Trelleborg (TREL) Pre-Close Call summary

Executive summary

• Q4 demand trends expected to be on par with Q3, with organic growth supported by several business areas but impacted by seasonality and project timing.

• December figures are not yet available, and the longer Christmas period introduces additional uncertainty for Q4 results.

• No acquisitions made during the quarter; business remains focused on organic development.

Trading performance and revenue trends

• Group organic growth in Q3 was 4%, but underlying trend was closer to 3% after adjusting for one-off Medical Solutions sales.

• Industrial Solutions saw 2% organic growth in Q3, but Q4 is expected to be flat due to project delivery timing and holiday impacts.

• Medical Solutions had 13% organic growth in Q3 (boosted by a startup), with underlying growth at 5-6%; Q4 expected to be softer.

• Sealing Solutions posted 5% organic growth in Q3, with Q4 growth likely below that due to holidays and continued automotive weakness.

Profitability and margins

• Industrial Solutions margin was 15.2% in Q3, expected to improve slightly in Q4 due to seasonality and mix.

• Sealing Solutions margin was 20.7% in Q3, expected to remain above 20% in Q4 but slightly lower due to seasonality.

• Group margin was 18.1% in Q3, with expectations to match or improve in Q4.

• Long-term ambition remains to add 0.5 percentage points to yearly margin.