Thank you and Peter Nilsson speaking. And as already stated, I am joined here on our Q2 call for 2026 by Fredrik Nilsson, who is our group CFO and also in the room here and able to support us is also Christofer Sjögren, our head of investor relations.

So presentation of our Q2 for 2026. As usual, using the presentation, which you can find on our web.

Page. Then quickly turning user presentation, turning to page 2, agenda slide.

Normal setup for us in Trelleborg, starting with general comments and highlights from the quarter. Then also some comments on the business areas individually, our 3 business areas.

And then also then Frederick, we will jump in and guide us through the financial more in detail and then finishing off with a summary from me and also some comments on the outlook for the running quarter. And then finishing off with a Q&A session.

So as usual, turning to page 3, Heading for our report this time, strong growth. And record high margin.

Sales ended up a little bit north of SEK 9 billion. increase of 7%.

And this is the highest sales we have had for a single quarter. Up to date.

Organic sales, fairly strong for us at 8%. M&A adding another 1% is points to sales and then currency headwinds still of 2%.

EBITA, up at SEK 1.76 thousand million, which is then, let's say, yeah, Notes will be higher than last year. it is also done corresponding to a margin of 19.2% which is both in terms of absolute EBIT figure and in terms of margin, the highest we have had.

A single quarter so far.

Yes. So sorry for this.

All of us. We were not aware that we were out of the call and we asked pick it up.

So we do restart of the full call. So welcome all of you.

To this Q2 presentation of Trelleborg in 2026. I am Peter Nilsson speaking, CEO, and joined here on the call is Fredrik Nilsson, our group CFO.

And also supporting us on the call is Christofer Sjögren, our head of investor relations. As usual, when we present our quarterly results, we are going to use a slide deck which has been on our web page for some time.

Or for a few hours. So that is what I am gonna refer to throughout the call.

And using that, turning then to page number 2, agenda. Page number 2, please.

So page number 2, agenda. We are talking about the highlights.

And then commenting on the business areas, then commenting on the financials Fredrik is going to guide us through that financial part of the slide deck and then finishing off with the summary and some comments on the outlook for the running quarter and then finishing off with the Q&A as usual. So then turning to Page number 3.

Heading for our report this time, strong growth, a record high margin. Coming sales in the quarter, ending up a little bit north of SEK 9 billion.

Which is an increase of 7% compared to a year ago, which is also to be noted the highest sales we have had to date for a single quarter in Trelleborg. Organic sales in the quarter ending up at a high 8%, M&A adding another 1% and then currency bringing us down with 2 percentage points.

So that is the kind of the sales development. And if you look at the results, EBITA ending up at SEK 1.761 million, which is corresponding to a margin of 19.2%%.

And both of these, both EBITA and the margin is also the highest to date for a single quarter for Trelleborg. We have some negative currency translation effect on the EBITA, which is bringing that down by SEK 24 million going down, but they have the less negative.

Earnings per share increasing more than the EBITA benefiting from improved financial net and actually increasing in the quarter by 18%. Of course, supported by the share buybacks, which I will comment on also a bit later.

Items affecting comparability, linked to restructuring and linked to integration M&A of some SEK 67 million cash flow solid cash flow, good cash flow. Bit north of SEK 1.2 billion, which is up by some 20% compared to a year ago.

Good management of working capital in a growing environment. And I mean, on rolling 12 basis, we keep the operating cash flow cash conversion above 90%.

Share buybacks continue at the same pace as been commented before. A little bit so for SEK 500 million in the quarter and also in the quarter, we announced an acquisition of a company called Gomet, an Italian company Italian based company focusing on the aftermarket of niche automotive sealing products called Boots, which is overall our position within boots is strong globally, and this is kind of adding capabilities and adding a product range more focused on the aftermarket.

it is a very good supplementary acquisition to us. Which we are going to benefit from in this niche application and this kind of what we call business unit within Trelleborg.

Turning to Page 4, commenting a little more in detail on the sales development in the quarter. We have less say, fairly solid organic growth in all main geographical markets.

Europe growing by 6%, which has got substantially higher than a year ago. Americas and Asia, both of them closed to or even slightly higher than 10%.

Good development in US and Asia, we know dissatisfaction as well. We are behind this 10% growth.

