Trelleborg earnings reached record levels in the third quarter of 2026, with sales rising 8% to SEK 9,232 million and EBITA increasing 16% to SEK 1,781 million. Results discussed on October 23 showed strong Sealing Solutions demand lifting group profitability, while management raised its annual restructuring cost forecast as projects moved forward faster than planned.
Key Takeaways
- The EBITA margin reached a record 19.3%, up from 18.1% a year earlier.
- Sealing Solutions led organic growth, while Industrial Solutions and Medical Solutions faced weaker comparisons.
- Management expects fourth-quarter organic growth to match or exceed Q3, subject to project delivery timing.
Table of Contents
- Trelleborg earnings grow faster than revenue
- Sealing demand offsets weaker business-area comparisons
- Faster restructuring raises annual costs
- Fourth-quarter growth depends partly on project timing
- Conclusion
Trelleborg earnings grow faster than revenue
Organic sales increased 6% in the quarter, with acquisitions and currency movements each adding one percentage point to reported growth. The faster increase in EBITA translated into a 1.2-percentage-point improvement in the group margin.
Earnings per share excluding items affecting comparability rose 23% to SEK 5.15 from SEK 4.20. Including those items, earnings per share increased to SEK 4.92 from SEK 3.94. Quarterly items affecting comparability totaled SEK 67 million, entirely related to restructuring.
Net financial expense narrowed to SEK 109 million from SEK 126 million a year earlier. CFO Fredrik Nilsson nevertheless expects that expense to become somewhat higher going forward because of higher interest rates.
| Item | Details |
|---|---|
| Quarter-end net debt | SEK 9,480 million |
| Net debt/EBITA | 1.2 times |
| 2026 capital expenditure guidance | SEK 1,450 million, unchanged |
| 2026 intangible amortization guidance | SEK 650 million, unchanged |
| Underlying tax rate guidance | 25% |
Sealing demand offsets weaker business-area comparisons
Sealing Solutions delivered 9% organic growth, supported by semiconductor, aerospace and automotive demand. Its EBITA margin improved by nearly three percentage points. CEO Peter Nilsson said semiconductor and aerospace activities were more profitable than the average, helping both growth and margins.
Trelleborg’s semiconductor sealing products include high-performance O-rings, engineered molded parts and advanced materials designed for critical semiconductor processes. That product range illustrates the specialist applications behind the business’s exposure; management put semiconductor sales at about 4%–5% of group revenue.
Industrial Solutions grew 4% organically, supported by infrastructure and marine projects. Its margin declined because a particularly profitable project in the prior-year quarter did not recur. Construction demand remained weak, while automotive and rail activity was slightly lower.
Medical Solutions sales declined 1% organically against a strong comparison, with weaker Asian demand also weighing on performance. Its new Costa Rica facility was commercially ramping up.
Faster restructuring raises annual costs
Trelleborg increased its full-year restructuring cost forecast to SEK 550 million from SEK 375 million. Fredrik Nilsson attributed the change to faster execution of projects originally scheduled for 2027, which should mean lower restructuring costs next year. The increase therefore reflects an accelerated timetable rather than a completed improvement in profitability.
Quarterly cash flow rose 6%, and rolling 12-month cash conversion reached 95%. Higher receivables and inventory modestly weighed on working capital, while capital expenditure was SEK 26 million lower.
The company bought back SEK 538 million of shares during Q3 and plans to continue purchases at approximately SEK 500 million per quarter.
Fourth-quarter growth depends partly on project timing
Management expects fourth-quarter organic growth to be broadly in line with Q3’s 6% or one to two percentage points higher. Peter Nilsson cited strong order intake but cautioned that customer acceptance and execution timing could affect Industrial Solutions project deliveries.
He expects Industrial Solutions’ margin to improve sequentially if those deliveries proceed as planned, while Sealing Solutions should remain at a healthy profitability level. These expectations are guidance, not completed fourth-quarter results.
Conclusion
Trelleborg earnings benefited from stronger sealing demand and a higher group margin. The next test is fourth-quarter project execution: delivery timing will help determine whether organic growth exceeds Q3 and Industrial Solutions achieves the sequential margin improvement management expects.
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