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1. Company Snapshot

1.a. Company Description

Trelleborg AB (publ) develops, manufactures, and sells engineered polymer solutions for seal, damp, and protect critical applications worldwide.The company offers anti-vibration solutions, including anti-vibration and suspension products, as well as buffers and pads, and cable entry products; boots for transmission, steering gear, and shock absorption applications; bearings and bushings; engineered coated fabrics; engineered molded parts; fenders, docking, and mooring; floatover; and fluid handling solutions.It also provides health and medical; offshore; pipe seals and repair; printing; sealing profiles; sealing; rubber; tunnel seals; wear protection; and wheels and tires solutions.


In addition, the company offers tire fitting services; bridge bearings; bridge expansion joints; cable and rubber compounds; downhole; flexible containment; electrical protection; embedded rail system; flat gaskets; grout seals; inflatable; milk liners; and noise and vibration damping solutions.Further, it provides oil sand; rubber flooring; seismic; ship fenders; squeegees; and truck and diesel solutions.Trelleborg AB (publ) was founded in 1905 and is headquartered in Trelleborg, Sweden.

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1.b. Last Insights on TREL

Trelleborg's recent performance has been driven by steady business conditions. The company's valuation appears attractive, with investors reassessing its prospects. A recent earnings release showcased the company's resilience, with no major concerns raised. Additionally, Trelleborg's cash flow projections indicate a positive outlook. According to recent reports, the company's long-term growth prospects remain intact, with an impressive 164.9% surge over the past five years. Trelleborg's ability to maintain stability has caught the attention of investors.

1.c. Company Highlights

2. Trelleborg's Q4 2025: Margin Improvement and Strong Cash Flow

Trelleborg's Q4 2025 report shows a mixed performance, with sales at SEK 8,380 million, down 5% due to a 9% negative translation effect, but organic sales growth was 1%. The EBITA margin reached a record high of 18.4%, driven by good cost control and mix. Earnings per share (excluding items affecting comparability) came in at SEK 4.30, up 1%. However, actual EPS was SEK 3.7, below estimates of SEK 4.57. The company's cash flow was strong, with SEK 1.726 billion in Q4, and a cash conversion ratio of 93% on a rolling 12-month basis.

Publication Date: Feb -09

📋 Highlights
  • Record Q4 EBITA Margin:: Achieved 18.4%, driven by cost control and mix improvements, the highest in the company's Q4 history.
  • Strong Cash Flow Performance:: Generated SEK 1.726 billion in operating cash flow (up 3%) with a 93% cash conversion ratio over 12 months.
  • Organic Sales Growth Amid FX Headwinds:: 1% organic sales growth despite a 9% translation impact, with Sealing and Medical Solutions driving expansion.
  • Dividend and Buyback Commitment:: Proposed dividend increase to SEK 8/share and sustained SEK 500 million quarterly share buybacks into 2026.
  • 2026 Margin and Growth Outlook:: Guidance for low single-digit organic growth in Q1, with confidence in H2 margin improvement and solid order intake (book-to-bill ratio >100%).

Segment Performance

The company's segment performance was varied, with organic sales growth in Sealing Solutions and Medical Solutions, but a decline in Industrial Solutions due to lower project deliveries. Medical Solutions grew 6% organically in 2025 and expects 5% growth in 2026, driven by a better setup and capacity in Costa Rica. Industrial Solutions expects continued margin improvement, driven by a solid order book and improved demand across areas.

Guidance and Outlook

The company guides for a soft start to 2026, with low single-digit organic growth, but is not concerned about the full year. CapEx is expected to be SEK 1.450 billion, and restructuring costs are expected to be SEK 375 million. The company also expects an underlying tax rate of 25%. The Board proposes a dividend increase from SEK 7.50 to SEK 8, and share buybacks continue at a pace of around SEK 0.5 billion per quarter.

Valuation

With a P/E Ratio of 24.42 and an EV/EBITDA of 12.79, the stock appears to be fairly valued. The Dividend Yield is 1.93%, and the Free Cash Flow Yield is 4.11%. The company's ROIC is 9.33%, and ROE is 9.65%. Analysts estimate next year's revenue growth at 5.0%, which is slightly higher than the company's guidance.

Capital Allocation

The company prioritizes growth and cost control, expecting a better H2 2026. It focuses on bolt-ons, not large deals, and aims to strengthen current positions. The order intake is building, with a book-to-bill ratio above 100%, specifically mid-single-digit growth in Industrial Solutions.

3. NewsRoom

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Trelleborg AB (TBABY) Q4 2025 Earnings Call Highlights: Record EBITDA Margin and Strategic ...

