Latest news with #TrelleborgAB
Business Insider
26-04-2025
- Business
- Business Insider
Kepler Capital Keeps Their Hold Rating on Trelleborg AB (0NL3)
In a report released on April 24, Johan Sjoberg from Kepler Capital maintained a Hold rating on Trelleborg AB (0NL3 – Research Report), with a price target of SEK355.00. The company's shares closed last Thursday at SEK324.45. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. According to TipRanks, Sjoberg is an analyst with an average return of -4.6% and a 28.79% success rate. Trelleborg AB has an analyst consensus of Moderate Buy, with a price target consensus of SEK388.33, implying a 19.69% upside from current levels. In a report released on April 17, Citi also maintained a Hold rating on the stock with a SEK350.00 price target.
Yahoo
31-01-2025
- Business
- Yahoo
Trelleborg AB (TBABF) Q4 2024 Earnings Call Highlights: Record Cash Flow and Strategic Growth ...
Organic Sales Growth: 4% increase in Q4. EBITA: Almost SEK1.6 billion, with a margin of 18.1%. Cash Flow: Strongest cash flow quarter ever for the company. Revenue: SEK8.783 billion for the quarter, up 4% from SEK8.421 billion. Net Debt: SEK6.735 billion at the end of the quarter. Return on Capital Employed: 12%. Earnings Per Share: Increased from 4.08% to 4.24% excluding items affecting comparability. CapEx Guidance for 2025: SEK1.650 billion. Restructuring Costs Guidance for 2025: SEK300 million. Amortization of Intangibles Guidance for 2025: SEK650 million. Underlying Tax Rate Guidance for 2025: 25%. Warning! GuruFocus has detected 2 Warning Sign with NXT. Release Date: January 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Trelleborg AB (TBABF) reported a 4% organic sales growth in Q4, driven by increased project sales and successful M&A activities. The company achieved its highest ever EBITA margin for a fourth quarter at 18.1%, indicating improved operational efficiency. Strong cash flow generation was noted, marking the strongest cash flow quarter ever for Trelleborg AB (TBABF). The company successfully integrated several acquisitions, such as the Baron Group, contributing to a significant jump in profitability for the medical solutions segment. Trelleborg AB (TBABF) continues to make progress in sustainability, with a substantial improvement in CO2 emissions and an increase in the share of renewable and fossil-free electricity to 88%. The construction segment remains challenging, particularly in North America, impacting the industrial solutions business area. Organic sales growth was flat in the medical solutions segment, with some inventory reductions at customer sites. Sealing solutions faced a small decrease in organic sales, with core segments like off-highway and construction equipment still experiencing depressed demand. The company anticipates a lower run rate for medical solutions in Q1 2025 due to seasonal factors in China and Australia. Despite strong performance, the company acknowledges uncertainty in certain markets, particularly due to geopolitical factors, which could impact future growth. Q: Can you elaborate on the impact of your investments in greenfields and brownfields on margins as they come on stream in 2025? Also, did the marine projects in industrial solutions come with a positive margin mix? A: Peter Nilsson, CEO: The initial impact of these investments will be minimal on group margins, with some challenges in specific business units. We expect these projects to be well-loaded from the start, minimizing operational issues. Regarding the marine projects, they do not inherently have a better margin but contribute positively due to their volume. Q: Could you provide more details on the underlying market activities, particularly in China, and the strong margin development in medical solutions? A: Peter Nilsson, CEO: We don't see pre-buy activities ahead of potential tariffs. Growth in China is strong, driven by market share gains rather than stimulus. In medical solutions, further margin improvements are not the primary focus; instead, we aim for sales growth through global customer support. Q: Regarding sealing solutions, how do you view the cycle in off-highway construction, and what is the outlook for Q1? A: Peter Nilsson, CEO: We believe we are at the low end of the cycle, with underproduction by OEMs. We expect improvement as inventory levels normalize. For Q1, we anticipate a flattish performance, with slight improvements in LNG marine construction. Q: Can you discuss the momentum in aerospace and how you managed the Boeing issues? A: Peter Nilsson, CEO: Aerospace demand remains strong, with order growth from customers. We managed Boeing issues well due to continued demand for our products. The aftermarket segment is also growing, providing additional opportunities. Q: What are the valuation multiples and profitability of recent bolt-on acquisitions? A: Peter Nilsson, CEO: We typically acquire at single-digit EBITA multiples. These acquisitions generally have lower margins initially but offer synergies that align them with our overall margin over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
