Gränges (GRNG) Q3 2025 earnings summary

Executive summary

• Achieved 25% year-over-year sales volume growth in Q3 2025, driven by significant market share gains across all regions and customer segments, offsetting weak demand in HVAC and automotive sectors.

• Growth was supported by volume, price increases, and productivity improvements, countering higher aluminium scrap costs and weak demand.

• Integration and ramp-up of the Shandong facility in Asia enabled 88–95% volume growth in the region, contributing substantially to group performance.

• Strong operating cash flow and improved working capital control, with modest CapEx following the conclusion of a multi-year expansion program.

• Sustainability performance improved, with a 5% reduction in carbon emissions intensity and increased use of low-carbon aluminium.

Financial highlights

• Q3 2025 sales volume reached 153,000–153,400 tonnes (+25%); net sales increased 20.6–21% to SEK 6,933 million.

• Adjusted operating profit was SEK 398 million, down 5–5.3% year-over-year, with a margin of 2.6 KSEK/tonne.

• Profit for the period was SEK 253 million; EPS was SEK 2.27.

• Operating cash flow was SEK 317 million, up 15–15.1%, despite a SEK 200 million working capital build-up from higher aluminum prices.

• Return on capital employed (ROCE) was 10.8%; net debt/EBITDA at 1.6x, within the 1-2x target range.

Outlook and guidance

• Expect continued market share gains and strong sales volume growth in Q4 2025, especially in Asia, to offset ongoing weakness in HVAC and automotive markets.

• Asia is expected to maintain or exceed a 50,000-ton quarterly run rate; high single-digit sales volume growth anticipated for Europe and Americas combined.

• Focus on offsetting negative currency and cost effects with volume, price, and productivity improvements.

• CapEx for capacity expansion guided to approximately zero for 2026 and 2027, supporting higher cash flow conversion.