Trelleborg (TREL) Pre-Close Call summary

Executive summary

• Guidance for Q2 remains unchanged from Q1, expecting demand trends to develop sideways amid significant uncertainty from tariffs and geopolitical events.

• Organic growth in Q1 was +1%, with Q2 expected to be similar, though April and May were below this level; June showed signs of recovery.

• No major changes in group-level margins anticipated compared to the previous quarter.

Trading performance and revenue trends

• April demand was slow due to customer hesitance and the timing of Easter; May remained subdued, but June showed improvement.

• Industrial solutions experienced mixed results, with general industry, manufacturing, and automotive under pressure, while water infrastructure and marine solutions performed better.

• Medical solutions saw favorable growth in Europe, weaker performance in the US, and strong biopharma market growth; organic growth in Q2 is expected to come from pricing.

• Sealing solutions maintained flat organic development, with Asia performing well and Europe and North America more subdued.

Profitability and margins

• No significant changes in profitability margins are expected across business areas compared to the previous quarter, despite negative production volumes.

• Sealing solutions are targeting to maintain a 20% margin, with historical Q2 seasonality offset by the Easter impact.