We have good growth figures both in India and in all main markets in Asia, India, China, Johan and Korea. Overall, summing up on 8% organic, so good organic sales development in the quarter, which is fairly equally spread globally as well.

Page 5. On the agenda slide, commenting on the business areas.

Quickly turning to Page 6. And commenting on Industrial Solutions, a solid organic growth.

Organic sales up by 4% and M&A adding another 1% And behind this is steel a little bit lower product deliveries in the quarter, which we have announced before. And we keep to that guidance that we it was a little bit lower in the quarter and we do expect that to pick up more here in the second part of this year.

We also note its satisfaction that we construction industry sales is actually showing some improvements. it is been a fairly bad market for quite some time.

And although running substantially below the peak a few years ago, we noted that this satisfaction that we see the first signs of an improvement. Also, performance within aerospace, within industrial, we have an exposure with our industrial solutions, although the biggest aerospace exposure within ceiling.

Solutions, but we also know the satisfaction that I get back to that later, is developing very nice in ceiling solutions and developing also nice within industrial solutions. Overall, this kind of boils down to an improvement slice slight improvement, I must say, in EBITA and margin.

Owing to higher sales volume and operating efficiency. And behind this figure is actually slightly better as we see it because also with this mix that we have mixed development within the quarter, we have had slightly negative mix on the sales development there.

So we are let's say, happy with the development in Industrial Solutions in the quarter. Also here, of course, this acquisition of GOMMET is kicking in when that being fully integrated, this government acquisition, which are already commented on, Turning to Page 7.

On Trallaborg Medical Solutions, stable organic growth. We are growing by 2% Some mixed, let's say, sales development with a good development in Europe, and North America, while Asia was temporarily somewhat lower.

Life Science segment, a smaller part of medical solutions, but the focused area for us continue to develop nicely and developing in a very robust way. Slight improvement, basically on par with last year for EBITA.

Benefiting from this slightly higher sales, well managed and good development overall. And we have a slight downturn, and that is mainly a mix effect, but no big things here.

Stable performance and solid performance. For medical solutions.

Turning to page 8. And commenting on Trelleborg ceiling solutions.

Yeah. We say very strong sales growth and also, let's say, with a nice uptick also in the EBITA.

Good development in most segments within Sealing Solutions, good development, the industrial generally, with especially good performance in Europe and Asia. Automotive actually growing very nicely for us in the quarter.

We are benefiting from our global presence, global balance within this segment and of course also as most of you are aware, development between truck and buses and also recovery in the aftermarket sales where we have been suffering a little bit the last few quarters, but that is a bounce back in this quarter. So good development overall for us within automotive, aerospace, developing very good growth on a good on a global team, which is also creating good benefits for us in the quarter.

So overall, a very good in Sealing Solutions, which is then let's say, delivering very good results. We are good very good development EBITDA and good margin and good performance overall, also creating a solid foundation for at least for the rest of the year.

Turning to Page 9, a few comments on the sustainability before entering into the financials. Continue to bring down our CO2 emissions within the group.

down by 19% year on year, solid development. Of course, as it gets lower, it gets more challenging to deliver it further.

But nevertheless, it is a high priority also going forward, and we are going to continue to improve. But although maybe not with this kind, we have seen in this quarter.

Same, Page 10, same applies here. We have also another KPI On the next page, page 10, Is there also share of electricity, which is also a good development here, where we see that we are more or less now up to 100% of all electricity.

Electricity used is coming from renewable or fossil free electricity. So but as we go close to 100, then, of course, we cannot go above 100%, so we should not expect too big improvements here.

We are gonna make sure that we keep it on this level and continue to deliver good results also in these aspects. Turning to Page 11.

And the agenda slide and financials. Turning over to Fredrik, who is then starting on Page 12.

Thank you, Peter. Starting then on Page 12, looking at the sales development.

We have reported 7% increased sales in the quarter from SEK 8.511 billion to SEK 9.161 billion, which is the highest sales for a quarter. If we look on the right-hand side of the slide, you will see an organic sales growth of 8% in the quarter with growth in all 3 business areas.

And then we have 2% negative from currency in the quarter, and M&A added 1% growth in the quarter. Moving on to page 13.

