Lammhults Design Group (LAMM) Q3 2025 earnings summary

Executive summary

• Sales increased by 8.9% in Q3 2025 year-over-year to 205.4 MSEK, with growth in both Office Interiors and Library Interiors.

• Adjusted operating profit rose to 6.9 MSEK (up from 4.4 MSEK), driven by improved margins and operational efficiency.

• Order intake declined by 15.5% compared to Q3 2024, reflecting a weak market and delayed customer projects.

• Ongoing restructuring, transformation, and efficiency programs contributed to gradual profit improvement.

• Continued focus on growth and achieving an EBIT margin of 8–10% by 2026, with transformation expected to yield annual savings of 30–40 MSEK after full implementation by Q1 2026.

Financial highlights

• Revenue for Q3 2025 was 205.4 MSEK, up from 188.7 MSEK in Q3 2024.

• Adjusted gross margin increased by 1.1 percentage points to 37.3%.

• Adjusted operating margin improved to 3.4% from 2.3% year-over-year.

• Net margin for the quarter was 2.2%.

• Free cash flow including leasing for the nine months was -0.1 MSEK, a marked improvement from -32.1 MSEK last year.

Outlook and guidance

• Targeting an EBIT margin of 8–10% by 2026, with ongoing transformation expected to deliver significant annual savings.

• Continued investments in digitalization, product development, and market positioning to support future growth.

• Management expects gradual improvement in profitability despite market challenges.