Continued growth and improved profitability
2026-08-27
Quarter 1 (May-Jul) 2026-27
Organic growth in the quarter was 6 percent with all regions contributing positively, and it is particularly pleasing that North America and Eastern Europe continued to post double digit organic growth. The gross margin was stable while the adjusted operating margin improved to 9.9 percent (9.3). Our profitability target of 10 percent is therefore well within reach. The improvements confirm that our targeted efforts are bearing fruit.
The market
Our markets continue to be dominated by geopolitical uncertainty and mixed demand, but we are seeing signals that indicate the possibility of improvements, going forward. Sales growth was positive in all regions, with the strongest of all being organic growth of 15 percent in North America. In the Nordic region, volume growth was favourable in all countries. The Swedish market continues to develop encouragingly. Sales in the important Western Europe region show a somewhat mixed trend over the quarter. In Eastern Europe, the market once again developed strongly in most of the countries in the region, with organic growth of 11 percent. In the Middle East, Asia, Australia and Africa, organic sales growth was slightly lower at 4 percent. During the quarter, we implemented a price increase to offset increased component costs.
Acquisitions & investments
In July, the Group acquired Temspec, Canada, a leading manufacturer of decentralised ventilation systems for schools and multi-family residential buildings. The acquisition strengthens Systemair's position in the North American market and makes us a leading supplier of ventilation for schools. Through complementary products and an established network of sales representatives, we identify good opportunities to broaden our market presence and increase sales in the region. Temspec's products excellently complement our existing local product offering. Headquartered in Missisauga, Ontario, the company currently has 90 employees and sales of approximately SEK 200 million. The company’s EBIT margin exceeds that of Systemair. We are continuing to invest for the long term to strengthen our delivery capacity and product development. Our strong balance sheet provides great scope for further acquisitions.
Energy efficiency and sustainability
Systemair places great emphasis on offering energy-efficient products that improve indoor air quality while lowering energy demands in facilities. Our strategy of owning our production properties enables us to invest in our own facilities to augment our supply capacity, enhance our energy efficiency and reduce our own carbon emissions. During the first quarter, our solar power plants produced 1.4 million kWh, which corresponds to an increase of 17 percent compared to the same period last year. More own solar power not only reduces emissions but also our costs and increases the value of our buildings.
Outlook is favourable
The first quarter of the new fiscal year reaffirms the strength of Systemair's business model. In a world dominated by uncertainty, we continue to benefit from our strong local market presence, our broad product range and our ability to adapt operations to local market conditions. Our decentralised organisation provides both flexibility and agility. During the year, we will continue to strengthen our focus on business acumen, customer value and operational efficiency. By developing our sales organisation, refining our working practices and continuously evaluating and improving operations, we are putting the conditions in place for long-term robust development.
The long-term drivers in the ventilation market remain strong. Demands for energy efficiency, improved indoor environment and sustainable buildings are driving investment in both new construction and renovation. With our technical expertise, local presence and dedicated employees, Systemair is well positioned to seize the opportunities on offer.
Robert Larsson
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.
