CEO statement

Another successful year for Lagercrantz 

Lagercrantz sums up another successful year 2024/25. We are pleased to note that our profit (EBT) increased by 16% to MSEK 1,298 with a slightly increasing growth rate at the end of the year. The operating margin (EBITA) was a good 17.5% and earnings per share increased by 16% to SEK 4.93, a new all-time high for the 15th consecutive year. In addition, cash flow from operating activities totalled MSEK 1,322 and we have completed seven exciting acquisitions, which add total annual revenue of approximately MSEK 825 with good profitability.

An effective business concept, well executed, behind the success

Behind Lagercrantz Group’s strong performance, over many years stand our business concept as well as the corporate culture and the working methods that we consistently apply. The business concept is to acquire small and medium-sized leading technology companies and get them to grow and develop in a positive way – a so-called “buy-and-build” strategy. We consistently invest generated cash flows in new, well-functioning businesses, which over the years has created self-financed high growth and good returns. We thus benefit from our two growth engines: both to grow organically and improve our existing businesses, and to also grow through acquisitions. The goal is to grow the total profit by at least 15% per year, which corresponds to doubling our profit every fifth year, where about one third should be generated through organic growth and two thirds through acquisitions. We have essentially succeeded with this over the past 15 years, and so also in 2024/25.

However, growing earnings and profitability organically over a long period is not a trivial matter. For this reason, operationally, the organisational model built around decentralisation and management by objectives, simplicity, responsibility and freedom, is well established. We apply it in a disciplined manner, where each subsidiary management works towards profit and working capital targets, supported by Lagercrantz as an active and engaged owner. Decentralisation and management by objectives encourage us to find opportunities for growth and development at all levels. 
 

The acquisition strategy is another important reason for our success. In recent years, we have further increased the divisions’ capacity for acquisitions, which has had the desired effect in the number and quality of the acquisition opportunities we evaluate. We also see that Lagercrantz’s approach to further developing owner-led technology companies in particular, is increasingly attracting family business owners and entrepreneurs. They see our success with previous acquisitions, which creates confidence in our governance concept, where we are successfully developing the life work of many family businesses into the future and where we have no exit horizon. During the year, we completed a total of seven acquisitions, where several were slightly larger than the previous average, for example CP Cases, Mastsystem and VLT. 

It is worth noting that we have also successfully expanded our geographical reach in recent years. We are involving more employees in acquisition-related activities and we are now established with several newly acquired companies in the UK, and we are also growing in the Netherlands, Germany and in the US. We are growing in existing technology areas, but we are also looking at new areas, which among other things, has resulted in a marine cluster of companies within the International division and a water cluster within the Niche Products division.

I would also like to take this opportunity to thank all employees, whose commitment is a crucial factor for Lagercrantz. The contribution of each company and employee to the Group is important and I am very grateful for all the hard work, fine efforts and initiatives that are taking place in the Group’s 80 or so businesses, and at a divisional and Group level.

Outlook

Ahead of the financial year 2025/26, I am optimistic despite the geopolitical uncertainty. The spring’s discussions around trade barriers are creating uncertainty, but despite this, the situation remains stable and positive for most of the Group’s businesses. Lagercrantz has a strong financial position, which creates resilience and the scope for further acquisitions. We will continue on our chosen path of building a strong technology group with leading positions in expansive niches. The Group’s broad exposure with niche B2B technology companies in attractive and sustainable sectors, such as electrification, infrastructure and security & safety solutions, provides both stability and good growth opportunities. 

July 2025

Jörgen Wigh

President and CEO