Jan -29

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Assessing Trelleborg (OM:TREL B) Shares After Recent Flat Trading And A Mild Undervaluation Estimate

Jan -15

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Traffic Safety Equipment Market - Global Forecast 2025-2032: Coverage of 3M, Swarco, Avery Dennison, Brady Worldwide, Siemens Mobility, Econolite, Kapsch TrafficCom, Iteris, Trelleborg, and Lindsay

Jan -13

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Polymer Foam Market Size | Companies Analysis 2025- 2034

Nov -03

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UAE OTR Tire Market Forecast & Opportunities Report 2025, Competitive Analysis of Yokohama, Trelleborg, Michelin, Balkrishna, Continental, Goodyear, Bridgestone, TVS Srichakra, Apollo, Peltas

Oct -30

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Trelleborg AB (STU:TLLB) Q3 2025 Earnings Call Highlights: Record EBITDA Margin and Strong Cash ...

Oct -24

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Assessing Trelleborg Shares After Recent Steady Performance and Latest Cash Flow Projections

Sep -15

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LVMH: Share transactions disclosure

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.65%)

6. Segments

Trelleborg Sealing Solutions

Expected Growth: 2.5%

Trelleborg Sealing Solutions' 2.5% growth is driven by increasing demand for sustainable sealing solutions in the renewable energy and electric vehicle markets, as well as expansion in emerging markets, particularly in Asia. Additionally, the company's focus on innovation and R&D investments in digitalization and Industry 4.0 technologies contribute to its growth momentum.

Trelleborg Industrial Solutions

Expected Growth: 2.8%

Trelleborg Industrial Solutions' 2.8% growth is driven by increasing demand for industrial components, particularly in the automotive and aerospace industries. The segment's focus on innovative materials and solutions, such as polymer-coated fabrics and advanced sealing technologies, also contributes to its growth. Additionally, strategic acquisitions and expansion into emerging markets have further boosted the segment's performance.

Group Activities

Expected Growth: 3.2%

Trelleborg AB's 3.2% growth in Group Activities is driven by increasing demand for engineered polymer solutions in the automotive and industrial segments, coupled with strategic acquisitions and expansion into emerging markets. Additionally, the company's focus on innovation and R&D investments has led to the development of new, high-margin products, contributing to top-line growth.

7. Detailed Products

Sealing Solutions

Trelleborg's Sealing Solutions provide a wide range of seals, bearings, and assemblies for various industries, including aerospace, automotive, and industrial manufacturing.

Wheel Systems

Trelleborg's Wheel Systems offer a comprehensive range of wheels, tires, and wheel systems for agricultural, construction, and industrial applications.

Printed Electronics

Trelleborg's Printed Electronics provide innovative, flexible, and customizable electronics solutions for various industries, including healthcare, aerospace, and automotive.

Industrial Anti-Vibration Mounts

Trelleborg's Industrial Anti-Vibration Mounts offer a range of vibration isolation mounts and suspension systems for industrial applications.

Marine Fenders

Trelleborg's Marine Fenders provide a range of fender systems for docking and mooring applications in the marine industry.

Offshore Oil and Gas Solutions

Trelleborg's Offshore Oil and Gas Solutions offer a range of products and services for the offshore oil and gas industry, including buoyancy modules and cable protection systems.

8. Trelleborg AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Trelleborg AB (publ) is medium due to the availability of alternative materials and products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of large and established customers in the automotive and industrial segments.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market, but some suppliers have a higher bargaining power due to their size and market share.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including high capital requirements and the need for specialized technology and expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to a competitive landscape.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.33%
Debt Cost 9.97%
Equity Weight 85.67%
Equity Cost 9.97%
WACC 9.97%
Leverage 16.72%

11. Quality Control: Trelleborg AB (publ) passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Jungheinrich

A-Score: 5.9/10

Value: 7.9

Growth: 6.3

Quality: 7.1

Yield: 3.8

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Bucher

A-Score: 5.6/10

Value: 4.1

Growth: 3.3

Quality: 6.2

Yield: 5.6

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Mycronic

A-Score: 4.9/10

Value: 1.6

Growth: 8.1

Quality: 8.0

Yield: 3.1

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Fluidra

A-Score: 4.8/10

Value: 3.2

Growth: 6.2

Quality: 6.0

Yield: 4.4

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Trelleborg

A-Score: 4.6/10

Value: 3.5

Growth: 5.8

Quality: 6.4

Yield: 4.4

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Aalberts

A-Score: 4.0/10

Value: 4.4

Growth: 3.9

Quality: 4.0

Yield: 5.6

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

386.0$

Current Price

386$

Potential

-0.00%

Expected Cash-Flows