SinterCast (SINT) ABGSC Investor Days summary

Company Overview and Technology

• Specializes in process control for compacted graphite iron (CGI), enabling stronger, lighter engine components with up to 10% weight reduction and 5–10% more power and torque.

• CGI adoption leads to 5–8% fuel efficiency gains and significant CO2 savings, especially in large vehicles.

• Business model is royalty-based, with 90–95% recurring revenue from production fees, consumables, and equipment.

• Main markets are commercial vehicles and North American pickup trucks, with stable industrial applications.

Market Trends and Growth Outlook

• 50% of production is for commercial trucks, with most future growth expected in this segment.

• Engine equivalents have grown since 2008, with a 10-year CAGR of 4.4% and 15-year CAGR of 9%.

• Double-digit CAGR is targeted through 2030, with production expected to reach 5 million units in 2027 and 6 million in 2029.

• Confirmed high-volume engine programs include new launches from FAW China, MAN, Scania, and International, with SOPs from 2025 to 2027.

• Recent production drop linked to market slowdown and delayed regulatory changes in the US, but OEM order books are increasing, signaling sales growth in 3–6 months.

Financial Performance and Targets

• Revenue has grown at a 5% CAGR over the past decade, with a target of double-digit CAGR through 2030.

• High operating margin (31.9% in 2023), aiming for over 40% by 2028.

• Revenue per employee is SEK 4.5 million, with profit per employee exceeding SEK 1 million.

• Over 100 million tonnes of cumulative CO2 savings are projected by 2028.