Trelleborg reports flat annual results despite strong fourth quarter

Trelleborg, Sweden – Trelleborg AB has reported flat full-year sales and earnings for 2024, despite strong gains in the final quarter.

Full-year earnings (EBITDA) came in at SEK6.1 billion (€532 million), up from SEK6.0 billion in 2023, the Swedish group reported 29 Jan.

Sales for the year stood at SEK34.1 billion, down slightly from SEK34.2 billion.

In the fourth quarter, however, the group saw earnings rise by 11.4% year-on-year to SEK1.6 billion, with sales up 4.3% to SEK8.7 billion.

The group achieved organic sales growth in the quarter “despite continued mixed market conditions and declining volumes in several markets,” said CEO and president Peter Nilsson.

Fourth-quarter sales were “the highest ever for a single quarter,” while operating profit and margin were “the highest to date for a fourth quarter,” Nilsson said.

He highlighted Trelleborg’s efforts to become “a less cyclical company” focused on “carefully selected applications and market segments.”

“Profitability is growing steadily toward our financial targets, despite facing market headwinds over the past year,” he added.

On acquisitions, Nilsson said the group was “reinforcing” its strategy, adding that pace of capital expenditures has "never been higher and we look to the future with confidence,” he said.

During the fourth quarter, Trelleborg completed several acquisitions, including aerospace thermoplastics supplier Magee and CRC, a US-based distributor of polymer sealing solutions.

The group also announced new capacity expansions in Costa Rica, Vietnam, and Morocco, some of which will be inaugurated in 2025 and boost Trelleborg’s position.

On the performance of each segment, the group said its Trelleborg Industrial Solutions (TIS) posted flat annual sales but saw revenue increase in the fourth quarter, driven by "major marine project transactions."

Overall, full year organic sales declined in Europe, but North America and Asia saw growth.

Deliveries to the construction sector remained challenging, mainly due to a weaker North American market.

For the full year, TIS earnings rose 3% year-on-year to SEK2.4 billion, with sales flat at SEK15.3 billion.

Trelleborg Medical Solutions (TMS) posted a 16% increase in full-year sales to SEK3 billion, supported by Baron Group’s 40% contribution.

Sales of polymer solutions to medtech firms in Europe and North America weakened, while sales to Asia rose slightly during the year.

The segment’s earnings grew to SEK529 million, up 38% compared to 2023, primarily driven by acquisitions.

Trelleborg Sealing Solutions (TSS) experienced mixed market trends, with full-year sales up 1% to SEK16.6 billion but earnings down 2% to SEK3.4 billion.

Sales in Europe were stable, grew in Asia, but declined in North America.

The industrial segment struggled for most of the year in Europe and North America.

Automotive sales were “somewhat positive,” despite a US market downturn, while aerospace shipments “continued to perform very well in all geographic markets.”

TSS earnings fell due to “challenging market conditions in several major industrial segments, leading to lower volumes and thus reduced production efficiency.”

Looking ahead, Nilsson said market conditions in the first quarter of 2025 “contain a large measure of unpredictability” but expected demand to remain similar to the fourth quarter of 2024.