Trelleborg (TREL) Pre-close call summary

Executive summary

• Organic sales growth for Q3 is expected at approximately +5%, lower than Q2's +8% but sequentially an improvement given tougher year-on-year comparisons.

• Demand remains solid across business areas, with pent-up project sales anticipated to be more pronounced in Q4.

• Margin performance is influenced by typical seasonality, with some business areas maintaining strong profitability.

Trading performance and revenue trends

• Trelleborg Industrial Solutions expects around 4% organic growth in Q3, similar to Q2, driven by manufacturing, automation, aerospace, energy, and renewables.

• Building and construction, as well as automotive, remain weak, though an acquisition (Gomet) offsets some automotive decline.

• Trelleborg Medical Solutions faces a tough comparison due to a one-off in Q3 2025, expecting flat or slightly negative organic sales, but sequentially stable or better.

• Trelleborg Sealing Solutions continues strong growth, especially in aerospace and automotive (damping solutions), with robust sales in Asia and America.

Profitability and margins

• Trelleborg Industrial Solutions and Medical Solutions expect a typical seasonal margin drop from Q2 to Q3 by up to one percentage point, with recovery anticipated in Q4.

• Sealing Solutions maintains a strong margin (~22.5%), with no expected sequential drop in Q3 due to operational efficiencies and volume growth.

• Group EBITDA margin in Q3 will reflect seasonally weaker margins in Industrial and Medical, but Sealing Solutions remains stable.