Alleima

Q1 2025 highlights

—    Order intake for the rolling 12-month period decreased by 2% to SEK 19,962 million (20,362), with organic growth of 1%. The backlog remained solid with a good product mix.

—    Revenues increased by 9% to SEK 5,150 million (4,740), with organic growth of 8%.

—    Adjusted operating profit (EBIT) amounted to SEK 540 million (453), with a margin of 10.5% (9.6).

—    Operating profit (EBIT) amounted to SEK 513 million (126), corresponding to a margin of 10.0% (2.7), and included metal price effects of SEK -27 million (-328).

—    Adjusted earnings per share, diluted, was SEK 1.65 (1.24).

—    Earnings per share, diluted, was SEK 1.57 (0.21).

—    Free operating cash flow amounted to SEK 46 million (159).

CEO’s comment

Market conditions

Activity levels for the quarter, for example in the Oil and Gas and Nuclear segments in the Tube division, were high, and continued recovery was noted in the Industrial segment in North America. In the Kanthal division, the Medical business continued its positive development while demand in Industrial Heating remained cautious. Demand in the Strip division further strengthened across the board. We did not note any observable effects related to the changing situation regarding global  trade barriers, either during or after the end of the quarter. However, the general uncertainty around future development and customers’ investment decisions has increased.

Order intake for the rolling 12-month period amounted to SEK 19,962 million (20,362) and organic growth turned positive at 1%. This trend was attributable primarily to higher order intake in the Tube division’s Nuclear segment as well as in Kanthal’s Medical segment, and many parts of our business showed a positive development.

Increased revenues and an improved EBIT-margin

Revenues for the quarter increased organically by 8% to SEK 5,150 million (4,740). Nearly all customer segments reported growth, but Kanthal’s Industrial Heating segment remains at low levels. The adjusted EBIT margin amounted to 10.5% (9.6). We have good operational leverage on our increased revenues and we are improving our margin despite slight currency headwinds in the quarter.

Free operating cash flow amounted to SEK 46 million (159) in the quarter, impacted by increased sales volumes, inventory build-up ahead of planned stoppages for maintenance during the summer, as well as increased growth investments.

Proven resilience and adaptability

We have tailwinds in most of our business through our exposure to underlying megatrends. Examples of these include growing need for energy, energy efficiency and countries securing a stable and reliable energy supply, as well as a growing need for health care. In recent quarters, we clearly benefited from our good positioning and delivered stable financial results. Over time, the EBIT margin has also improved despite challenging market conditions in several areas. We have acted quickly by implementing measures in parts of our business, to mitigate the effects of lower volumes.

Broad geographical production footprint

Our strategy involves being close to our customers and ensuring that we have local production where possible. With regards to the Tube division, for example, we are the only ones in our niche  of the market for advanced stainless steel to have extrusion presses – meaning we have the possibility of manufacturing advanced seamless tubes, on three continents: Europe (Sweden), North America (US) and Asia (India). Also, in the Kanthal division, we are close to our customers with local production and refinement in key markets. We are strengthening this further through ongoing investments. Our broad geographical production footprint enables close collaboration with customers, shorter lead times and also provides some protection against trade barriers.

A solid backlog

Unpredictability in the market increased given geo political and trade policy turbulence, even  though we did not note any direct impact on our business. It is difficult to foresee how we, and the global economy, will be impacted by the trade barriers that are now being established between regions, but we have prepared mitigation plans depending on what effects we might see going forward. The fact that our backlog in several of our key segments like Oil and Gas, Nuclear and Medical, is solid for the foreseeable future is reassuring. We are keeping our focus on our ongoing growth initiatives, which over the long term will benefit attractive customer segments through expanded local capacity, in order to achieve greater profitability and lower volatility. For example, this involves ongoing expansions in Medical in Malaysia, Industrial Heating in Japan and Scotland, steam generator tubing for Nuclear in Sandviken, and Chemical and Petrochemical in China. At the same time, we are prepared to quickly adjust our capacity and cost base in accordance with changing market conditions.

Göran Björkman, President and CEO

Conference call and webcast

A webcast and conference call will be hosted on April 23, 2025 at 1 pm CEST. 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

—    Webcast

Sandviken, April 23, 2025

Alleima AB (publ)

Contact details

Emelie Alm, Head of Investor Relations
Emelie.alm@alleima.com
Phone: +46 (0) 79 060 87 17

Yvonne Edenholm, Press and Media Relations Manager
Yvonne.edenholm@alleima.com
Phone: +46 (0) 72 145 23 42

About Alleima
Alleima, is a global manufacturer of high value-added products in advanced stainless steels and special 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 like seamless 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 at www.alleima.com.

This information is information that Alleima AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11.30 AM CEST on April 23, 2025.