Alleima interim report Q2 2025
18 juli, 11:30
Alleima interim report Q2 2025
Resilient underlying profitability despite declining revenues
Q2 2025 highlights
—Order intake for the rolling 12-month period decreased by 6% to SEK 18,911 million (20,135), with organic growth of -2%.
—Revenues decreased by 11% to SEK 4,765 million (5,359), with organic growth of -4%.
—Adjusted operating profit (EBIT) amounted to SEK 454 million (592), with a margin of 9.5% (11.1), and included currency effects of SEK -115 million compared with the year-earlier period.
—Operating profit (EBIT) totaled SEK 282 million (689), with a margin of 5.9% (12.8), and included metal price effects of SEK -171 million (96).
—Adjusted earnings per share, diluted, was SEK 1.35 (2.23).
—Earnings per share, diluted, was SEK 0.81 (2.54).
—Free operating cash flow amounted to SEK 347 million (486).
CEO’s comment
Market conditions
The mixed market conditions continued during the quarter, and the advantages of our broad exposure were clear. Activity levels remained high in the Oil and Gas and Nuclear segments in the Tube division and in the Medical segment in the Kanthal division. Demand in the Strip division leveled off somewhat compared with the preceding quarter, but is still at a favourable level.
The market conditions in other customer segments were generally hesitant, driven by higher uncertainty resulting from trade policy turbulence. This was particularly noticeable in the project-related parts of our business, with customers being cautious about making major investment decisions. In the Tube division, demand was generally lower in the Chemical and Petrochemical and Industrial segments, with the largest decline in Europe. Demand in the Industrial Heating segment in Kanthal remained at a low level.
Order intake for the rolling 12-month period amounted to SEK 18,911 million (20,135) and organic growth was -2%.
Resilient underlying profitability
Revenues declined organically by 4% during the quarter to SEK 4,765 million (5,359). These lower revenues were mainly related to the short-cycle and low-refined business, in the Industrial segment and the Chemical and Petrochemical segment in the Tube division. Lower revenues for the Industrial Heating segment in Kanthal also added to this development.
Adjusted EBIT amounted to SEK 454 million (592), corresponding to a margin of 9.5% (11.1), and included currency headwinds of SEK -115 million compared with the year-earlier period. The EBIT margin excluding currency effects amounted to 11.4%, thereby demonstrating resilience despite lower revenues.
Free operating cash flow amounted to SEK 347 million (486), impacted by lower operating profit and higher growth investments.
Negligible direct impact from tariffs and trade barriers
We have local production in our largest regions for most of our businesses, including the US. We were successful at passing on the cost of tariffs to our customers, which meant that we did not note any significant negative direct impact from import tariffs to the US. However, we did see a greater impact on the global economy and demand resulting from delayed investment decisions among some customers, as described above.
Planned maintenance stoppage during the summer
We usually carry out planned maintenance stoppages in our production in the third quarter. This summer, we will replace our expansion press and the stoppage will therefore be longer than normal at one of the largest production sites in Sandviken. The new press has a higher degree of automation and will, among other things, increase productivity and improve safety for the operators.
Continued investments and adjustments
Moving forward, we need to remain agile in order to maintain a solid level of profitability in a turbulent market. We are making the necessary adjustments, while being mindful of the long-term growth opportunities we see in our customer segments.
Ongoing growth investments in segments including Medical, Industrial Heating, Nuclear and Chemical and Petrochemical are proceeding according to plan. We are also still seeing a growing global need for energy, energy efficiency and countries’ pursuit of a stable and reliable energy supply. Accordingly, our long-term view of the performance of our high value-added niche in the oil and gas market remains positive. We also have a positive view of the development in key segments like Nuclear and Medical.
Göran Björkman, President and CEO
Conference call and webcast
A webcast and conference call will be hosted on July 18, 2025 at 1 pm CET. More information and a presentation will be available at www.alleima.com/investors
Dial-in details for the conference call
—Sweden: +46 (0) 8 5051 0031
—UK: +44 (0) 207 107 06 13
—US: +1 (1) 631 570 56 13
Link to webcast
Sandviken, July 18, 2025
Alleima AB (publ)
Contact details
Emelie Alm, Head of Investor Relations
Emelie.alm@alleima.com
Phone: +46 (0) 79060 87 17
Yvonne Edenholm, Press and Media Relations Manager
Yvonne.edenholm@alleima.com
Phone: +46 (0) 72145 23 42
About Alleima
Alleima, is a global manufacturer of high value-added products in advanced stainless steels andspecial alloys as well as solutions for industrial heating. Based on long-term customer partnerships and leading materials technology, we develop products for the most demanding applications and industries. Our offering includes products likeseamless steel tubes for the energy, chemical and aerospace industries, precision strip steel for white goods compressors, air conditioners and knife applications, based on more than 900 active alloy recipes. It also includes ultra-fine wires for medical and micro-electronic devices, industrial electric heating technology and coated strip steel for fuel cell technology for cars, trucks, and hydrogen production. Our fully integrated value chain, from R&D to end-product, ensures industry-leading technology, quality, sustainability, and circularity. Alleima, with headquarter in Sandviken, Sweden, had approximately 6,500 employees and revenues of about 20 billion SEK in about 80 countries in 2024. The Alleima share was listed on Nasdaq Stockholm’s Large Cap list on August 31, 2022 under the ticker ‘ALLEI’. Learn more atwww.alleima.com.
This information is information that Alleima AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 11.30 AM CET on July 18, 2025.
