Gränges (GRNG) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter results in Q1 2025, with 24% sales volume growth and 15% increase in adjusted EBIT, driven by new business in Asia, Shandong facility ramp-up, and market share gains across all regions and customer segments.

• All regions and customer groups contributed to growth and improved results, with positive operating cash flow despite seasonal working capital build-up.

• Integration and ramp-up of the Shandong facility in Asia enabled significant volume growth and contributed to a balanced performance across regions.

Financial highlights

• Sales volume grew 24% year-over-year to 151.6–152,000 tons, with net sales up 33% to SEK 7,233 million, supported by higher aluminum prices and currency effects.

• Adjusted operating profit rose to SEK 409 million (up 14.7–15%), with profit for the period up 10% to SEK 261 million and EPS at SEK 2.34.

• Operating cash flow improved to SEK 21 million; return on capital employed was 11.7%.

• Net debt decreased to SEK 4.2 billion, with a net debt/EBITDA ratio of 1.7x, within the target range.

• Net sales by region: Americas SEK 3,308m (+25%), Asia SEK 1,915m (+70%), Europe SEK 2,232m (+16%).

Outlook and guidance

• Expects strong growth in Q2 2025, with stable customer demand, retention of market share gains, and continued ramp-up of Shandong volumes at break-even profitability.

• Guides for mid-single digit sales volume growth in Q2 and aims to offset price and cost pressures through volume growth and productivity improvements.

• Anticipates some negative currency translation effects in Q2.

• No major expansion projects planned, supporting lower capex and improved cash flow.