Systemair AB (STU:52SA) Q3 2025 Earnings Call Highlights: Strong Sales Growth Amid Regional ...
Net Sales: SEK3.042 billion, up 7.6% from SEK2.827 billion last year.
Organic Growth: 5.4% overall, with growth in all regions except Eastern Europe.
Gross Margin: 35.3%, compared to 33.9% in the previous year.
Adjusted Operating Profit: SEK213 million, with an operating profit margin of 7.0%.
Profit After Tax: SEK135 million, compared to minus SEK24 million last year.
Cash Flow: Decreased by SEK34.2 million due to increased working capital.
Free Cash Flow: SEK54.6 million, down from SEK381.2 million last year.
Net Debt: SEK981 million, compared to SEK1.079 billion last year.
Net Debt to EBITDA: 0.62, indicating low leverage.
Geographic Sales Breakdown:
Nordics: 7.1% organic growth.
Western Europe: 3.4% organic growth.
Eastern Europe: -9.8% organic decline.
North America: 12.8% organic growth.
Middle East, Asia, Australia, and Africa: 15.2% organic growth.
Warning! GuruFocus has detected 4 Warning Signs with AFLYY.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Systemair AB (STU:52SA) reported a 7.6% increase in net sales, reaching SEK3.042 billion, with organic growth of 5.4%.
The company achieved strong organic growth in regions such as North America, Middle East, Asia, Australia, and Africa.
Systemair AB (STU:52SA) reported a robust gross margin of 35.3%, up from 33.9% in the previous year.
The company has successfully reduced its emissions in scopes 1 and 2 by 10% compared to the last quarter of the previous year.
Systemair AB (STU:52SA) is well-prepared for increased M&A activity, with a low net debt to EBITDA ratio of 0.62, providing ample headroom for strategic investments.
Sales in Eastern Europe declined by 9.8%, with significant decreases in Poland, Slovenia, and Estonia.
The German market remains challenging, with a decrease in sales, impacting overall performance in Western Europe.
The US market is experiencing softness, partly due to an uncertain political climate affecting short-term investments.
Selling and administrative expenses increased, including a loss from bad debts of SEK4.8 million.
Free cash flow decreased significantly to SEK54.6 million from SEK381.2 million in the previous year, mainly due to increased working capital and high investment levels.
Q: Can you provide insights into the sales development in Western Europe, particularly the German market, and the potential impact of the new infrastructure fund? A: Germany is a significant market for us, currently our second or third largest. The market is soft, especially in comfort ventilation, but infrastructure projects are performing well. The new infrastructure fund could boost demand, but such projects typically have long lead times, taking 6 to 12 months from order to delivery. (Roland Kasper, CEO)
Q: Regarding the transition to energy-efficient refrigerants in the US, could this lead to price increases in the short term? A: We saw strong business development in North America in December as projects were finalized using older refrigerants. The outlook for new refrigerants is positive, with strong development in Canada. The US market is softer, influenced by political and investment uncertainties. (Roland Kasper, CEO)
Q: How are you managing the tariff implications between the US and Canada? A: We have limited interdependence between US and Canada operations. We have pre-stocked products in Canada and can shift production to the US within three months if tariffs impact us. We have sufficient capacity in our US factory to handle this. (Anders Ulff, CFO)
Q: Can you update us on the Menerga situation, including order and delivery status from the new site and expected cost savings? A: The ramp-up in Slovenia is progressing better than planned, with production exceeding expectations. We aim for annual savings of SEK70 million, and we are focusing on sales to leverage the new technical platform. (Roland Kasper, CEO)
Q: What is your outlook for the Nordic market, given the recent solid organic growth? A: The Nordic market is performing well, with strong growth in Denmark and Finland. Sweden is seeing increased residential activity, while Norway's residential market is slower. Overall, the Nordic markets are healthy, with positive signs for future growth. (Roland Kasper, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
