SinterCast (SINT) ABGSC Investor Days summary

Business overview and technology

• Develops software and hardware for producing Compacted Graphite Cast Iron (CGI), enabling lighter, stronger, and more efficient engine blocks for vehicles.

• CGI adoption leads to 5–10% more power and torque, and 5–8% better fuel efficiency, especially in heavy-duty engines.

• Operates a royalty-based business model, with 90–95% recurring revenue from production fees and consumables.

• Main market segments include heavy-duty commercial vehicles, pickup trucks, and industrial applications, with Ford and TRATON GROUP as key customers.

Market trends and growth drivers

• Commercial vehicle engines represent about 50% of production, with stable growth historically but a recent dip due to market headwinds in 2025.

• Recovery is underway, with forecasts to reach 5 million Engine Equivalents in 2027, 6 million by 2029, and 8 million by 2031.

• Recent uptick in commercial vehicle sales: Q1 2026 saw 13% growth in Europe and 90% in North America.

• Pre-buy effect ahead of 2027 EPA emissions rules in the US is boosting order books for major OEMs.

Financial performance and efficiency

• Maintained high resilience with 70% gross margin and over 30% operating margin, even during downturns.

• Targets 40% operating margin by 2028, supported by stable costs and cost-saving initiatives.

• Achieved SEK 4.3 million revenue and SEK 1.3 million profit per employee in 2025, reflecting high efficiency.