Sweden's Lindab Q3 adjusted EBIT beats estimates

Overview

• Sweden ventilation solutions group's Q3 sales were flat yr/yr, meeting analyst expectations

• Q3 adjusted EBIT beat analyst estimates; adjusted EPS declined yr/yr

• Company completed acquisitions in Ireland and Italy during the quarter

Outlook

• Company expects modest growth in European ventilation and Scandinavian profile markets in 2027

• Lindab sees improved market conditions in Sweden, with continued weakness in Germany

• Company plans continued efficiency improvements and aims to grow faster than the market

Result Drivers

• NORDIC GROWTH - Co said organic sales rose 5% in the Nordic markets, with Sweden showing the strongest development

• PRICE ADJUSTMENTS - Co said price increases helped offset higher transportation and input material costs, improving gross margin

• WEAK WESTERN EUROPE - Co said sales and profit were held back by weaker performance in certain western European markets, especially Germany

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy."

• Wall Street's median 12-month price target for Lindab International AB is SEK132.50, about 0.8% above its October 22 closing price of SEK131.50

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 22 - Sweden's Sandvik Q3 revenue beats estimates on order growth

• Oct 22 - Sweden's AFRY beats Q3 sales estimates on strong order backlog

• Oct 22 - Sweden's Atlas Copco Q3 revenue slightly beats estimates, orders up 29%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)