Gränges (GRNG) Q2 2025 earnings summary

Executive summary

• Sales volume grew 22% year-over-year in Q2 2025, driven by market share gains and the ramp-up in Asia, especially Shandong.

• Adjusted operating profit reached SEK 436 million, down from SEK 471 million last year, mainly due to currency headwinds and higher scrap costs.

• Strong operating cash flow increased 49% to SEK 445 million, supporting a reduction in net debt.

• Record-high recycling volumes and all-time-low carbon intensity achieved, with external recognition for sustainability leadership.

Financial highlights

• Net sales increased 13.5% to SEK 6,974 million in Q2 2025, lagging volume growth due to currency effects and lower average fabrication price in Shandong.

• Adjusted operating profit per tonne fell to SEK 2,700 from SEK 3,600; excluding Shandong and currency, would have been SEK 3,500.

• Profit for the period was SEK 293 million; EPS was SEK 2.62, both down year-over-year.

• Operating cash flow was SEK 445 million despite seasonal working capital build-up and higher metal prices.

• Return on capital employed at 11.2%, down from 11.9% year-over-year.

Outlook and guidance

• Continued strong volume growth expected in Q3, with Shandong contributing 20,000–25,000 tons above break-even.

• Excluding Shandong, anticipate mid- to high single-digit sales volume growth in Q3 2025 over Q3 2024.

• Plan to recover delayed European volumes in Q3, with growth in Europe expected if operational issues are resolved.

• Ongoing focus on offsetting external pressures with volume, price, and productivity improvements; negative currency effects expected to persist.

• Capex for capacity expansion to decrease in H2 2025, supporting stronger operational cash flow.