Gränges’ Q3 interim report 2026: Record earnings and improved cash flow

Third quarter 2026

• Sales volume increased by 1 percent to 154.5 ktonnes (153.4).
• Adjusted operating profit increased to SEK 596 million (398) and adjusted operating profit per tonne increased to 3.9 kSEK (2.6).
• Profit for the period increased to SEK 388 million (253) and diluted earnings per share increased to SEK 3.63 (2.27).
• Operating cash flow increased to SEK 396 million (317).
• Return on capital employed increased to 12.6 percent (10.8 on September 30, 2025).
• Financial net debt was 1.7x adjusted EBITDA (1.6x on September 30, 2025).
• Total GHG emission intensity (scope 1+2+3) decreased to 5.9 tonnes CO2e/tonne (6.5), and the share of sourced recycled aluminium increased to 48.2 percent (45.1).

January–September 2026

• Sales volume increased by 4 percent to 481.4 ktonnes (464.2).
• Adjusted operating profit increased to SEK 1,635 million (1,242) and adjusted operating profit per tonne increased to 3.4 kSEK (2.7).
• Profit for the period increased to SEK 1,114 million (807) and diluted earnings per share increased to SEK 10.32 (7.22).
• Operating cash flow was SEK -92 million (783).
• Total GHG emission intensity (scope 1+2+3) decreased to 5.9 tonnes CO2e/tonne (6.8), and the share of sourced recycled aluminium increased to 47.9 percent (44.4).

Comments by Gränges’ CEO Jörgen Rosengren: Another record quarter

Gränges continued to gain market share across several end markets, securing our eleventh consecutive quarter of year-on-year sales volume growth.

In Gränges Americas, continued market share gains and a recovery in the climate control market contributed to strong sales volume growth. Continued wage and other inflation was more than offset by excellent operational performance combined with improved pricing and recycling. Together with good growth, these effects resulted in record earnings. In Gränges Europe, market demand remained weak, but continued market share gains supported sales volume growth. Higher sales volume, improved pricing and positive market scrap spreads supported earnings growth. This was partly offset by negative currency effects and cost increases. In Gränges Asia, operations gradually recovered from the effects of the fire at our Shandong facility in May. Repairs are ongoing and expected to be completed around year-end. The capacity constraints primarily impacted lower-margin industrial products, while market share gains and new business supported continued growth in automotive applications. In parallel, we continue our work to strengthen the long-term performance of the business.

Gränges as a whole faced negative currency effects, continued price pressure in Asia and cost increases across all regions. However, these effects were more than offset by favorable mix, improved pricing, increased recycling, and improved market scrap spreads. As a result, adjusted operating profit increased by 50 percent to SEK 596 million, marking a new record for Gränges in a single quarter. In addition, operating cash flow increased by 25 percent to SEK 396 million. The operating cash flow increased, contributing to improved leverage.

We also continued to make progress on sustainability, as evidenced by reduced greenhouse gas emission intensity during the quarter.

Fourth-quarter outlook
Market demand remains difficult to predict, but we saw a strong third quarter and have good momentum going into the fourth.

In Asia, we continue to operate with reduced capacity following the fire in the Shandong facility. In the fourth quarter we expect a year-on-year reduction of approximately 10 ktonnes of low-margin industrial products while we continue to target growth in automotive.

For the other regions, we expect fourth-quarter sales volume to grow at a mid single-digit rate compared to the fourth quarter last year, driven by continued market share gains. We aim to offset cost increases through price and productivity. We expect continued tailwind from improved market scrap spreads and relatively small foreign exchange rate effects.

All in all, we took a big step forward in our long-term plan during the third quarter. I would like to thank all colleagues across Gränges for their dedication and hard work, and for contributing to our company’s strong development.

Jörgen Rosengren, President and CEO
 
Webcasted presentation
CEO Jörgen Rosengren and CFO Oskar Hellström will present Gränges’ Q3 interim report 2026 at a webcasted conference call Thursday October 22, 2026, 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.