LapWall - Profitability remains strong

LapWall's fourth quarter performance was solid, despite net sales falling 13% y/y. The combination of operating leverage and the company's fixed cost discipline continued to support the profitability. Dividend proposal beat our estimates at EUR 0.18 per share (Evli est. EUR 0.11 per share).

  • Net sales in Q4 were EUR 10.5 (EUR 12.1m Q4/23, EUR 11.1m Evli est.), falling 13.3% y/y.
  • Demand for roof element products fell slightly in H2 while wall elements business gained some traction during the second half.
  • EBITA was EUR 1.3m (EUR 1.0m Q4/23, EUR 1.2m Evli est.), at a margin of 12.3 % (8.4%)
  • The main drivers behind the improved profitability in a tough operating environment were efficient production, improved capacity utilization and fixed costs discipline.
  • Backlog fell 27.9% y/y to EUR 12.3m, down from EUR 17.1m at the end of Q4/23. 
  • Last year's backlog included one larger order worth EUR 6.5 million. 
  • LapWall updated its strategy and long-term financial targets yesterday.
  • Previously, the company targeted net sales of over EUR 70m by 2026 and EBITA margin of 12-15% on the medium-term.
  • The new targets aim towards net sales of EUR 100m by the end of 2030 and EBITA margin of 15-20%.
  • Our current estimates sit below the company’s new targets as we forecast net sales of EUR 85m for 2030 with EBITA margin of 12.5%.
  • We see the new targets realistic yet reaching the targets would require higher capacity utilization than we currently estimate. 
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