Here you can see in the second quarter, we achieved 9% sales growth at constant FX, which is above, you can say, the sales growth target we have over a business cycle. And as you can see here on the chart, that it is quite some time ago since we were above that target.

So it is nice to see that we are hitting that level. Moving on to page 14, looking at the quarterly sales for the rolling 12 months for continuing operations.

You can see here on the rolling twelves that we reached SEK 34.7 billion sick in the quarter. Moving on to Page 15, zooming in on the EBITA and the EBITA margin.

We then start with EBITA, excluding items affecting comparability, we have a nice increase of 11%, to SEK 1.761 billion. And in the quarter, as Peter mentioned, we have minus SEK 24 million in negative translation effects.

If we are then looking at the margin side, you can see a nice increase from 18.6% to 19.2%. And this was the highest margin that we have had for a quarter.

And the margin improvement was due to, first, to the good organic sales growth, but also continued operational improvements. Moving on to page 16, looking at the EBITA and the EBITA margin of rolling 12 months.

You can see an EBITA of SEK 6.430 billion and then we had a margin of 18.5% on a rolling 12 months basis. So it is an increase of 3% of the EBITA over the last 12 months, you need to have in mind that we have had significant negative translation impacts during the last 12 months.

Moving on to some details in the profit and loss statement. Looking into the items affecting comparability, we had minus SEK 67 million in the quarter, and that was entirely relating to restructuring projects.

Looking at the financial income and expenses, you can see that it was lowering from SEK 125 million negative to minus SEK 109 million. So nice improvement.

And the tax rate for the quarter at 25% which is also in line with the earlier communicated guidelines. Moving on to Page 18 looking at the earnings per share.

And if you are looking at the earnings per share excluding items affecting comparability, a good improvement from SEK 4.31 up to SEK 5.07, which was an increase by 18% and that was of course due to the higher EBITDA improved financial net and the share buybacks. Then if we include items affecting comparability, it was an improvement from SEK 4.03 to SEK 4.85.

Moving on to next page, page 19. Looking at the cash flow.

improvement of 22% in the quarter, from SEK 1 billion to SEK 1.217 billion. And then you can see here that the CapEx level has coming down, so there is a nice improvement year over year from the net CapEx and then you can see an increase on the working capital side.

And that is, of course, partly related to that you see the good organic sales growth, we tying up a little bit more in accounts receivables, and we have also temporarily built up some strategic inventory of some important raw materials. To secure that we can supply with a strong organic growth.

Moving on to page 20 looking at the cash flow conversion, and very good cash flow conversion continue. And you can see here year ago, we had 87% and now we are ending quarter with 96% cash conversion over the last 12 months.

Moving on to page 21. The gearing and the leverage development.

We are ending the quarter with an net debt of SEK 10.031 billion. And that is an increase compared to prior quarter.

But please have in mind that we paid out our dividend in late April. We have also done share buybacks of SEK 458 million in the quarter, So then zooming in on the ratios, you can see on the slide, net debt over equity, 27%.

And net debt over EBITDA, has gone up to 1.3x. In other words, our balance sheet remains strong.

Page 22, looking at the return on capital employed. You can see here for a year ago, we are at 11.6%, now we are at 12.6%.

You can see that the trend from the third quarter in 25 continue and the main reason here is the higher profitability that is improving our return on capital employed. Moving on to page 23.

The financial guidelines for the full year. it is unchanged compared to what you saw at the end of the first quarter But looking into the details here, CapEx, SEK 1.45 billion.

Restructuring cost, we expect that the year will end around SEK 375 million amortization of intangible assets, SEK 650 million, and the underlying tax rate should stay at current level of 25%. By that, I would like to hand back the microphone to Peter.

Thank you. Turning to Page 24, back to the agenda slide and going in for summary and comments on the running on the outlook for the running quarter.

Turning to Page 25. Overall, we see an improved demand in a lot of our end markets and basically struggled to see areas where we see not an improvement.

So it is looking good. And we see once again most of the areas moving in the right direction.

We also have, let's say, wide good development, all business areas recorded solid organic growth. And we also see that sales in the quarter were also the highest to date for a single quarter for us.

So good demand overall, both running quarter and also the way we look at the future. Improved earnings, we also get a reasonable good drop through on this 1, which is also so this higher sales is turning into the best EBITA and the best margin.

