CEO’s comments
2025-08-28
Quarter 1 2025-26
Our first quarter of the 2025/26 financial year began with organic growth of 5.7 percent. With the exception of Eastern Europe, all regions showed volume growth. We are pleased to report that the previous positive trend in the Nordic region and parts of Western Europe has continued. Previous supply disruptions in India arising from the relocation to larger production facilities have come to an end, and the region is again showing good growth. The gross margin continued to firm up during the quarter to 36.4 percent (36.0). The adjusted operating margin decreased slightly to 9.3 percent (9.8).

The market
Organic growth for the quarter amounted to 5.7 percent. Translation e0ects, mainly through a strengthened Swedish krona, a0ected sales by -6.3 percent, which led to sales including currency e0ects decreasing by 0.6 percent during the quarter. The Nordic region and Western Europe maintained their positive trend, with volume growth. However, the trend in Eastern Europe is more volatile, leading to slightly negative organic growth there during the period. In North America, signals remain mixed in the face of uncertainty about potential trade barriers. The region made up of the Middle East, Asia, Australia and Africa, showed negative organic growth in the previous quarter as a result of supply disruptions arising from the relocation to larger production premises in Hyderabad. Production has returned to normal and the region is showing good organic growth of 14.3 percent.
Acquisitions & investments
In July 2025, Systemair signed an agreement to acquire NADI Airtechnics Ltd, a leading Indian manufacturer of industrial fans. We have great confidence in this acquisition and believe that it provides good opportunities for attractive synergies and continued growth in India. NADI's products fit well 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.
We are continuing to invest for the long term to strengthen our delivery capacity and product development. Alongside the recently completed expansion of capacity in Hyderabad, we are also investing in tripling production capacity at our factory in Saudi Arabia. The new facility will be operational in October 2025 and 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.
Sustainability
Our energy-eIcient products contribute significantly to energy savings and improved indoor air quality, and thus o0er major future business potential. 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 e0orts 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
Several regions are reporting rising demand. However, the market situation is characterised by uncertainty, and a number of external factors may a0ect demand in the short term. We anticipate more positive market developments as market interest rates are lowered and as inflation targets are met.
With our 26 well-invested production facilities in 18 countries and the most comprehensive product range in energy-eIcient ventilation on the market, we are well positioned for continued long-term and profitable growth.
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.