Trelleborg reports strong third quarter despite currency headwinds

Trelleborg, Sweden – Trelleborg Group has reported a strong third quarter with higher sales and operating profit reported across its three segments.

In what it described as “strongest third quarter on record,” the Swedish group increased sales by 1% to SEK8.5 billion (€778 million), reflecting a 4% improvement in organic sales, offset by a 6% currency headwind.

Earnings (EBITA, excluding items affecting comparability) rose 5% year-on-year to SEK1.5 billion and the corresponding margin amounted to 18.1%, up from 17.3% in the third quarter of 2024.

Trelleborg Industrial Solutions reported positive organic sales compared with the same period last year but net sales were flat at SEK3.6 billion due to negative currency effects.

Segment earnings grew marginally to SEK553 million.

According to president and CEO Peter Nilsson, several market segments in diversified industrials performed well, while project sales to the oil & gas industry declined – mainly due to high comparison figures last year.

Deliveries to the construction industry improved sequentially but remained below the level of the preceding year.

Sales to the automotive industry increased, supported by robust demand in Asia.

Trelleborg Medical Solutions posted a 3% increase in sales to SEK880 million, partly driven by major project deliveries that Trelleborg said “are not expected to be repeated in the next quarter.”

The segment’s earnings increased from SEK165 million in third quarter 2024, to SEK181 million this year.

In Europe, sales to medtech customers developed positively, while deliveries to the smaller life sciences segment increased “significantly,” according to the group.

Trelleborg Sealing Solutions saw earnings grow 6% year-on-year to SEK875 million, on 2.5% higher sales of SEK4.2 billion.

The group linked the “solid” growth to the performance of the division’s industrials segment both Europe and Asia, and despite weak demand in North America.

The automotive demand showed “an overall decline, mainly due to a softer aftermarket,” while Asia “developed strongly.”

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

During the quarter, TSS completed the acquisition of Masterseals, a Singapore-based company specialising in sealing solutions for the energy sector and industrial applications.

According to Nilsson, the group has completed 10 bolt-on acquisitions since the third quarter of last year.

Many of these acquisitions initially have a dampening effect on profitability, he explained. 

According to the group leader, Trelleborg’s rate of investment “is higher than ever, with the establishment of operations in new countries, capacity increases and technological upgrades to current operations.”

In the fourth quarter, Trelleborg said it has planned factory inaugurations in Vietnam and Costa Rica, alongside expansions and upgrades of existing manufacturing units.