Ämnen i artikeln
Alleima interim report Q2 2025
18 juli, 11:30
Alleima interim report Q2 2025
Resilient underlying profitability despite declining revenues
Q2 2025 highlights
—Order intake for the rolling 12-month period decreased by 6% to SEK 18,911 million (20,135), with organic growth of -2%.
—Revenues decreased by 11% to SEK 4,765 million (5,359), with organic growth of -4%.
—Adjusted operating profit (EBIT) amounted to SEK 454 million (592), with a margin of 9.5% (11.1), and included currency effects of SEK -115 million compared with the year-earlier period.
—Operating profit (EBIT) totaled SEK 282 million (689), with a margin of 5.9% (12.8), and included metal price effects of SEK -171 million (96).
—Adjusted earnings per share, diluted, was SEK 1.35 (2.23).
—Earnings per share, diluted, was SEK 0.81 (2.54).
—Free operating cash flow amounted to SEK 347 million (486).
CEO’s comment
Market conditions
The mixed market conditions continued during the quarter, and the advantages of our broad exposure were clear. Activity levels remained high in the Oil and Gas and Nuclear segments in the Tube division and in the Medical segment in the Kanthal division. Demand in the Strip division leveled off somewhat compared with the preceding quarter, but is still at a favourable level.
The market conditions in other customer segments were generally hesitant, driven by higher uncertainty resulting from trade policy turbulence. This was particularly noticeable in the project-related parts of our business, with customers being cautious about making major investment decisions. In the Tube division, demand was generally lower in the Chemical and Petrochemical and Industrial segments, with the largest decline in Europe. Demand in the Industrial Heating segment in Kanthal remained at a low level.
Order intake for the rolling 12-month period amounted to SEK 18,911 million (20,135) and organic growth was -2%.
Resilient underlying profitability
Revenues declined organically by 4% during the quarter to SEK 4,765 million (5,359). These lower revenues were mainly related to the short-cycle and low-refined business, in the Industrial segment and the Chemical and Petrochemical segment in the Tube division. Lower revenues for the Industrial Heating segment in Kanthal also added to this development.
Adjusted EBIT amounted to SEK 454 million (592), corresponding to a margin of 9.5% (11.1), and included currency headwinds of SEK -115 million compared with the year-earlier period. The EBIT margin excluding currency effects amounted to 11.4%, thereby demonstrating resilience despite lower revenues.
Free operating cash flow amounted to SEK 347 million (486), impacted by lower operating profit and higher growth investments.
Negligible direct impact from tariffs and trade barriers
We have local production in our largest regions for most of our businesses, including the US. We were successful at passing on the cost of tariffs to our customers, which meant that we did not note any significant negative direct impact from import tariffs to the US. However, we did see a greater impact on the global economy and demand resulting from delayed investment decisions among some customers, as described above.
Planned maintenance stoppage during the summer
We usually carry out planned maintenance stoppages in our production in the third quarter. This summer, we will replace our expansion press and the stoppage will therefore be longer than normal at one of the largest production sites in Sandviken. The new press has a higher degree of automation and will, among other things, increase productivity and improve safety for the operators.
Continued investments and adjustments
Moving forward, we need to remain agile in order to maintain a solid level of profitability in a turbulent market. We are making the necessary adjustments, while being mindful of the long-term growth opportunities we see in our customer segments.
Ongoing growth investments in segments including Medical, Industrial Heating, Nuclear and Chemical and Petrochemical are proceeding according to plan. We are also still seeing a growing global need for energy, energy efficiency and countries’ pursuit of a stable and reliable energy supply. Accordingly, our long-term view of the performance of our high value-added niche in the oil and gas market remains positive. We also have a positive view of the development in key segments like Nuclear and Medical.
Göran Björkman, President and CEO
Conference call and webcast
A webcast and conference call will be hosted on July 18, 2025 at 1 pm CET. More information and a presentation will be available at www.alleima.com/investors
Dial-in details for the conference call
—Sweden: +46 (0) 8 5051 0031
—UK: +44 (0) 207 107 06 13
—US: +1 (1) 631 570 56 13
Link to webcast
Sandviken, July 18, 2025
Alleima AB (publ)
Contact details
Emelie Alm, Head of Investor Relations
Emelie.alm@alleima.com
Phone: +46 (0) 79060 87 17
Yvonne Edenholm, Press and Media Relations Manager
Yvonne.edenholm@alleima.com
Phone: +46 (0) 72145 23 42
About Alleima
Alleima, is a global manufacturer of high value-added products in advanced stainless steels andspecial alloys as well as solutions for industrial heating. Based on long-term customer partnerships and leading materials technology, we develop products for the most demanding applications and industries. Our offering includes products likeseamless steel tubes for the energy, chemical and aerospace industries, precision strip steel for white goods compressors, air conditioners and knife applications, based on more than 900 active alloy recipes. It also includes ultra-fine wires for medical and micro-electronic devices, industrial electric heating technology and coated strip steel for fuel cell technology for cars, trucks, and hydrogen production. Our fully integrated value chain, from R&D to end-product, ensures industry-leading technology, quality, sustainability, and circularity. Alleima, with headquarter in Sandviken, Sweden, had approximately 6,500 employees and revenues of about 20 billion SEK in about 80 countries in 2024. The Alleima share was listed on Nasdaq Stockholm’s Large Cap list on August 31, 2022 under the ticker ‘ALLEI’. Learn more atwww.alleima.com.
This information is information that Alleima AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 11.30 AM CET on July 18, 2025.
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