A solid quarter with record results

“The first quarter of the year developed well and in line with our expectations. Net sales rose 8 percent, resulting in the highest sales for an individual quarter. Organic sales increased 1 percent compared with the preceding year, acquisitions contributed 6 percent, and translation of currency increased sales by 1 percent. EBITA, excluding items affecting comparability, increased 8 percent, corresponding to a margin of 18.2 percent (18.1). Earnings were the highest to date for a single quarter. Cash flow developed well, and the cash conversion ratio for the last twelve-month period was a solid 90 percent.

Despite the turbulence and increased uncertainty in the macroeconomic environment, all business areas delivered in line withour expectations. Once again, we demonstrated that Trelleborg is a more stable and profitable Group today than a few years ago. We benefit significantly from our operating model and flexible structure, allowing the Group to quickly adjust and offset substantial economic fluctuations.

Organic sales for Trelleborg Industrial Solutions increased a couple of percentage points. Diversified industrials reported a mixed development. Some sub-segments, such as marine solutions and LNG projects, as well as sealing solutions for water infrastructure, reported strong growth. However, sales to other sub-segments remained weak, particularly for seals to the construction industry, which were impacted by the continued soft North American market. The trend for deliveries to automotive manufacturers was subdued in all markets. Despite the mixed performance, the business area achieved its highest operating profit and margin to date for a single quarter.

Trelleborg Medical Solutions noted a satisfactory increase in organic sales during the quarter, while the integration of Baron Group had a substantial positive impact on the business area’s profitability. During the period, the European medtech market was the main driver behind the increase in sales, but the life science segment also demonstrated robust growth. However, our North American market for polymer solutions for the medtech segment is still cautious.

Organic sales for Trelleborg Sealing Solutions were unchanged year-on-year. The implementation of acquisitions provided a sales increase of 5 percent. Sales to diversified industrials segments declined in Europe, although the decline was particularly notable in North America. This was mainly due to weaker deliveries to the construction and agricultural machinery industries. Sales in Asia increased in most segments. Deliveries to the automotive industry had a weaker development in all markets. Sales to the
aerospace industry demonstrated continued good growth globally. Operating profit was maintained at the same level as in the preceding year, although the margin declined slightly as a result of lower sales volumes and acquisitions with initially lower margins.

Our assessment is that the direct effects of tariffs will have a limited impact on the Group’s development. Trelleborg operates a ‘local-for-local’ production model, which means that most of what we produce in a region is sold within that region. We are well prepared to address the challenges from tariffs through strategic production optimization, regional localization, proactive price management and global flexibility. It is more difficult to estimate the indirect impact, meaning the extent to which our customers will be affected.

The current weakening of established trade relations is creating greater uncertainty than we have seen for some time. The ground rules are changing almost every week, and this makes it difficult to give a reliable outlook. Order intake for the quarter was higher than for the preceding period, which would normally indicate that demand for our solutions is steadily improving. However, the high level of uncertainty means our general assessment is that demand in the second quarter will be on a par with the first quarter.”

Peter Nilsson,
President and CEO

First quarter 2025

• Net sales for the quarter increased 8 percent to sek 8,866 m (8,234). This was the highest net sales reported for a single quarter. Organic sales increased 1 percent compared with the preceding year, structural changes increased sales by 6 percent while translation of currency increased sales by 1 percent compared with the preceding year.
• EBITA, excluding items affecting comparability, increased 8 percent to SEK 1,616 m (1,490). Earnings were the highest to date for a quarter. The EBITA margin was 18.2 percent (18.1).
• Items affecting comparability for the quarter totaled SEK -61 m (-55) and pertained to restructuring costs.
• EBITA, including items affecting comparability, amounted to SEK 1,555 m (1,435) for the quarter.
• Earnings per share, excluding items affecting comparability, amounted to SEK 4.28 (4.23), up 1 percent.
• For the Group as a whole, earnings per share were SEK 4.08 (4.06).
• Operating cash flow amounted to SEK 821 m (718), up 14 percent.
• The cash conversion ratio for the most recent 12-month period was 90 percent (95).
• The key figures in this report relate to continuing operations, unless otherwise stated.

Market outlook for the second quarter of 2025
Demand is expected to be on a par with the first quarter of 2025, adjusted for seasonal variations. Due to the geopolitical situation, the outlook is associated with unusually high uncertainty.

Market outlook from the interim report published on January 29, 2025, relating to the first quarter of 2025
Demand is expected to be on a par with the fourth quarter of 2024, adjusted for seasonal variations. The geopolitical situation entails continued uncertainty.

This is a translation of the company’s Interim Report in Swedish.