Gränges’ half-year report 2025: Strong growth and good cash flow

Second quarter 2025

• Sales volume increased by 22 percent to 159.1 ktonnes (130.9).
• Adjusted operating profit was SEK 436 million (471) and adjusted operating profit per tonne was 2.7 kSEK (3.6).
• Profit for the period amounted to SEK 293 million (314) and diluted earnings per share was SEK 2.62 (2.94).
• Operating cash flow increased to SEK 445 million (298).
• Return on capital employed was 11.2 percent (11.9 on December 31, 2024).
• Financial net debt was 1.6x adjusted EBITDA (1.8x on December 31, 2024).
• Excluding Shandong, total carbon emissions intensity (scope 1+2+3) was 6.9 tonnes CO2e/tonne (7.0), and the share of sourced recycled aluminium was 46.1 percent (46.6).

First half-year 2025

• Sales volume increased by 23 percent to 310.8 ktonnes (252.8).
• Adjusted operating profit increased to SEK 844 million (827) and adjusted operating profit per tonne was 2.7 kSEK (3.3).
• Profit for the period increased to SEK 554 million (551) and diluted earnings per share amounted to SEK 4.95 (5.16).
• Operating cash flow increased to SEK 466 million (289).
• Excluding Shandong, total carbon emissions intensity (scope 1+2+3) was 7.2 tonnes CO2e/tonne (7.2), and the share of sourced recycled aluminium was 44.8 percent (46.0).
• New operating segments established – Gränges Americas, Gränges Asia, and Gränges Europe.

Comments by Gränges’ CEO Jörgen Rosengren: Continued strong volume growth and good cash flow
In the second quarter, Gränges delivered strong growth in a market environment that remained complex. Demand was good in HVAC and stable in Specialty packaging and Other niches, while conditions in Automotive remained soft. Thanks to market share gains in all regions and the successful business ramp-up in Asia, sales volume grew by 22 percent year-on-year.

In Gränges Americas, sales volume was in line with last year, as market share gains offset some customer destocking in Specialty packaging. Price increases compensated for higher market prices for aluminium scrap and other cost increases, keeping operating profit at the same high level as last year in constant currency. In Gränges Asia, sales volume increased by an impressive 94 percent, driven by market share gains. These were made possible by the successful integration and ramp-up of our new plant in Shandong. The new unit contributed to a good increase in operating profit in Gränges Asia. Gränges Europe also took market share in a mixed market environment. However, sales volume grew modestly due to operational issues affecting deliveries in the quarter. The low growth, combined with higher cost for aluminium scrap and market premiums caused the operating profit to decline in constant currency.

In summary, the Group’s result was positively affected by volume growth and improved price and productivity. Higher cost for aluminium scrap and timing effects on European metal premiums, an indirect result of the new US import tariffs on aluminium, burdened the result. Nevertheless, operating profit in constant currency increased by 5 percent over last year’s record quarter. After a negative currency impact of SEK 58 million, most of which was caused by translation effects, the adjusted operating profit declined to SEK 436 million (471).

Operating cash flow in the quarter was quite strong thanks to good control of net working capital and modest capital expenditure. This helped reduce net debt. We see the good cash flow as an encouraging first sign of an anticipated phase of stronger cash generation, now that our multi-year capex expansion program is being completed.

We also made good progress towards our sustainability goals, with all-time-low carbon footprint and record-high recycling on a like-for-like basis, enabled by innovation, operational improvements and strategic partnerships.

All in all, we once again demonstrated the strength of our strategy and our ability to deliver.

Continued strong volume growth expected
We expect continued strong volume growth in the third quarter. As before, we aim to retain the approximately 20–25 ktonnes of additional quarterly sales volume in Shandong. For the other units, we expect mid-to-high single-digit volume growth. We intend to offset any external pressure with continued growth, price increases and productivity improvements, but do expect a negative currency translation effect. Capacity expansion capex will continue down in the second half of 2025. This will strengthen operational cash flow and our balance sheet.

I would like to extend my sincere thanks to the colleagues, customers, strategic partners and shareholders who continue to support our strong performance and long-term industry leadership ambition.

Webcasted presentation
CEO Jörgen Rosengren and CFO Oskar Hellström will present Gränges’ half-year report 2025 at a webcasted conference call Friday July 11, 2025, at 10.00 CEST. Join the live webcast here. To participate in the Q&A following the presentation, please register here. Upon registration, phone numbers and a conference ID to access the call will be provided. Please dial in a few minutes before the start of the webcast. The presentation will be in English.