Trelleborg (TREL) Q2 2025 earnings summary

Executive summary

• Net sales declined 2% year-over-year to SEK 8,551 million in Q2 2025, with organic sales down 1% and negative currency effects of 7%.

• EBITA/EBITDA margin improved to 18.6%–18.7% from 18.4% last year, near record levels, despite lower volumes.

• Cash flow was SEK 1,000 million, slightly below last year, with cash conversion at 87% and strong working capital management.

• Several bolt-on acquisitions were completed, including National Gummi, Sico, Aero-Plastics, and NuFlow, strengthening positions in key regions and segments.

• Board continued share buybacks post-Q2, with 4.18 million Series B shares repurchased in H1 2025.

Financial highlights

• EBITA/EBITDA excluding items affecting comparability was SEK 1,587 million, down 1% year-over-year; margin rose to 18.6%.

• Earnings per share excluding items affecting comparability fell 4% to SEK 4.31.

• Net profit from continuing operations was SEK 923 million, a 7% decrease year-over-year.

• Net debt ended at SEK 8,937 million; net debt/EBITDA at 1.2; debt/equity ratio at 24%.

• Return on capital employed was 11.6%, down from 12.7% last year, mainly due to recent acquisitions.

Outlook and guidance

• Demand in Q3 2025 expected to be somewhat higher than Q2, with low single-digit organic growth anticipated.

• Automotive is expected to remain negative but less severe than Q2; other industrial segments are set to improve.

• CapEx guidance unchanged at SEK 1.65 billion; restructuring costs increased to SEK 500 million.

• Geopolitical uncertainty continues to impact the outlook.

• Margin target of 20% remains in range if core industrial markets improve in H2.