First quarter 2025

• Sales volume increased by 24 percent to 151.6 ktonnes (122.0).
• Adjusted operating profit increased to SEK 409 million (356) and adjusted operating profit per tonne was 2.7 kSEK (2.9).
• Profit for the period increased to SEK 261 million (237) and diluted earnings per share increased to SEK 2.34 (2.23).
• Operating cash flow was SEK 21 million (-9).
• Return on capital employed was 11.7 percent (11.9 on December 31, 2024).
• Financial net debt was 1.7x adjusted EBITDA (1.8x on December 31, 2024).
• Excluding Shandong, total carbon emissions intensity (scope 1+2+3) was 7.6 tonnes CO2e/tonne (7.4), and the share of sourced recycled aluminium was 43.5 percent (45.5).
• New operating segments established – Gränges Americas, Gränges Asia, and Gränges Europe.

Comments by Gränges’ CEO Jörgen Rosengren: Profitable growth in a turbulent environment

In the first quarter, Gränges delivered strong volume and profit growth in challenging external conditions. Market demand was good in HVAC and stable in Specialty packaging and Other niches, while conditions in Automotive remained soft. Thanks to increased market share, good operational performance and the newly gained business in Asia, we grew sales volume by 24 percent year-on-year.

All three regions contributed to sales volume growth and increased earnings, which was very encouraging. In Gränges Americas, sales volume grew by 8 percent, supported by good demand and continued market share gains. Profitability improved on the back of higher sales volume, increased productivity, and improved mix. In Gränges Asia, sales volume increased by an impressive 81 percent, driven by the newly gained business and continued market share gains for applications like automotive heat exchangers, battery casing, and cooling plates. The integration of our new plant in Shandong progressed well and also enabled new business in Other niches. Higher sales volume and productivity more than offset price pressure. In Gränges Europe, we grew sales volume by 4 percent despite a soft market, thanks to new business wins in material for electric vehicles and Other niches. Along with continued productivity improvements, this helped offset price pressure.

In total, adjusted operating profit increased by 15 percent to SEK 409 million, our best first-quarter result so far. Operating cash flow was positive despite seasonal build-up of working capital and some remaining expenditure in the expansion programs we are finalizing.

All in all, the first quarter once again showed the strength of our strategy and ability to execute.

Building a leader
In 2024, we completed the first phase of our Navigate plan, finalizing our major capacity investments as a strong foundation for sustainable growth. We’re now entering the second phase: building a leader. Our global team is focused on increasing utilization, optimizing price and mix, and further improving productivity. As we have ample room to grow into our 800 ktonnes capacity, we can execute this plan without major expansion projects and therefore with lower capital expenditure and better cash flow than previously. The plan centers on ensuring safety, engaging our people and continuing our important sustainability journey to net-zero by 2040 together with our customers and partners.

Impact of the trade tariffs
The dramatically increased global trade tariffs create uncertainty. However, the direct impact on our business is limited. Our regionalized production setup close to our customers makes Gränges resilient. Although increasing tariffs on aluminium imports into the US drive up our raw material purchase price there, this cost is passed on using automatic price formulas in accordance with industry practice.

Over time, tariffs could cause inflationary pressure and weaken consumer and industrial demand. If that happens, we believe the increased flexibility we have created over the past years will help us cope. We will focus on what we can control: market share gain, productivity improvement, and cost control. That Gränges has no major investment planned also contributes to flexibility.

Continued strong volume growth expected
We currently expect good volume growth in the second quarter with the help of market share gains. We aim to retain the approximately 20–25 ktonnes of additional quarterly sales volume in Shandong. For the other units, we currently expect mid-single-digit volume growth. Just as before, we intend to offset price pressure and cost increases with growth and productivity improvement, but expect a negative currency translation effect.

We continue to deliver strong results. That comes from having a great team fully engaged in executing a clear plan. I want to thank all Gränges colleagues for your dedication. Together, we’ve set out to be a leader in our industry and we’re well on our way. We are very proud of our performance in the first quarter. Hopefully, 2025 will be our fourth year in a row with stable performance in choppy waters.

Jörgen Rosengren, President and CEO

Webcasted presentation
CEO Jörgen Rosengren and CFO Oskar Hellström will present Gränges’ interim report for the period January-March 2025 at a webcasted conference call Friday April 25, 2025, at 10.00 CEST.

Join the live webcast here. To participate in the Q&A following the presentation, please register here. Upon registration, phone numbers and a conference ID to access the call will be provided. Please dial in a few minutes before the start of the webcast. The presentation will be in English.