Granges AB

Latest Results (20.01.2026):

Gränges AB — Q3 2025: The company reported strong volume-driven growth in the third quarter of 2025, with sales volume up 25% to 153.4 ktonnes and net sales of SEK 6,933 million (+21% year‑on‑year). Adjusted operating profit was SEK 398 million (down 5% vs Q3 2024) and adjusted operating profit per tonne was 2.6 kSEK. Profit for the period was SEK 253 million (SEK 2.27 diluted EPS). Operating cash flow remained robust at SEK 317 million. The quarter was characterised by market‑share gains and the ramp‑up of the Shandong facility, partly offset by higher scrap costs and currency headwinds.

Key financials (Q3 2025)

Sales volume 153.4 ktonnes (+25% vs Q3 2024). Net sales SEK 6,933m (+21%). Adjusted operating profit SEK 398m (420). Adjusted operating profit per tonne 2.6 kSEK (3.4). Profit for the period SEK 253m (285). Diluted EPS SEK 2.27 (2.67). Operating cash flow SEK 317m (275). Q1–Q3 2025: sales volume 464.2 ktonnes, net sales SEK 21,140m, adjusted operating profit SEK 1,242m.

Drivers of performance

Strong market‑share gains in all regions and new business (notably EV‑related in Asia) delivered the volume growth. The Shandong plant ramp‑up materially increased Asia volumes. Volume and price increases plus productivity gains supported revenues, while higher aluminium scrap costs (including effects from new US import tariffs) and SEK43m currency translation headwinds weighed on margins.

Regional highlights

Gränges Americas: Q3 volume 59.7 ktonnes; adjusted operating profit SEK 284m; price increases and productivity offset scrap and inflation in local currency. Gränges Asia: Q3 volume 49.9 ktonnes (up 88%), adjusted operating profit SEK 94m — strong contribution from Shandong ramp‑up and EV business. Gränges Europe: Q3 volume 49.0 ktonnes, adjusted operating profit SEK 65m; weak end markets but share gains supported growth.

Cash, capex and balance sheet

Q3 capex SEK 170m (SEK 141m maintenance/efficiency, SEK 29m expansion). Operating cash flow positive and improving net debt: financial net debt SEK 3,825m (1.6x adjusted EBITDA on Sept 30, 2025). Cash and cash equivalents SEK 679m (SEK 850m at Dec 31, 2024). Return on capital employed (rolling 12m) 10.8%.

Sustainability and recycling

Total carbon intensity (scope 1+2+3) improved to 7.4 tCO2e/tonne (‑5% vs prior quarter comparison) and remains on a multi‑year decline vs baseline 2017. Recycling volume reached a rolling 12‑month record of 258 ktonnes, but the share of sourced recycled aluminium fell to 43.4% (47.4%) due to a tight scrap market and increased use of low‑carbon primary aluminium.

Outlook and management comment

Management expects continued strong year‑on‑year sales volume growth driven by ongoing market‑share gains. Gränges Asia is expected to remain at or above a ~50 ktonnes run‑rate. The company cautioned that HVAC and automotive demand is softer and Q4 is seasonally the most difficult quarter, but highlighted confidence in cash generation, pricing and productivity to offset external headwinds.

Other notable items

Q3 translation effects reduced net sales by SEK ~420m year‑on‑year; Q3 tax effective rate ~20%. New operating segment reporting (Americas, Asia, Europe) implemented from Q1 2025. No significant events after the period.