Trelleborg ‘cautiously optimistic’ for H2, as sales, earnings decline marginally

Trelleborg, Sweden – Trelleborg Group has reported a slight decline in second-quarter sales and earnings, amid “continued uncertainty” driven by global geopolitical tensions and unclear future international trade terms.

Group sales declined 2% year-on-year to SEK8.55 billion (€756 million), representing a 7% negative exchange rate impact, which offset a 6% gain from “structural changes,” explained president and CEO Peter Nilsson.

Earnings (EBITDA) for the three months to end of June fell 1% to SEK1.58 billion, down from SEK1.59 billion, reflecting a SEK104 million foreign exchange impact on performance.

“The unclear trade environment adversely impacted the investment climate, promoting a cautious sentiment among companies both locally and globally,” said Nilsson 17 July.

However, he said, with the exception of the automotive industry, a general increase in business activity was noted toward the end of the period.

This, he said, gives Trelleborg reason for “cautious optimism” as it enters the second half of 2025.

According to Nilsson, the group maintained “solid profitability” and strengthened earnings margin, both sequentially and year-on-year, despite challenging market conditions and lower production volumes.

Nilsson linked the gains to “strong operational execution, with an emphasis on flexible production and a well-balanced pricing strategy.”

For the first half of the year, Trelleborg Industrial Solutions increased sales 2% year-on-year to SEK7.8 billion, while earnings grew 3% to SEK1.29 billion, despite a negative SEK41 million currency impact.

Sales within diversified industrials were mixed. Sales to certain sub-segments, including seals for the construction industry in both Europe and North America, remained weak.

Meanwhile, other sub-segments such as marine solutions, LNG projects, aerospace, and seals for water infrastructure posted solid growth.

Trelleborg Medical Solutions noted slightly lower organic sales, while acquisitions boosted first-half sales by 36% to SEK1.6 billion. Segment earnings nearly doubled to SEK341 million, up from SEK174 million reported in the first half of 2024.

The drop in organic sales, Nilsson said, was due “in its entirety to the cautious purchasing behaviour among North American medtech customers.”

In Europe, sales to medtech customers trended positively, while deliveries to the smaller life sciences segment increased sharply.

Trelleborg Sealing Solutions reported a 1% decline in overall first-half revenue to SEK8.3 billion, reflecting a 4% drop in organic sales, partially offset by acquisitions.

Earnings in the first half declined 6% year-on-year to SEK1.6 billion, due to negative exchange rate effects and lower levels of demand in certain market segments.

According to Nilsson, TSS’s lower sales were due “entirely to a clear fall-off in deliveries to the automotive industry.”

“We believe that this is related to inventory adjustments among certain major customers as a result of lower end-customer demand and increased uncertainty,” he added.

Sales to the industrial segment were unchanged overall, with strong performance in Asia offsetting somewhat lower volumes in Europe and North America.

Sales to the aerospace industry continued to show solid global growth.

“While we await clearer guidance on international trade conditions, we are continuing to focus on the factors we can influence,” said Nilsson.

The group is also strengthening its organisation with the recent opening of a medtech expansion in Malta and the planned facility inaugurations in Vietnam and Costa Rica in the second half of the year.

As for the market outlook, Nilsson said demand is expected to be “somewhat higher” compared with the second quarter, adjusted for seasonal variations.

Due to the geopolitical situation, the group said its outlook is “associated with continued uncertainty.”