CEO’s comments
2025-12-04
Quarter 2 2025-26
After ten years as CEO, it is particularly pleasing to sign off with our strongest quarter historically in terms of both sales and profit. Sales totalled SEK 3,271 million (3,146). Organic growth of 8.2 percent and the impact of cost adjustments implemented earlier showed through in an operating margin of 11.9 percent (11.0). The gross margin continued to firm up during the quarter to 37.7 percent (37.3). All regions report organic growth and we are especially pleased to note more positive signals for the quarter in Western and Eastern Europe. During the quarter, we also finalised the acquisition of Nadi in India. A company that provides a good fit with Systemair well in the form of good synergies in the region and in the product area.
The market
All regions report good organic growth in the quarter. Sales were impacted by translation e2ects of -5.6 percent, mainly due to a stronger Swedish krona. Region Western Europe reports very robust organic growth of 11.1 percent. We are seeing positive signals in the important German market, but also an upward trend in Italy and the Netherlands, among other countries. A positive sales trend in Eastern Europe was also recorded, with organic growth of 5.0 percent. In North America, the signals in the quarter are mixed. Uncertainty surrounding the tariffs imposed again affected the market. During the year, Systemair introduced price increases as a result of the tariffs. In the Middle East, Asia, Australia and Africa, organic growth was positive.
Acquisitions & investments
In August 2025, the acquisition of Nadi Airtechnics Ltd, a leading Indian manufacturer of industrial fans, was finalised. We see great potential in this acquisition and believe that it provides good opportunities for synergies and continued growth in India. Nadi's products make a good fit with our existing local product range in fans. The company has its headquarters and production facility in Chennai. It employs 220 people and reports sales of approximately EUR 13,5 million for the previous financial year. Nadi’s EBIT margin exceeds that of Systemair. Through the acquisition, the total number of employees in the Indian market today totals around 1,000.
We are continuing to invest for the long term to strengthen our delivery capacity and product development. We are currently investing in tripling production capacity at our factory in Saudi Arabia. The new facility will increase our chances of landing projects via local production under the 'Saudi Made' label. Our strong balance sheet provides ample scope for further future investments and strategic acquisitions. Major investments are also in progress in Sweden, Slovakia, India and Norway.
Sustainability
Our energy-effcient products contribute significantly to energy savings and improved indoor air, and thus o2er major business potential for the future. Reducing energy demand – and as a result lowering emissions from buildings – is one of the most important challenges to society if it is to reduce climate impact and achieve the climate targets that have been set.
We are also particularly proud of our efforts in recent years to reduce the number of occupational injuries, which have delivered clear outcomes. By strengthening structure, procedures and monitoring, we are contributing to more reliable and safe production. We take the entire value chain into account, manage risks and are active in seizing opportunities for long-term improvements.
Outlook is favourable
Rising demand is evident several regions and key countries. However, external factors may affect demand in the short term. We are confident that future demand for energy effcient ventilation solutions will hold up well.
It is with some sadness that I am now leaving Systemair, a company that is close to my heart. I am optimistic about the future and believe in continued excellent growth for the ventilation industry in general and a well managed company like Systemair in particular.
Roland Kasper
President and CEO
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Systemair has a well-proven business concept and business model, which is reflected in steadily increasing sales and profit. A large share of our profits are invested in a forward-looking way in increased production development, sustainability initiatives and strategic acquisitions.
