Trelleborg (TREL) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly sales of SEK 8,866M, up 8% year-over-year, with all business areas performing in line with expectations and highest-ever EBITA of SEK 1,616M, margin 18.2%.

• Organic sales grew 1%, M&A contributed 6%, and currency effects added 1%.

• Operating cash flow increased 14% to SEK 821M, with cash conversion at 90% rolling 12 months.

• Several bolt-on acquisitions completed, including CRC, NuFlow, Aero-Plastics, and National Gummi, strengthening positions in key markets.

• All business areas performed in line with expectations despite macroeconomic uncertainty.

Financial highlights

• EBITA rose 8% to SEK 1,616M, with a margin of 18.2%; EBITDA reached SEK 1,982M.

• Earnings per share (excluding items affecting comparability) increased 1% to SEK 4.28; reported EPS was SEK 4.08.

• Net profit from continuing operations was SEK 941M, down from SEK 980M in Q1 2024.

• Cash flow for the quarter was SEK 821M, with cash conversion at 90%; free cash flow was SEK 315M.

• Net sales increased 8% to SEK 8.8 billion compared to Q1 2024.

Outlook and guidance

• Demand for Q2 2025 expected to remain on par with Q1, adjusted for seasonality, but outlook carries high uncertainty due to geopolitical and trade factors.

• No major changes in customer behavior observed in early Q2; order intake remains solid.

• CapEx guidance for 2025 unchanged at SEK 1.65 billion; restructuring costs expected at SEK 300 million; amortization ~SEK 650M; tax rate ~25%.