A good start to the year

The first quarter marked a good start to the year for the Group. All three business areas reported year-on-year organic growth. Moreover, the operating margin reached its highest level ever for a first quarter. Net sales fell 3 percent, but this was due to a negative currency impact of full 9 percent. A more relevant indicator is that organic sales increased 4 percent compared with the preceding year, while acquisitions made a positive contribution of a further 2 percent.

EBITA, excluding items affecting comparability, declined 2 percent, mainly due to negative currency translation effects of SEK 132 m. In parallel, the EBITA margin improved to 18.4 percent (18.2). Operating cash flow increased 14 percent, and the cash conversion ratio for the rolling 12-month period was a healthy 95 percent. Despite the negative currency impact, earnings per share, excluding items affecting comparability, increased 5 percent, due in part to the ongoing share buyback program.

Trelleborg Industrial Solutions reported slightly positive year-on-year organic sales growth, which is a clear improvement on the preceding quarter. While sales to infrastructure and marine projects were still low, these are expected to increase in the second half of the year. Deliveries to the construction industry remained subdued. Meanwhile, sales to the automotive and aerospace segments performed positively.

Trelleborg Medical Solutions delivered solid year-on-year organic sales growth. Sales to medtech customers in Europe trended favorably, and sales to North America also improved and displayed some growth. However, sales in Asia were lower year-on-year. At the same time, the smaller life science segment continued to deliver strong growth.

Trelleborg Sealing Solutions reported robust year-on-year organic sales growth. A positive trend was reported for the industrials segment, with all major regions reporting growth. The automotive segment, however, reported an overall decline, mainly on account of a softer aftermarket. Sales to the aerospace industry continued to grow strongly, outperforming the overall positive market trend in the segment.

Trelleborg is a more profitable company than most other operators in our industry and because of this, the majority of the acquisitions we make initially have a dampening effect on the Group’s margin. A central part of our value creation is our commitment and structured approach to integrating acquired companies, which over time enable profitability levels in line with those of the Group – at a minimum.

During the first quarter, Trelleborg Sealing Solutions completed the acquisition of the Austrian company Nexus Elastomer Molds, a business specialized in advanced, customized tooling solutions and automated manufacturing cells, primarily for liquid silicone rubber. Nexus’s expertise will strengthen and expand the capabilities of Trelleborg Sealing Solutions and is also expected to contribute positively to the Group’s two other business areas.

The inauguration of a new facility in North Carolina for engineered polymer-coated fabrics is scheduled for the second quarter, along with the inauguration of a new production facility in Morocco for sealing solutions for the aerospace industry. These investments will further strengthen our global footprint and create a solid platform for future business opportunities.

Strong regional platforms and a sharp focus on selected applications and market segments will enable us to build an even more robust Trelleborg. By combining global capabilities with a local footprint, we can create considerable competitive advantages over regional competitors. Together with bolt-on acquisitions, this will strengthen the Group’s capacity for growth and its long-term profitability. Despite the continued uncertainty in our external environment, our assessment is that demand in the second quarter will be somewhat higher than in the first quarter.

Peter Nilsson
President and CEO

First quarter 2026

• Net sales for the quarter declined by 3 percent to SEK 8,606 m (8,866). Organic sales increased by 4 percent compared with the preceding year, structural changes increased sales by 2 percent while translation of currency reduced sales by 9 percent compared with the preceding year.
• EBITA, excluding items affecting comparability, decreased by 2 percent to SEK 1,586 m (1,616). The exchange rate effect from the translation of foreign subsidiaries had a negative impact of SEK 132 m. The EBITA margin was 18.4 percent (18.2). This was the highest margin ever for a first quarter.
• Items affecting comparability for the quarter totaled SEK 42 m (-61) and pertained to restructuring costs.
• EBITA, including items affecting comparability, amounted to sek 1,544 m (1,555) for the quarter.
• Earnings per share, excluding items affecting comparability, amounted to SEK 4.50 (4.28), up 5 percent.
• For the Group as a whole, earnings per share were SEK 4.35 (4.08).
• Operating cash flow amounted to SEK 937 m (821), up 14 percent.
• The cash conversion ratio for the most recent 12-month period was 95 percent (90).

Market outlook for the second quarter of 2026
Demand is expected to be somewhat higher compared to the first quarter of 2026, adjusted for seasonal variations. Due to the geopolitical situation, the outlook is associated with continued uncertainty.

Market outlook from the interim report published on January 29, 2026, relating to the first quarter of 2026
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.

This is a translation of the company’s Interim Report in Swedish