A single quarter that we had to date. Cash flow following, we are managing we feel we are managing the working capital in a good way in this growth environment, although let's say, we are also, of course, cautious here.

We have had some uncertainty related. I mean, I could not say that we have any problems yet, but at last, we do not know what is going to happen a little Some of the raw materials, were a bit careful building some inventory.

To make sure we get both availability and also to save a little bit of the pricing. So that is been impacting us, but good management of accounts receivable, good management of payables.

And on top of that, that we have been guiding before also CapEx is going down, which is also benefit. So good cash flow, good cash conversion, above 90% looking at the last 12 months.

Also continue to do the share buybacks of roughly 500 million per quarter, slightly lower in this quarter, but the overall kind of guidance in relation to share buybacks is the same as before. Turning to Page 26 on the outlook for the running quarter, and we should be open here that it was a little bit struggle to get it right.

We see an improved demand actually quarter on quarter. But also that we have, let's say, the comparable comparative figures actually going into Q3 is a little bit more challenging.

So you should read this that we see that the organic growth figure from 8% might not be 8% in the Q3. It will be a bump down on that, but we will still remain in a very positive territory.

So we feel confident on the demand and we have good order books going into the quarter. So happy to answer more questions about that.

But I mean, this is the way we would like to send a message. Demand is solid.

Demand is good. Demand is actually sequentially improving, but as let's say, if you are looking into Q3, we do expect the organic growth figures to be a down compared to what you saw in Q2.

And then, of course, a normal add on, we are living in a little bit uncertain territory at the moment in terms of your political situation. Of course, things might change and things might be different, but we cannot do anything about that.

And we are ready to adjust, but nevertheless, we need to add this comment to highlight the uncertainty we see around us. Turning then to Page 27 and then Q and A quickly turning to page 28, I guess.

And opening up for questions. Please go ahead.

Good afternoon. Thank you for taking my questions.

I have 3, please. Maybe just firstly on Sealing Solutions and maybe just commenting on the margin from here.

Clearly, a strong development in organic year on year and a good drop through. But perhaps if you could just shed a bit more light in terms of how we should think about the margin development as we head into a quarter with tougher comps?

Thank you.

Yes. Starting with that 1, I do not say tougher comps in that respect for TSC.

We still believe we can improve from the running margin. We expect a good demand overall, and we are running with fairly high gross profits here.

So if the volume continues as is, we are kind of positive also about the future. Of course, we are talking about another 2 percentage points or whatever up, but running on a good level, and we expect it to remain at this level or even somewhat better for the second part of the year.

Okay. Thank you.

And then my second question is just regarding your commentary on the product deliveries. So you pointed to a bit of a sequential increase in deliveries and obviously have communicated a bigger pickup in H2.

Just wanted to clarify whether the deliveries in the quarter were in line with expectations. And then how are things developing on the demand side here?

Are you referring now to Industrial Solutions? Is that the question related?

Yeah. So, I mean, we that is a long order.

But, generally, that business that we refer to is very long-order orders. And we know that we know the order book well in advance.

So it is a very, let's say, low turn in the quarter if I may say. So that is why we feel confident that this deliveries will be developed as expected and is well in line with what we guided for and believed in.

So we do not see any never know. Well, there could be some let's say, delays in certain areas, but we do not know that at all.

So it is not really a problem about availability or lack of orders. it is more a matter that the customers did not ask for the products here in the first part of the year, and we see an increased project activity here in the second part of the year.

So nothing really surprising or nothing kind of no challenges, as we see it today.

I am sorry, just on the demand side, like the book to bill and The demand side is--I mean, if you look at the project business, the demand is still, let's say, flat positive.

So we do--I mean, we are--I mean, on this project part, Industrial Solutions, the main exposure is not the only 1, but if you should pick someone, it is LNG development and all of that, and then that is kind of still so overall, let's say, the activity level is high. And then, of course, it is always a bit bumpy on this kind of big project business.

It goes a little bit up and down, and there is always a phasing in the projects all of that. But we are a solid order book.

We have if I may say for that business, an all time high order book. And so that is more a matter of executing and making sure.

So it looks good, and that is not only for the next quarter. That looks good for kind of the next year plus in that part.

