Positive results despite market headwinds
 
First Quarter 2025
·       Revenue for Period: SEK 27.1 million (SEK 32.1 million)
·       Operating Result: SEK 10.2 million (SEK 7.4 million), yielding 37.7% (23.0%) operating margin
·       Earnings per Share: SEK 1.08 per share (SEK 0.87 per share)
·       Cashflow from Operations: SEK 12.2 million (SEK 15.2 million)
·       Start of series production for heavy duty commercial vehicles at First Automobile Works (FAW), China
·       Start of series production for heavy duty commercial vehicles for MAN, Germany
·       First installation in India secured with Saroj Group; installation targeted for second quarter
·       Installed Base: 57 (57) installations 26 (25) fully automated systems, 23 (25) mini-systems and eight (seven) tracking systems in 13 (13) countries

CEO Message
Positive results despite market headwinds; improved outlook ahead
For the second consecutive quarter, annualised series production finished at 3.1 million Engine Equivalents, due to the combined effects of the stoppage of a high volume programme in September 2024, softening of commercial vehicle sales since mid-2024, and heightened global trading uncertainties.  Revenue for the period amounted to SEK 27.1 million (SEK 32.1 million), with recurring revenue accounted for 98.5% (95.4%) of the total.  Benefitting from proactive cost reduction activities, positive consumable sales and currency revaluation gains, primarily related to US dollar hedge contracts, the operating result for the first quarter finished at SEK 10.2 million (SEK 7.4 million), providing an operating margin of 37.7% (23.0%).  Overall, the first quarter revenue was in line with expectations and the full-year outlook remains unchanged, with the ramp of series production and planned installation activities expected to intensify in the second-half of the year.
 
With the resetting of the series production run-rate to 3.1 million Engine Equivalents, 2025 will be a year of recovery.  The recovery will benefit from the start of production of new commercial vehicle engine programmes at First Automobile Works (FAW) in China – announced in January – and at MAN in Germany – announced in February.  Combined, these programmes have the potential to provide up to one million incremental Engine Equivalents per year at mature volume.  In the near-term, 2025 will also benefit from the planned start of new series production programmes that have not yet been announced and by a general consensus in the industry that market conditions and commercial vehicle sales will improve in the second-half of the year.
 
Changing landscape for tariffs and emissions legislation
The recent changes regarding international tariffs on vehicles and auto parts have created considerable uncertainty in the automotive sector.  In the specific case of SinterCast, there are no cast iron cylinder block and head foundries in the United States.  All cast iron cylinder blocks and heads are imported, with the main sources being Mexico and Brazil, with some components coming from Europe and none, as yet, from Asia.   As the US must import 100% of its cast iron cylinder blocks and heads, the tariffs cannot have a direct effect on the SinterCast series production volume.  However, if new or future tariffs lead to a reduction in automotive sales, the decreased volume can have an indirect impact on SinterCast.
 
In parallel with the ongoing tariff discussions, the Trump administration has decided to delay EPA emissions legislation that was planned to take effect in 2027.  The original 2027 EPA legislation had two main implications for the industry: first, there would be a pre-buy in 2026, improving near-term commercial vehicle sales; and second, the phase-in could motivate up to 10% heavy duty electric truck sales in 2028 and up to 30% in 2032.  While the delay will negate the pre-buy effect in 2026, the larger implication for SinterCast is that there will be a longer runway for the introduction of heavy duty electric trucks in North America.  Likewise, Euro 7 emissions legislation for commercial vehicles in Europe has been delayed from 2027 to 2029.  These delays are likely to delay infrastructure investment and have a negative compounding effect on the timeline for the adoption of heavy duty electric trucks.  The current legislative landscape in both Europe and the US will increase the opportunity for commercial vehicles running on internal combustion engines with clean fuels such as biodiesel, HVO, renewable natural gas, synthetic liquid fuels and hydrogen.  The operational and environmental benefits of these net-zero fuels, combined with the existing infrastructure for internal combustion engine production, servicing and refuelling, will ensure that the internal combustion engine is an important part of the long-term solution for sustainable transportation.
 
Installations biased to the second-half, as ever
While installation revenue in the first quarter was modest at SEK 0.2 million (SEK 1.2 million), planning activities progressed positively.  This includes the commitment for our first installation in India at the Saroj Group, that was announced on 10 February, with the installation targeted for the second quarter.  Installation revenue will also be derived from the CGI System 4000 sold to the Maringá Soldas foundry in Brazil, that was announced on 16 September 2024, where the importation of the equipment has awaited authorisation from the Brazilian customs authorities.  The customs authorisation was awarded last week and the Maringá revenue of approximately SEK 2.5 million is expected to be realised in the third quarter. Several installation opportunities are currently under discussion with the goal to secure orders during the first half of the year and to conclude the installations before year-end.  While some foundries have begun to contemplate capital expenditures in consideration of the current trade and tariff uncertainties, the SinterCast goal for 2025 remains to exceed the installation revenue of SEK 11.4 million posted in 2024.

SinterCast is the world’s leading supplier of process control technology for the reliable high volume production of Compacted Graphite Iron (CGI). Stronger, stiffer and more durable than conventional iron, CGI enables the development of smaller, lighter and more fuel efficient engines in passenger vehicle, commercial vehicle and industrial power applications. The use of SinterCast-CGI currently contributes to the reduction of approximately ten million tonnes of CO2 per year. With 57 installations in 13 countries, SinterCast provides sustainable solutions for manufacturing and transportation to the global foundry and automotive industries. SinterCast is a publicly traded company, quoted on the Small Cap segment of the Nasdaq Stockholm stock exchange (SINT). For more information: www.sintercast.com

For more information:

Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Office: +46 150 794 40
Mobile: +44 771 002 6342
e-mail: steve.dawson@sintercast.com
website: www.sintercast.com
Corporate Identity Number: 556233-6494

This press release contains information SinterCast AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the President & CEO Dr. Steve Dawson, at 08:00 CET on 30 April 2025.