Trelleborg (TREL) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered a record EBITA margin of 18.4% and strong cash flow, with organic sales growth of 1% despite a 5% sales decline due to significant negative currency effects and delayed project deliveries in Industrial Solutions.

• Order intake and backlog remained robust across segments, particularly in LNG, construction, aerospace, and life science, while the automotive segment was sluggish.

• Six acquisitions in 2025 and one in early 2026 expanded capabilities, with new manufacturing facilities opened in Vietnam and Costa Rica.

• Sustainability initiatives led to a 28% reduction in Scope 1 and 2 CO₂ emissions and 98% renewable electricity usage.

• Continued share buybacks and a proposed dividend increase to SEK 8.00 per share, pending AGM approval.

Financial highlights

• Q4 2025 net sales were SEK 8,380 million, down 5% year-over-year, with a 9% negative currency impact; full-year sales were SEK 34.7 billion, flat year-over-year.

• EBITA (excluding items affecting comparability) was SEK 1,542 million in Q4, down 3%, but up 6% at constant FX; full-year EBITA was SEK 6,286 million, up 2%, with a record full-year margin of 18.3%.

• Earnings per share (excl. items) rose 1% to SEK 4.30 in Q4 and 2% to SEK 17.09 for the year.

• Operating cash flow in Q4 was SEK 1,726 million, up 3%; full-year cash flow was SEK 5,288 million, with a cash conversion ratio of 93%.

• Net profit for Q4 was SEK 836 million, down 10% year-over-year.

Outlook and guidance

• Demand in Q1 2026 is expected to be similar to Q4 2025, adjusted for seasonality, with low single-digit organic growth and continued uncertainty due to geopolitical factors.

• Full-year 2026 guidance: CapEx SEK 1.45 billion, restructuring costs SEK 375 million, amortization of intangibles SEK 650 million, tax rate 25%.

• Anticipate a stronger second half of 2026 as project deliveries ramp up and order book converts to sales.

• Continued share buybacks at SEK 500 million per quarter and focus on bolt-on acquisitions.