Strong production in March reinforces improving market outlook
First Quarter 2026
- Revenue for Period: SEK 25.0 million (SEK 27.1 million), driven by adverse exchange rate movements of approximately 11%. On a constant currency basis, revenue increased by approximately SEK 0.6 million.
- Recurring revenue accounted for 96.6% (98.5%) of the total revenue
- Operating Result: SEK 6.3 million (SEK 10.2 million), primarily reflecting a SEK 2.6 million year-on-year reduction in revaluation effects from hedge contracts and foreign currency receivables, compared to a strong positive contribution in the prior year.
- Earnings per Share: SEK 0.73 per share (SEK 1.08 per share)
- Cashflow from Operations: SEK 5.7 million (SEK 12.2 million)
- 3.5 million Engine Equivalents in March, 17% above full-year 2025 series production
- Pre-production underway for new commercial vehicle programmes in North and South America
- New equipment orders received for capacity expansion in advance of high volume series production
- Installed Base: 58 (57) installations 26 (26) fully automated systems, 24 (23) mini-systems and eight (eight) tracking systems in 13 (13) countries
CEO Message
Strong production in March; strong signals from the industry
Series production in the first quarter finished at 3.0 million (3.1 million) Engine Equivalents, benefitting from strong production of 3.5 million (3.2 million) Engine Equivalents in March. Year-on-year, first quarter production was up 4% for passenger vehicles and 10% for off-road equipment, but offset by a 10% decrease in commercial vehicles, primarily due to low demand in North America. Following prolonged market headwinds, the March production marked the first time in 15 months that the current month was higher than the year ago month. The improved production in March supports our outlook that the difficult market conditions will give way to recovery and growth during 2026. It also aligns with consistent guidance from our foundry customers and industry analysts that orderbooks are improving, primarily driven by strong increases in commercial vehicle demand in Europe and North America. The American Trucking Association's Truck Tonnage Index for March increased by 3%, providing the largest year-on-year gain since October 2022.
Revenue for the first quarter finished at SEK 25.0 million (SEK 27.1 million) following the combined effects of a 3% decrease in series production, a 2% increase in Sampling Cup shipments, a price increase at one major customer that took effect midway through the quarter, and an 11% negative impact from exchange rates. Recurring revenue derived from the Production Fee levied for each Engine Equivalent, consumables and software licence fees accounted for 96.6% (98.5%) of the revenue. The operating result for the period was SEK 6.3 million (SEK 10.2 million), providing an operating margin of 25.4% (37.7%). The combination of the improving production outlook and the full-year cost reductions following the retirement of the Technical Director on 31 December 2025 and the upcoming retirement of the CEO at the AGM in May, will drive the operating result and operating margin through the balance of the year.
The series production outlook continues to improve, both in the near-term and in the long-term. In the near-term the production volume will benefit from the overall market recovery, pent-up demand, and the start of two new high-volume commercial vehicle programmes that are scheduled to begin production in late-2026 and early-2027. Longer term, we are involved in two additional commercial vehicle programmes that will start production in 2030. In total, the new programmes are forecast to increase the series production to eight million Engine Equivalents in 2031, corresponding to a revenue outlook well in excess of SEK 200 million. The long-term outlook is further bolstered by the increasing realisation that battery electric and hydrogen fuel cell vehicles are not well-suited to the sectors that SinterCast works in, specifically, heavy-duty commercial vehicles and pick-up trucks. We remain convinced that the internal combustion engine will dominate these sectors in 2050.
In parallel with the development of the core business, SinterCast is progressing with its search campaign to identify acquisition opportunities. This initiative is initially focused on areas where SinterCast can leverage its expertise in precision measurement and process control, together with its strong brand recognition and international commercial reach, to deliver meaningful synergies and growth. Supported by a strong balance sheet, robust cash generation and the experience of our Board, the process is underway to identify opportunities that will further strengthen and accelerate the company's long-term growth.
Installation campaign underway
In preparation for the start of high volume commercial vehicle production, a current customer has ordered capacity expansions for its existing SinterCast System 3000 Plus process control system. The first phase of the expansion - ordered in 4Q 2025 and installed in April 2026 - includes the installation of a third SinterCast sampling and wirefeeding station. The three-station configuration is unique among all SinterCast installations, providing the capability to treat three ladles simultaneously for increased throughput. Following the successful installation, the customer has now ordered the newly developed SinterCast desulphurisation technology. This marks the first installation of the SinterCast desulphurisation solution, expanding the foundry's CGI production capability from the current induction furnaces to also include cupola iron. With an order value of approximately SEK 2 million, the desulphurisation solution provides higher volume, increased flexibility of raw materials and improved cost efficiency.
While installation revenue in the first quarter was modest at SEK 0.6 million (SEK 0.2 million), planning activities are progressing positively. 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. In the current climate of cautious capital expenditures, SinterCast targets to reach the historical average of SEK 8 million during 2026, with higher installation revenue outlook in 2027 through 2030 to accommodate the increasing series production demand.
This report has not been reviewed by the company's Auditors.
Stockholm 29 April 2026
For further information please contact:
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
Corp. Id. 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 29 April 2026.
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 58 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
