Systemair AB reported net sales of SEK 3.28 billion for the first quarter of fiscal 2026/27, a 6% increase from SEK 3.09 billion in the same period last year. Organic growth of 6% was recorded across all regions, marking the eighth consecutive quarter of expansion. Adjusted operating profit totaled SEK 324 million, with an adjusted operating margin of 9.9%, up 0.6 percentage points from 9.3% a year earlier and approaching the company’s long-term target of 10%.
Profit after tax rose 18.6% to SEK 229 million, while free cash flow declined to SEK 69 million from SEK 108 million. Gross margin improved slightly to 36.5%, and the tax rate decreased to 25.2% from 27.3%. Net financial items were negative SEK 5 million, reflecting higher interest expenses compared with the prior year. Net debt increased by SEK 270 million to SEK 1.1 billion, primarily due to the acquisition of Temspec Incorporated, completed on July 23.
Regional performance varied, with North America leading at 15% organic growth, followed by Eastern Europe at 11% and the Nordics at 8%. Western Europe, the single largest region accounting for 44% of sales, grew 3%, while the Middle East, Asia, Australia, and Africa reported 4% growth. The company cited strong demand in Australia and Malaysia but noted slower activity in Turkey and Saudi Arabia.
Systemair’s leverage ratio, measured as net debt to adjusted EBITDA, stood at 0.65. Capital expenditures totaled SEK 114 million, allocated to production capacity expansions in Slovakia and Sweden. Selling and administrative expenses rose 5% in comparable units, excluding adjustments of SEK 13 million related to U.S. operations. The company also reported an 11% reduction in Scope 1 and 2 emissions compared with its April 2024 baseline, aligning with its 42% reduction target by April 2030.
President and CEO Robert Larsson highlighted the company’s diversified global customer base as a foundation for resilient growth, while CFO Anders Ulff noted that the quarter’s performance reflected seasonal trends, with activity accelerating in June following a slower start in May.
Systemair’s shares were up 1.98% at $87.40, trading 7.6% below its 52-week high and 30% above its 52-week low. The company maintains a P/E ratio of 24.36 and a dividend yield of 1.69%.
