Gränges (GRNG) investor relations material

Executive summary

• Q3 adjusted operating profit reached a record SEK 596 million, up 49.8% YoY; sales volume rose 0.7% to 154.5 ktonnes, extending growth to an 11th consecutive quarter.

• Market-share gains, pricing, mix and recycling supported results despite weak demand, cost inflation, FX headwinds and reduced Asia capacity after the Shandong fire.

• Operating cash flow was SEK 396 million, and financial net debt declined to SEK 4,987 million; sustainability metrics also improved.

Financial highlights

• Net sales rose 36.8% to SEK 9,485 million, driven by higher aluminium and fabrication prices; FX added SEK 194 million.

• Adjusted operating profit increased 49.8% to SEK 596 million; reported operating profit was SEK 546 million, including SEK 49 million of items affecting comparability.

• Profit for the period rose 53.0% to SEK 388 million; diluted EPS increased to SEK 3.63 from SEK 2.27.

• Q3 operating cash flow was SEK 396 million versus SEK 317 million; capital expenditure was SEK 183 million.

• Jan–Sep net sales rose 29.6% to SEK 27,403 million and adjusted operating profit increased 31.7% to SEK 1,635 million; operating cash flow was negative SEK 92 million.

Outlook and guidance

• Q4 volume in the Americas and Europe is expected to grow mid-single digits YoY, mainly through market-share gains; demand remains difficult to predict.

• Asia Q4 volume is expected to be ~10 ktonnes lower YoY, mainly in low-margin industrial products; Shandong repairs are targeted for year-end, with ramp-up planned in Q1 2027.

• Improved scrap spreads are expected to remain a tailwind; Q4 benefit is forecast at ~SEK 30 million YoY if spreads hold, with limited currency effects.

• Pricing, recycling and productivity initiatives are intended to offset cost increases; additional Shandong tolling and transportation costs are expected near SEK 50 million, similar to Q3.