Third consecutive quarter of increasing recurring revenue as market recovers
Second Quarter 2026
· Revenue for Period: SEK 27.4 million (SEK 31.1 million). Excluding adverse exchange rate movements and Equipment sales, revenue decreased by 7%, reflecting lower commercial vehicle production volumes. Recurring revenue accounted for 93.5% (92.3%) of total revenue.
· Operating Result: SEK 7.4 million (SEK 11.2 million), yielding 27.1% (36.1%) operating margin, reflecting lower series production volumes, adverse exchange rates and lower revaluation gains, partly offset by lower operating costs.
· Earnings per Share: SEK 0.82 per share (SEK 1.24 per share).
· Cashflow from Operations: SEK 7.4 million (SEK 9.1 million), reflecting the lower operating result and delayed customer payments around the period-end.
· Dr Steve Dawson retired as President & CEO following 24 years in the role but remains as Board member and advisor. Dr Vítor Anjos succeeded him as President & CEO following the Annual General Meeting on 19 May 2026.
· New order for high-volume programme at a new commercial vehicle OEM, with start in early-2027.
· Growth to eight million Engine Equivalents on track for 2031.
Year-to-Date 2026
· Revenue for Period: SEK 52.4 million (SEK 58.1 million), representing a 10% increase over H2 2025. Excluding 7.8% adverse impact of exchange rate movements, revenue decreased by approximately 2%, reflecting lower commercial vehicle production volumes, partly offset by successful price increases. Recurring revenue accounted for 95.0% (95.2%) of the revenue.
· Operating Result: SEK 13.8 million (SEK 21.4 million), impacted by lower gross results of SEK 4.5 million (primarily exchange rates) and lower revaluation gains of SEK 3.9 million. Operating margins of 26.3% (36.8%).
· Earnings per Share: SEK 1.55 per share (SEK 2.33 per share).
· Cashflow from Operations: SEK 13.1 million (SEK 21.4 million), reflecting the lower operating result and increased investment in working capital.
· Dividend: Ordinary dividend of SEK 3.00 per share (SEK 6.00 per share) and no extraordinary dividend (SEK 1.00 per share), corresponding to SEK 21.1 million (SEK 49.5 million), to be paid in two instalments.
· Installed Base: 59 (58) installations, 26 (26) fully automated systems, 25 (24) mini-systems and eight (eight) tracking systems in 13 (13) countries.
CEO Message
The recovery is taking hold, the future is taking shape
The second quarter results confirm that the market recovery is gaining momentum. Benefitting from stronger demand in the commercial vehicle sector, series production in the first half of 2026 was 15% higher than the second half of 2025. I am encouraged to see that we have moved beyond the market's weakest phase and that the anticipated recovery is beginning to take hold.
Revenue for the second quarter finished at SEK 27.4 million (SEK 31.1 million), a decrease of 11.7% year-on-year, due to lower production volumes and adverse USD/SEK exchange rate movements. However, the currency effect was partly offset by successful price adjustments. The operating result for the period was SEK 7.4 million (SEK 11.2 million), providing an operating margin of 27.1% (36.1%), demonstrating the strength of our business model even in a weaker market.
One of the greatest strengths of SinterCast is its recurring revenue business model, underpinned by a market position in which approximately two thirds of all CGI produced globally is made using SinterCast process control. Production fees, together with sampling consumables and software license fees, accounted for 93.5% (92.3%) of total revenue during the quarter.
The improvement in the market reflects recovering demand in the commercial vehicle sector, which accounts for approximately 50% of our production. Industry data indicate that new orders have increased by approximately 30% globally, compared with the same period last year.
In North America, where the second half of last year was especially challenging, new orders are increasing by approximately 140%. This reflects both the ongoing need for fleet renewal and the pre-buy effect ahead of the EPA 2027 emissions standard taking effect in January next year.
The stronger order books, together with new programme launches that we have previously announced, is expected to translate into higher production volumes towards the end of the second half of 2026 and into 2027.
Installation revenue in the second quarter was modest at SEK 0.8 million (SEK 2.1 million). However, our pipeline of installation opportunities remains strong, with several projects progressing towards final commitment. Our focus is on completing as many installations as possible before year-end. These installations are an important driver of future series production and recurring revenue. I remain confident that the second half of the year will better reflect the underlying level of customer activity.
Growth Beyond Market Recovery
The SinterCast growth story extends well beyond the market recovery, and the past quarter has been particularly productive in laying the foundations for our next phase of CGI growth.
The structural shift towards CGI in commercial vehicle engines continues to strengthen our long-term growth outlook. As market leader, we are at the centre of this shift and continue to see a healthy pipeline of new programme opportunities.
In July, we announced a new programme awarded to our customer Ironcast, with start of production scheduled for January 2027. Together with the programme announced in June 2025 for the same OEM, the combined volume is expected to increase our current production volume by approximately 13%.
Our pipeline of opportunities continues to develop. This includes the two engine programmes that we have previously announced, for start of production in 2030, alongside a new commercial vehicle programme that entered our business development pipeline during the quarter, targeted for start of production in early 2027.
Taken together, these and other opportunities support our long-term outlook to reach approximately eight million Engine Equivalents by 2031, corresponding to annual revenues above SEK 200 million.
Our scalable business model and existing production capacity for the Sampling Cup, enables us to support this growth without material investments. This operating leverage underpins our objective of delivering an operating margin of 40% by 2028.
Growth Through Acquisitions
The growth strategy for SinterCast extends beyond CGI production to include the acquisition of high-quality businesses with strong recurring revenues and attractive operating margins. We are making good progress with the acquisition opportunities we have identified. They complement our core business and enable us to leverage our expertise, technology and international commercial platform to create long-term shareholder value.
Supported by a strong balance sheet, robust cash generation and experience and strategic guidance of our Board, we are well positioned to pursue disciplined acquisitions that complement our core business and accelerate our growth.
Assuming the role of President & CEO of SinterCast is both a humbling and proud moment for me. Above all, I do so with deep respect for the company's history, with great appreciation for the talented people who have shaped it, and with enthusiasm for the future we can build together.
Drawing on 20 years of experience in metallurgy, CGI and foundry operations, I look forward to leading SinterCast through its next phase of strategic growth. I am confident that we are well positioned to build on the strong foundations already in place and to deliver on our commitments to shareholders.
The foundations are in place. The recovery is underway. The next phase of growth is beginning.
For more information:
Dr Vítor Anjos
President & CEO
SinterCast AB
Mobile: +46 764 924 633
E-mail: vitor.anjos@sintercast.com
This press release contains information SinterCast AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information was submitted for publication, through the agency of the President & CEO Dr Vítor Anjos, at 08:00 CET on 19 August 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 59 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
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