Alleima (ALLEI) Q2 2026 earnings summary

Executive summary

• Organic order intake grew 3% year-over-year, reversing a prior decline, driven by strong performance in umbilicals, medical, industrial heating, and aerospace, with a major umbilical tubing order boosting backlog.

• Revenues grew organically by 2% year-over-year to SEK 4,896 million, with notable contributions from Kanthal and umbilical business, partially offset by weaker short-cycle tube business and OCTG.

• Adjusted EBIT rose to SEK 519 million (margin 10.6%), up from SEK 454 million (9.5%) last year, supported by cost-saving measures and positive metal price effects.

• Market conditions remain mixed and uncertain, especially due to geopolitical factors in the Middle East and weak European demand.

• Tube Mill 2026 inaugurated, expanding nuclear steam generator tube capacity by 60%.

Financial highlights

• Rolling 12-month order intake reached SEK 18.6 billion, up 3% organically.

• Quarterly revenues were SEK 4,896 million, up 2% organically; book-to-bill ratio improved to 102%.

• Adjusted EPS for the quarter was SEK 1.57 (diluted), up from 1.35 year-over-year.

• Free operating cash flow was SEK 330 million.

• Net debt/equity ratio at -0.02x, indicating a net cash position.

Outlook and guidance

• Q3 outlook impacted by new Middle East tensions, continued weak tube business in Europe and North America, and signs of slowdown in APAC, especially China.

• Ramp-up costs for the new SGT mill will impact Q3 earnings (approx. SEK 20 million per quarter until invoicing starts in Q4).

• Full-year CapEx guidance maintained at SEK 1.1 billion, with growth projects in Sandviken, Japan, and Malaysia.

• Normalized tax rate for 2026 expected at 23%-25%.

• Currency effects expected to be neutral for Q3 2026 EBIT; metal price effect estimated at SEK 100 million.