In This Article:
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Organic Sales Growth: 4% increase in Q4.
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EBITA: Almost SEK1.6 billion, with a margin of 18.1%.
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Cash Flow: Strongest cash flow quarter ever for the company.
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Revenue: SEK8.783 billion for the quarter, up 4% from SEK8.421 billion.
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Net Debt: SEK6.735 billion at the end of the quarter.
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Return on Capital Employed: 12%.
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Earnings Per Share: Increased from 4.08% to 4.24% excluding items affecting comparability.
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CapEx Guidance for 2025: SEK1.650 billion.
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Restructuring Costs Guidance for 2025: SEK300 million.
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Amortization of Intangibles Guidance for 2025: SEK650 million.
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Underlying Tax Rate Guidance for 2025: 25%.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Trelleborg AB (TBABF) reported a 4% organic sales growth in Q4, driven by increased project sales and successful M&A activities.
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The company achieved its highest ever EBITA margin for a fourth quarter at 18.1%, indicating improved operational efficiency.
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Strong cash flow generation was noted, marking the strongest cash flow quarter ever for Trelleborg AB (TBABF).
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The company successfully integrated several acquisitions, such as the Baron Group, contributing to a significant jump in profitability for the medical solutions segment.
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Trelleborg AB (TBABF) continues to make progress in sustainability, with a substantial improvement in CO2 emissions and an increase in the share of renewable and fossil-free electricity to 88%.
Negative Points
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The construction segment remains challenging, particularly in North America, impacting the industrial solutions business area.
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Organic sales growth was flat in the medical solutions segment, with some inventory reductions at customer sites.
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Sealing solutions faced a small decrease in organic sales, with core segments like off-highway and construction equipment still experiencing depressed demand.
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The company anticipates a lower run rate for medical solutions in Q1 2025 due to seasonal factors in China and Australia.
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Despite strong performance, the company acknowledges uncertainty in certain markets, particularly due to geopolitical factors, which could impact future growth.
Q & A Highlights
Q: Can you elaborate on the impact of your investments in greenfields and brownfields on margins as they come on stream in 2025? Also, did the marine projects in industrial solutions come with a positive margin mix? A: Peter Nilsson, CEO: The initial impact of these investments will be minimal on group margins, with some challenges in specific business units. We expect these projects to be well-loaded from the start, minimizing operational issues. Regarding the marine projects, they do not inherently have a better margin but contribute positively due to their volume.