But it will be a little bit fluctuations in between quarters since it is kind of sizable project deliveries.

Thank you. And my final question is just on pricing.

I just wanted to get a bit more color with regards to development in Q2 and then just what you are seeing at the moment as well.

I would pricing. Of course, a lot of let's say, suppliers indicating, let's say, cost ups and there is also some freight costs going up.

But I mean, we are confident in managing that in a good way. We are using kind of resourcing where that is beneficial for us.

And we do, of course, also do some pricing. But we believe the acceptance for price increases, well motivated price increases is good in a way.

So we do not see a challenge in adapting for this potentially higher raw material pricing. We should say that most of this raw material pricing fees have not really kicked in yet, but also neither has our price increases.

So we feel going forward, we do not feel any kind of we do not see that as a risk for us going forward on this cost inflation in relation to price increases. But there, we need to stay close to it and see what happens.

And we adjust when we need it when we need, and we feel confident that we will be able to adjust if needed.

Thank you very much.

Great. Thank you.

If I can start on the outlook statement for Q3, you are talking about demand sort of an underlying basis being sequentially better. Are there particular regions or end markets where you are seeing that?

Or is that sort of across the board? And then you are also talking about sort of putting that to 1 side, the comp impact on Q3 growth.

Is there any way to think about the magnitude of that and therefore the potential step down from the 8% this quarter?

The demand is surprisingly good more or less all over. Of course, some automotive pockets, which is weak, if I say that.

But overall, the global automotive is good. And also, there is a buses is good.

We see the aftermarket automotive picking up. So there is, of course, but we do not really have this exposure.

it is a direct exposure to the weak areas of that. But so overall, we see aerospace is good, semiconductors continue to delivering very well.

We have the oil and gas, LNG delivering good. We see also some uptick in this, what we call industrial automating, robotic and stuff also where we see higher demand.

I mean, the area construction industry, I will be commenting all that on a lower level. We see slight kind of lights in the tunnel here for both commercial and residential construction.

And the big segment for us, which is hydraulic pneumatic which is then driven by off highway and agriculture also where we after some kind of a bit challenging quarters, we see also an uptick in this. So I have to say, Alexander, that we are looking fairly bright at the moment wherever you look.

Now medical solutions is the 1, but this is a little bumpy on, I think, deliveries, I should say, the start of programs and they are a little bit bumpy in the ordering. So that is what we have.

And that is also maybe stay on that, 1 of the main things here going in Q3. If you look at our Q3 figure last year, we had, I think, 13% or something organic growth in Medical Solutions.

And we did comment already then that was kind of abnormally high. And that is where we had to bring with us here now going into this quarter, where we have a comp with a fairly, let's say, high So we talk about a couple of percentage points down from this 8.

So we still let's say, expect it to stay on a very solid number above our kind of long-term guidance of 4. But then when it ends up, but if I can be very direct, if it ends up 5, 6, or 7, I do not know.

But we do not believe it is gonna reach 8 but we neither believe we do not see it is gonna go below 4. So that is kind of the ballpark figure to give some more clear guidance on that.

As I understand, there were some confusion or some questions around it. that is really helpful.

And if I can just follow-up 1 more on margin You are talking the release about pricing and sort of cost efficiencies having covered extra cost due to the geopolitical situation. And I am aware that you are particularly proactive as a business on both those pricing and efficiency points.

Was there any benefit in the quarter that you were able to sort of mobilize the company to price and to be more efficient on cost ahead of some of those raw mat inflations hitting the business? Or is it more sort of a neutral effect on margins this quarter?

Thank you.

I would say, it was neutral to positive, but a very slim positive, if that I mean, also when you have all of these kind of turbulent situations, I mean, change management gets a little bit easier. You can speed up a few actions.

You can do the a little bit quicker, both in terms of pricing and kind of own cost actions. But I mean, overall, this is not kind of an explanation on the margin.

it is not an explanation of growth. And we do not I have got some questions also on pre buying.

We do not see any sizable pre buying. We do not see really customers protecting themselves on prebuying.

So we cannot of course, we are watching it carefully, but we cannot really see that driving sales growth or driving the in any meaningful way. Then, of course, there could be individual cases, but, I mean, if you look at the overall development, we cannot see that being kind of any kind of meaningful impact in any way.

