Continued margin improvement
Trelleborg ended 2025 with a stable fourth quarter. The Group reported positive organic sales growth despite continued volatile market conditions and declining volumes in several market segments. Organic sales increased 1 percent compared with the preceding year. Acquisitions contributed 3 percent, while currency translation had a negative impact of 9 percent.
EBITA, excluding items affecting comparability, declined 3 percent, fully attributable to negative exchange rate effects of SEK 140 m from the translation of foreign subsidiaries. The EBITA margin amounted to 18.4 percent (18.1), the highest ever for a fourth quarter. Operating cash flow strengthened, increasing by 3 percent. In view of the Group's strong financial position and stable earnings, the Board of Directors proposes a dividend of SEK 8.00 per share (7.50).
Sustainability is an integral part of our long-term value-creation strategy. The share of renewable and fossil-free electricity increased to 98 percent (88) during the year, proving that our initiatives are generating the desired effect.
Trelleborg is continuing its strategic development journey toward becoming a more stable and less cyclical business. The Group has gradually enhanced its business model by consistently focusing on advanced, value-creating solutions in selected applications and market segments. Our profitability has improved and performed in line with our long-term ambitions, despite challenging market conditions at times throughout the year.
Our already robust market positions were further strengthened during the year with the addition of six carefully selected acquisitions. At the beginning of 2026, we also acquired Nexus Elastomer Molds, a specialist in customized tooling solutions and automated manufacturing cells.
In 2025, the Group invested significantly to expand its footprint in priority geographies and market segments. New production facilities were inaugurated in Costa Rica and Vietnam, while existing facilities in the US and Malta were expanded. We will continue to invest in new plants in India, the US and Morocco in 2026. Combined, this provides a solid platform for continued long-term value creation and improved operational efficiency.
Trelleborg Industrial Solutions reported lower organic sales for the quarter compared with the corresponding period of the preceding year. The primary reason for the decline is a temporary reduction in deliveries in large-scale marine projects and in LNG transfer solutions. Demand in parts of the construction sector remained weak, while the performance in industrial market segments varied across applications. Sales to the automotive industry were stable and deliveries to the aerospace industry increased. A further improvement was noted for the operating margin, fueled by a continued focus on attractive segments and completed structural improvements.
Trelleborg Medical Solutions reported a clear improvement in organic sales compared with the corresponding period of the preceding year. Sales of polymer solutions to the medtech market performed positively in Europe and Asia, while the North American market remained sluggish. Deliveries to the smaller life science segment noted strong global growth. The operating margin strengthened, primarily due to higher volumes. The new state-of-the-art facility in Costa Rica was inaugurated at the end of the quarter.
Trelleborg Sealing Solutions reported a clear increase in organic sales compared with the corresponding period of the preceding year. Sales to the industrials segment increased in all geographic markets. Deliveries to the automotive industry decreased, mainly in Europe, and were also sluggish in other markets. The aerospace industry continued to demonstrate strong global sales growth. The operating margin improved despite a negative impact from the sales mix and acquisitions with initially lower profitability.
The Group is financially strong and has a robust balance sheet that provides scope for continued value-creating acquisitions, selective investments in current operations and further share buybacks. Despite the continued uncertainty and some volatility dominating the external environment, our general assessment is that demand in the first quarter will be on a par with trend in the fourth quarter.
Peter Nilsson
Demand is expected to be on a par with the fourth quarter of 2025, adjusted for seasonal variations. Due to the geopolitical situation, the outlook is associated with continued uncertainty.
Market outlook from the interim report published on October 24, 2025, relating to the fourth quarter of 2025
The Board of Directors proposes a cash dividend of SEK 8.00 per share (7.50).
This is a translation of the company's Interim Report in Swedish.
Contacts
Investors/analysts: Vice President IR Christofer Sjögren, +46 (0)410 67068, +46 (0)708 665140, christofer.sjogren@trelleborg.com
About Us
Trelleborg leverages in-depth materials and applications expertise with early market insights, making the Group a world leader in engineered polymer solutions. We offer a unique portfolio covering a broad range of applications - even the most complex ones. In 2025, Trelleborg Group reported annual sales of approximately SEK 34 billion, with operations in around 40 countries. The Group comprises three business areas: Trelleborg Industrial Solutions, Trelleborg Medical Solutions, and Trelleborg Sealing Solutions. The Trelleborg share has been listed on the Stock Exchange since 1964 and is traded on Nasdaq Stockholm, Large Cap. www.trelleborg.com
This information is information that Trelleborg 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 2026-01-29 07:45 CET.
