Third quarter 2025
- Sales volume increased by 25 percent to 153.4 ktonnes (122.7).
- Adjusted operating profit was SEK 398 million (420) and adjusted operating profit per tonne was 2.6 kSEK (3.4).
- Profit for the period amounted to SEK 253 million (285) and diluted earnings per share was SEK 2.27 (2.67).
- Operating cash flow increased to SEK 317 million (275).
- Return on capital employed was 10.8 percent (11.9 on December 31, 2024).
- Financial net debt was 1.6x adjusted EBITDA (1.8x on December 31, 2024).
- Excluding Shandong, total carbon emissions intensity (scope 1+2+3) was 7.4 tonnes CO2e/tonne (7.8), and the share of sourced recycled aluminium was 43.4 percent (47.4).
January - September 2025
- Sales volume increased by 24 percent to 464.2 ktonnes (375.5).
- Adjusted operating profit was SEK 1,242 million (1,247) and adjusted operating profit per tonne was 2.7 kSEK (3.3).
- Profit for the period amounted to SEK 807 million (835) and diluted earnings per share amounted to SEK 7.22 (7.84).
- Operating cash flow increased to SEK 783 million (564).
- Excluding Shandong, total carbon emissions intensity (scope 1+2+3) was 7.3 tonnes CO2e/tonne (7.4), and the share of sourced recycled aluminium was 44.3 percent (46.5).
- New operating segments from first quarter - Gränges Americas, Gränges Asia, and Gränges Europe.
Comments by Gränges' CEO Jörgen Rosengren: Continued strong sales growth and good cash flow
In the third quarter, Gränges delivered strong growth thanks to market share gains in all regions and all customer segments. These gains more than compensated for softer demand in Automotive and a sharp slow-down in HVAC. In total, sales volume grew 25 percent.
In Gränges Americas, sales volume was in line with last year as significant market share gains offset softer demand and destocking in HVAC. In Gränges Asia, sales volume increased by an impressive 88 percent driven by new business, mainly related to electric vehicles. The growth was enabled by the successful integration and ramp-up of our new plant in Shandong. Gränges Europe managed to grow sales volume by 17 percent in a weak market, which was also due to market share gains related to electric vehicles and other segments.
The Group's earnings benefited from volume growth, price increases, and improved productivity. However, higher costs for aluminium scrap - mainly due to new US import tariffs - had a negative impact. We also saw currency headwinds of SEK 43 million, primarily from translation effects. As a result, adjusted operating profit decreased by 5 percent to SEK 398 million compared to the record-high third quarter last year. In constant currency, operating profit increased by 5 percent.
Operating cash flow in the quarter remained strong despite the increased aluminium price, supported by good control of net working capital and modest capital expenditure, which helped reduce net debt. We see the good cash flow as further proof that we're entering a phase of stronger cash generation following the completion of our multi-year capacity expansion program.
We also made good progress towards our sustainability goals, continuing to reduce our carbon footprint by focusing on innovation, strategic partnerships, lower-carbon primary aluminium, as well as operational improvements.
Continued strong volume growth expected
The fourth quarter is always the most difficult quarter to predict, and this year is certainly no exception. Despite a weak demand forecast for HVAC and automotive, we expect continued market share gains to generate strong year-on-year sales volume growth. Gränges Asia is expected to continue at or above the current run-rate of approximately 50 ktonnes per quarter. For the rest of the Group, we expect high single-digit volume growth. Our ambition is to offset unfavorable currency effects and other negative external factors with continued growth, price increases and productivity improvements. Capacity expansion capex will remain low, which will strengthen operational cash flow and our balance sheet.
All in all, the third quarter of 2025 once again demonstrated the strength of our Navigate plan and ability to deliver stable results in an uncertain environment. I would like to express my gratitude to colleagues, customers, strategic partners, and shareholders who continue to support our strong performance and long-term industry leadership ambition.
Jörgen Rosengren, President and CEO
Webcasted presentation
CEO Jörgen Rosengren and CFO Oskar Hellström will present Gränges' Q3 report 2025 at a webcasted conference call Thursday October 23, 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.
For further information, please contact:
Sara Lander Hyléen, VP Communication & Investor Relations
sara.hyleen@granges.com, phone. +46 709 16 16 41
This information is information that Gränges 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 persons set out above, at 2025-10-23 07:30 CEST.
About Gränges
Gränges is a global leader in aluminium rolling and recycling in selected niches. We're committed to creating circular and sustainable aluminium solutions in partnership with our customers and suppliers - for a better future. Our solutions help customers grow and transition to climate neutrality. They are used for efficient climate control in transportation and buildings, electrification and battery components, recyclable packaging, and more. Gränges has production facilities and conducts sales in the regions Americas, Asia, and Europe with 3,500 employees and a total annual production capacity of 800 ktonnes. The share is listed on Nasdaq Stockholm (GRNG). More information is available at www.granges.com.