Sweden · Delayed Price · Currency is SEK HEXPOL AB Earnings Call Transcripts
Fiscal Year 2026
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Strong organic sales growth of 8% in Q2 was driven by higher volumes and market share gains, with Thermoplastic Compounding showing standout performance. Despite raw material volatility and higher OpEx, adjusted EBIT and cash flow remained robust, and the financial position is strong.
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Q1 saw higher volumes and defended market share, but sales and EBIT declined year-over-year due to negative FX and price/mix effects. Price increases to offset rising costs will take effect in Q2, and M&A activity remains high with a strong financial position maintained.
Fiscal Year 2025
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Q4 sales declined 9% year-over-year due to FX and mix, but volumes increased in key segments. EBIT margin fell to 12%, while cash flow remained strong and the dividend was maintained. Market uncertainty persists, but strategic investments and sustainability targets are on track.
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Management outlined a strategy for accelerated growth, targeting a 10%+ EPS CAGR through organic expansion and a stepped-up M&A agenda, especially in thermoplastics and Asia. Financial targets were updated, with a focus on operational excellence, sustainability, and leveraging a strong balance sheet for acquisitions.
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Q3 sales declined 6% year-over-year to SEK 4.7 billion, with stable performance in Europe but ongoing challenges in North America due to geopolitical uncertainty and weak automotive demand. Acquisitions contributed positively, while EBIT margin fell to 14.7% and cash flow remained strong.
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Q2 saw stable sales in Europe and growth in Engineered Products, but North America lagged due to trade policy uncertainty. Strong cash flow and a solid balance sheet support ongoing M&A, while the company remains resilient amid market volatility.
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Q1 2025 saw stable sales and improved cash flow, with strong growth in engineered products and infrastructure-driven construction demand offsetting automotive weakness. Kabkom and Almaak acquisitions strengthen the portfolio, while U.S. tariffs and raw material costs remain key uncertainties.
Fiscal Year 2024
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Q4 sales declined 4% year-over-year to SEK 4.7 billion, with lower volumes and margins in North America due to weak automotive demand, but strong cash flow and a 5% dividend increase were reported. Efficiency measures and the Piedmont acquisition support future growth.
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Q3 saw a 9% sales decline year-over-year, mainly from weaker automotive demand, but margins remained solid at 16.1%. Building and construction showed improvement, and strong cash flow and balance sheet support ongoing M&A and sustainability initiatives.
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Q2 saw stable margins and profitability despite a 5% sales decline, with EBIT margin rising to 16.7%. Demand and prices remained steady, sustainability initiatives progressed, and the financial position stayed strong.