Consistent strategy execution in a challenging market environment
Q3 2025 highlights
- Order intake for the rolling 12-month period decreased by 5% to SEK 18,665 million (19,646), with organic growth of -1%.
- Revenues decreased by 6% to SEK 4,222 million (4,498), with organic growth of 0%.
- Adjusted operating profit (EBIT) amounted to SEK 197 million (314), with a margin of 4.7% (7.0), and included currency effects of SEK -41 million compared with the year-earlier period.
- Operating profit (EBIT) totaled SEK 127 million (290), with a margin of 3.0% (6.5), and included metal price effects of SEK -70 million (-24).
- Adjusted earnings per share, diluted, was SEK 0.56 (1.02).
- Earnings per share, diluted, was SEK 0.34 (0.95).
- Free operating cash flow amounted to SEK 285 million (411).
CEO's comment
Market conditions
Our diversified exposure continues to contribute positively in a quarter characterized by mixed market conditions. Activity levels in key segments, such as Oil and Gas and Nuclear in the Tube division, and Medical in the Kanthal division, remained high. Demand in the Strip division remained at a favorable level.
The generally cautious attitude among customers, especially in Europe, has persisted, reinforced by trade policy turbulence. This is particularly noticeable in the Industrial as well as Chemical and Petrochemical segments, where customers are holding off on their investment decisions. At the same time, the previously weak performance for the Industrial Heating segment in Kanthal has now leveled off, and we noted an upturn from low levels.
Order intake for the rolling 12-month period amounted to SEK 18,665 million (19,646) and organic growth was -1%.
Earnings impacted by extended maintenance stoppage
Revenues amounted to SEK 4,222 million (4,498), with organic growth of 0%. The Medical segment continued its strong performance, while we were negatively affected by customers' cautious stance in the Industrial and Chemical and Petrochemical segments in Europe. Adjusted EBIT totaled SEK 197 million (314), with a margin of 4.7% (7.0), impacted by a weaker Europe and the extended maintenance stoppage over the summer at one of the largest production units in Sandviken, Sweden. Earnings also included a currency headwind of SEK -41 million compared to the year-earlier period.
Free operating cash flow for the quarter amounted to SEK 285 million (411), impacted by a lower operating profit and increased investments.
Measures for increased efficiency
We are continuously working to adapt capacity and costs to prevailing market conditions. We are now also initiating a number of targeted measures to further strengthen our operational efficiency and long-term competitiveness. The majority of these measures aim to permanently reduce cost levels, including through restructuring, while others form a natural part of our continuing efforts.
In total, we estimate that the measures will generate cost savings of just over SEK 200 million per year. At the same time, we assess that non-recurring costs related to the restructuring activities will amount to nearly SEK 400 million, of which approximately half will affect cash flow. Most of these costs will impact earnings in the fourth quarter.
Strong finances enable consistent strategy execution
I regard the fact that we are a cash-generating company in times like these, with an already strong balance sheet, as a strength. This allows us, even in softer market conditions, to continue to execute on our strategy, while also allowing us to remain disciplined in our order bookings going forward to ensure price leadership.
We are also continuing as planned with our ongoing growth initiatives in the Medical, Industrial Heating, Nuclear and Chemical and Petrochemical segments. These efforts, alongside our strong financial position and strategic direction, mean that we are well positioned to leverage opportunities, even in challenging market conditions. With a focus on long-term value creation, we stand firm in our ambition of delivering sustainable and profitable growth.
Göran Björkman, President and CEO
Conference call and webcast
A webcast and conference call will be hosted on October 22, 2025 at 1 pm CET. More information and a presentation will be available at www.alleima.com/investors
Dial-in details for the conference call
- Sweden: +46 (0) 8 5051 0031
- UK: +44 (0) 207 107 06 13
- US: +1 (1) 631 570 56 13
Link to webcast
-Webcast
Sandviken, October 22, 2025
Alleima AB (publ)
Contact details
Andreas Eriksson, Investor Relations Officer
andreas.eriksson@alleima.com
Phone: +46 (0) 70 542 86 01
Yvonne Edenholm, Press and Media Relations Manager
Yvonne.edenholm@alleima.com
Phone: +46 (0) 72 145 23 42
About Alleima
Alleima, is a global manufacturer of high value-added products in advanced stainless steels and special alloys as well as solutions for industrial heating. Based on long-term customer partnerships and leading materials technology, we develop products for the most demanding applications and industries. Our offering includes products like seamless steel tubes for the energy, chemical and aerospace industries, precision strip steel for white goods compressors, air conditioners and knife applications, based on more than 900 active alloy recipes. It also includes ultra-fine wires for medical and micro-electronic devices, industrial electric heating technology and coated strip steel for fuel cell technology for cars, trucks, and hydrogen production. Our fully integrated value chain, from R&D to end-product, ensures industry-leading technology, quality, sustainability, and circularity. Alleima, with headquarter in Sandviken, Sweden, had approximately 6,500 employees and revenues of about 20 billion SEK in about 80 countries in 2024. The Alleima share was listed on Nasdaq Stockholm's Large Cap list on August 31, 2022 under the ticker 'ALLEI'. Learn more at www.alleima.com.
This information is information that Alleima AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11.30 AM CET on October 22, 2025.