Great. Thank you.

Hi. Good afternoon.

Peter, Fredrik, and Christofer. 2 questions for me.

Most of my questions have been answered already, but maybe just the Medical, so low organic growth there. Could you just maybe talk through what is driving that?

I think that it appears you talked about that being driven by life sciences, but sort of any idea what the run rate is maybe from when you speak to customers, especially in light of the fact that you have expanded capacity and that should be supporting organic growth.

it is not. I know you are looking at the figures and detail that we do as well, but, I mean, it is really a small deviations here, and that is a kind of a weekly delivery here and there.

Where people, let's say, yeah, fill up their inventory or lowering their inventory. We do not see that as kind of linked to an active level.

And I think it is been a little bit it is a little bit bumpy in medical, I must say. And we need to look at the rolling 12 in more to get the guidance.

It will be, let's say, bouncing a little bit in between the quarters. We still remain in a solid positive territory, and we do not see that changing going forward.

Now, of course, it gets tough comps in Q3 here as we had plus was it 13 last year? So now and that was kind of linked.

So maybe we will get into a negative here in Q3, but, I mean, that is not gonna kind of influence the rolling 12 figure that much. So I cannot really I am sorry that I cannot really give you any more guidance on it.

We need to accept that this is the way it is, and we need to look more on the rolling 12 figure. Great.

Thanks. So we are not--I mean, we are not concerned.

Sorry. We are not concerned.

We see the development. We are keeping the customers.

We are keeping the programs. We are growing in the programs, but the customers are ordering a little bit in a yeah.

They go a little bit up and down sometimes in orders, which we honestly do not fully understand why. Great.

Thanks. And maybe just on Sealing Solutions.

12% organic growth is pretty strong, and I know the guide kind of reflects this in the go forward that you would therefore have tough comparables. But could you just give a sense of if that sort of if there is any actual pull forward demand and particularly, like, what if effectively whether plus 12 came versus your initial expectations going into the quarter?

I mean, let's say, the order book supported this going into the quarter. It was slightly but was kind of slight acceleration in the quarter.

But not really meaningful. We had a very good order Intake in Q1.

We have a good order intake in Q2. So we feel confident also going into Q3.

Just a few segments pushing. We have aerospace continue developing very nice.

Semiconductors is a lot up as well for us, although a small part of totality, but it is growing rapidly within Sealing Solutions going developing nice way. If there is anything which is more let's say, meaningful positive in the quarter is probably the development within this, what we call, hydraulics pneumatics, which is off highway agriculture where we see an improvement in the quarter.

Otherwise, it is kind of the same. A little slight in automation robotics, but these are these 2 areas, both kind of hydraulics off highway and automation has leaned a little bit negative development the last quarter.

We have been waiting for the uptick in there, and now it is kind of yeah. We are seeing it, but it is not kind of dramatic changes.

So we see Sealing Solutions is very wide in exposure. So there is a kind of a very wide growth in a lot of segments and also all due in also a lot of geographies.

So it is in a kind of a broad-based growth that we see in ceiling. Great.

And maybe just 1 last 1, just on margins. Really strong in Sealing Solutions, just sort of flattish in Industrials and Medical versus strong organic growth.

Could you just help us understand sort of why the drop through was maybe less than expected in those 2 segments despite decent organic growth? I commented that the Industrial Solutions is likely, let's say, internal You do not see it, but we guide you on that 1.

it is a slight negative mix that we have a little bit unbalanced growth in a few areas. We do expect it to be better in the second part of the year.

But nevertheless, in the quarter, that is why you do not really get the drop through that we should be getting. But that is that is the way it is sometimes.

In medical, once again, it is a fairly small business. So it is individual orders, individual customers that is driving it.

And we are kind of happy as long as it stays above 20, and that is what we are aiming for, and that is what we do. And we were about 20 this quarter.

And then whether it is 20.2 or 20.4 or 20.5, is kind of very similar as we see So that I do not know if that is enough or you are that is very helpful.

Thanks very much for taking my questions. I will jump back in line.

Thank you.

Hi. Good afternoon.

Just 1 follow-up on what you said there on the semiconductor exposure. Could you give us any sense of the current revenue run rate or share of group sales and give some color on how that is growing and perhaps margins as well would be very appreciated.

it is a low single digit, let's say, compared to the overall group sales. But I mean, the growth rate is tens of percent.

