Interim report and year-end report 2025

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
President and CEO

Fourth quarter 2025

• Net sales for the quarter declined by 5 percent to SEK 8,380 m (8,783). Organic sales increased by 1 percent compared with the preceding year, structural changes increased sales by 3 percent while translation of currency reduced sales by 9 percent compared with the preceding year.
• EBITA, excluding items affecting comparability, decreased by 3 percent to SEK 1,542 m (1,587). The exchange rate effect from the translation of foreign subsidiaries had a negative impact of SEK 140 m. The EBITA margin was 18.4 percent (18.1). This was the highest margin for a fourth quarter ever.
• Items affecting comparability for the quarter totaled SEK -176 m (-76) and pertained to restructuring costs of SEK -222 m (-76) and a positive effect of SEK 46 m attributable to the revaluation of an additional purchase payment recorded as a liability.
• EBITA, including items affecting comparability, amounted to SEK 1,366 m (1,511) for the quarter.
• Earnings per share, excluding items affecting comparability, amounted to SEK 4.30 (4.24), up 1 percent. The exchange rate effect from translation of foreign subsidiaries had a negative impact on earnings per share of SEK 0.38.
• The Board of Directors proposes a cash dividend of SEK 8.00 per share (7.50).
• For the Group as a whole, earnings per share were SEK 3.71 (3.99).
• Operating cash flow amounted to SEK 1,726 m (1,681), up 3 percent.
• The cash conversion ratio for the most recent 12-month period was 93 percent (89).

Full year 2025

• Net sales for full year 2025 were on par with the preceding year at SEK 34,329 m (34,170). Organic sales increased by 1 percent compared with the preceding year, structural changes increased sales by 5 percent while translation of currency reduced sales by 6 percent compared with the preceding year.
• EBITA, excluding items affecting comparability, increased by 2 percent to SEK 6,286 m (6,140). The exchange rate effect from the translation of foreign subsidiaries had a negative impact of SEK 329 m for a full year.
• Items affecting comparability totaled SEK -389 m (-315) and pertained to restructuring costs of SEK -435 m (-315) and a positive effect of SEK 46 m attributable to the revaluation of an additional purchase payment recorded as a liability.
• EBITA, including items affecting comparability, amounted to SEK 5,897 m (5,825).
• Earnings per share, excluding items affecting comparability, amounted to SEK 17.09 (16.74), up 2 percent.
• For the Group as a whole, earnings per share were SEK 15.76 (15.73).
• Operating cash flow amounted to SEK 5,288 m (5,011), up 6 percent.
• The cash conversion ratio for the most recent 12-month period was 93 percent (89).

Market outlook for 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.

Market outlook from the interim report published on October 24, 2025, relating to the fourth quarter of 2025
Demand is expected to be on a par with the third quarter of 2025, adjusted for seasonal variations. Due to the geopolitical situation, the outlook is associated with continued uncertainty.

Dividend 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.