and profitability. “Our efforts in building a sustainable business are evident through these results, and we are on track to improve both growth and profitability moving forward.”

Looking Ahead

The company plans to hold an analyst meeting to further discuss these results, inviting stakeholders to a presentation at 0900 CET on March 6, 2025. This will be an opportunity for analysts and media to engage with the executives directly and ask questions about the quarter’s performance and future strategies.

For those wishing to engage in the discussions, a webcast and teleconference access will be made available, with the details provided for participation.

In summary, Systemair AB’s third-quarter performance signifies not only resilience in a challenging market but also a commitment to sustainable growth and operational efficiency. As the company continues to focus on enhancing its operational capabilities and exploring new market opportunities, investors and stakeholders eagerly anticipate the results of these initiatives in the coming quarters.