Nvidia Ignites Quantum Stocks Rally With Bold Forecast at Paris Event
June 11 - Quantum-focused stocks climbed in early trading Wednesday after Nvidia (NVDA) Chief Executive Jensen Huang said the sector is approaching a critical phase in its development. Speaking at the GTC conference in Paris, Huang said quantum computing is nearing an inflection point, citing growing progress in making the technology more applicable for real-world problems. He also highlighted Nvidia's Cuda Q platform, a quantum computing service introduced to support further industry growth, according to a Wednesday press release. Warning! GuruFocus has detected 3 Warning Signs with RGTI. Huang said quantum systems, which process data using qubits rather than traditional bits may soon be capable of tackling meaningful challenges across industries. IonQ (NYSE:IONQ) shares advanced about 4% following the remarks, while Rigetti Computing (NASDAQ:RGTI) rose 5%. Quantum Computing (NASDAQ:QUBT) jumped 8%, and both D-Wave Quantum (NYSE:QBTS) and Arqit Quantum (ARQQ) added nearly 3%. Huang's comments mark a shift in tone. In January, he said practical use cases for quantum computing were still decades away. But by March, he revised that outlook during Nvidia's first Quantum Day, suggesting faster progress than previously expected. Earlier this week, Nvidia said it partnered with IonQ, Amazon Web Services, and AstraZeneca to develop a quantum-enhanced workflow in computational chemistry. This article first appeared on GuruFocus.
Yahoo
17 minutes ago
- Yahoo
Nvidia Teams With Novo Nordisk to Supercharge Early-Stage Drug R&D
June 11 - Novo Nordisk (NYSE:NVO) has teamed up with Nvidia (NASDAQ:NVDA) to integrate artificial intelligence into its drug development pipeline, aiming to speed up early-stage research, according to a Wednesday press release. The collaboration will build AI models tailored for Novo Nordisk's researchers, helping simulate and optimize early clinical trial stages. The tools are designed to support work across advanced simulation platforms and physical AI systems. Warning! GuruFocus has detected 4 Warning Signs with NVDA. This effort will also back Novo Nordisk's existing agreement with the Danish Centre for AI Innovation. That institution manages Gefion, Denmark's flagship AI supercomputer, which will play a key role in powering the new drug discovery tools. Nvidia said the initiative will apply generative and agent-based AI to pharmaceutical R&D. The announcement came during the chipmaker's GTC event in Paris, where it also highlighted broader partnerships across Europe. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27 minutes ago
- Yahoo
General Motors Expands U.S. Capacity with $4 Billion Investment
General Motors (NYSE:GM) is committing $4 billion over two years to boost U.S. manufacturing capacity for both gas and electric vehicles. Warning! GuruFocus has detected 2 Warning Sign with GM. General Motors will channel the investment into three plants: Michigan, Kansas and Tennessee. In Michigan, full-size SUVs and light-duty pickupsonce earmarked for electric truckswill roll off the line starting in early 2027. Kansas will ramp up Chevrolet Equinox production mid-2027 and begin building the all-electric Bolt by late 2025, with plans to adapt the facility for next-generation affordable EVs. Tennessee will add gas-powered Chevrolet Blazer assembly in 2027, alongside the electric Cadillac LYRIQ and VISTIQ and existing XT5 production. Collectively, these upgrades push GM's U.S. assembly capacity north of two million vehicles per year. This latest commitment follows GM's recent $888 million pledge to modernize its Tonawanda Propulsion plant for next-gen V-8 engines, underscoring a dual strategy of sustaining its legacy gas-vehicle lineup while accelerating its EV roadmap. By repurposing and expanding existing factories, GM aims to balance short-term demand for internal-combustion models with long-term electrification goals, optimizing capital spend and preserving thousands of U.S. jobs. Why It Matters: GM's capital allocation signals confidence in near-term gas-vehicle sales even as it scales EV production, hedging against market swings while aligning capacity with evolving consumer preferences. This article first appeared on GuruFocus. Sign in to access your portfolio
