Trelleborg (TREL) investor relations material

Executive summary

• Net sales declined 2% year-over-year to SEK 8.5 billion, with organic sales down 1% and negative FX impacts of 7%; M&A contributed to growth.

• EBITA margin improved to 18.6–18.7%, near record levels, despite lower volumes and negative FX of SEK 104 million.

• Operating cash flow was SEK 1 billion, slightly below last year, with cash conversion at 87%.

• Multiple bolt-on acquisitions completed, including National Gummi, Sico, Aero-Plastics, and others, strengthening positions in energy, aerospace, and specialty markets.

• Share buybacks continued at a reduced pace, maintaining flexibility for acquisitions and investments.

Financial highlights

• EBITA reached SEK 1,587 million, with margin at 18.6–18.7%, despite negative FX and lower volumes.

• EPS excluding items affecting comparability was 4.31, down 4% year-over-year, mainly due to higher financial net and FX impacts.

• Net profit from continuing operations was SEK 923 million, a 7% decrease year-over-year.

• Net debt ended at SEK 9.37 billion, with a debt/equity ratio of 24% and net debt/EBITDA at 1.2.

• Return on capital employed was 11.6%, down from 12.7% last year, reflecting recent acquisitions.

Outlook and guidance

• Q3 demand expected to be somewhat higher than Q2, with low single-digit organic growth anticipated.

• Automotive is expected to remain negative but less severe; core industrial segments and geographies show improving trends.

• Margin target of 20% remains in range if core industrial volumes improve in H2.

• CapEx guidance unchanged at SEK 1.65 billion; restructuring costs increased to SEK 500 million.

• Geopolitical uncertainty and global trade barriers continue to impact the outlook.