Organic growth. And of course, we are also looking there to be as fully transparent on that, we are looking also for acquisitions, and we are doing investments.

We are building a new we are expanding, for instance, our factory in China. In order to support organic growth there.

We have got inaugurated a new facility for semiconductors also in Malta for Europe. And we are looking also for a setup in U.

S. So we are investing into that, and we are looking for continued kind of tens of percent of organic growth for, let's say, kind of foreseeable future.

So is this going to be a growing part of Treleborg. Of course, we are focusing on organic growth.

But also hopefully be able to support it also with some supplementary acquisitions. So it is a it is a priority segment for us.

it is not as big as we wanted in Trelleborg today, but it will be a substantially bigger part of Trelleborg if you look for the next kind of 3-5 years. So that is kind of the horizon where you are gonna see this growing part of Trelleborg.

Great. 1 more final 1 for me on aerospace.

The capacity investments you have been doing in Morocco, when do you see those ramping up? And how much capacity are you adding in total?

I mean, on that 1, are not only adding in Morocco. Morocco is kind of a little specific to Airbus and Safran investment there to support them locally.

So that is kind of more part of a global supply chain from them and being able to deliver products to them with the same kind of quality systems and same quality control. We are investing in a lot of sites to grow with aerospace activity.

I do not really want to give a guidance there, but I mean, we also talking here, let's say, 2 digit organic growth, for the foreseeable future.

Great. Thank you.

Thank you very much everyone. Good afternoon.

I have 2 questions. That relate if not asked them together.

Just around the Sealing Solutions business. Firstly, on the margins, good incremental margins off the back of the very strong growth taking to 22.5%, not far off the 23% level you have targeted in the past.

Now that is 1 quarter and recognizing the TSS margins typically lower in the second half of the year. So I am interested in the timeline you now see for getting to that 23% level?

Would you see that as feasible in 2027, for example? And then related question, following up on your comments about the hydraulic segment that Fluid Power business.

I think my understanding is that you have generally outperformed the broader customer base Maybe interesting to get an update on where you see yourselves now versus before that market went into a slowdown? How far away are we from say, any peaks?

Or are we now above prior peaks? That would be very helpful.

Thank you.

Starting with the Hydralics. I do not I think we are quite some way away from the peak, actually.

We are not yet I mean, agriculture construction equipment improving, but agriculture, which is another big subsegment, I would say, construction equipment and mining is kind of on a good level. Mining on a top level, if I may say, but construction equipment is growing and agriculture is still down.

So I do not see that happening. And also, when you look at this previous peak levels, there is also quite a lot of kind of aftermarket in that part as well.

And we feel that inventory levels there is still relatively low. So there is kind of a double up which we do expect to continue for some time.

So we are so difficult to give a guidance, but we I do not feel that we are let's say, not even close. I do not think we are close to the kind of peak on that 1.

that is gonna take some time before we get that fully into the books. And then talk about the margin in Sealing Solutions, I mean, have a good development.

We do expect it continue to improve. As you say, we are not kind of at the peak level here of 22.5%, but then whether to give guidance individual quarters and stuff is difficult.

But we do expect is improvement possibilities. And, of course, if you have 23 over a cycle, then there should be a few quarters which should be above 23%.

In order to get into that. As I say, there is some seasonality.

There is some differences between quarters and between the businesses. So we are we are not seeing kind of the ceiling being 23%.

We need to if we get to let's say a stable long term margin of 23%, we will have to have a few quarters which is above 23%. So I do not know if you wanna add something to that.

But that is, I think, what I wanna see what I wanna say about that 1.

No. that is very helpful.

Thank you very much.

Thank you. And hi, Peter, Frederick, and Christofer.

Maybe starting with your gross margin, it was record high now in the quarter, 38.5%. And we have seen that you have made very good progress on your kind of fixed cost base, and you always address your production footprint.

But looking at your OpEx cost, it has been quite sticky at 20% of sales, and my question really is if you are looking into it and especially maybe on the admin side, which is actually higher as a percentage of sales compared to other industrials?

Yeah. I mean, if you are looking at the quarter, it was a little bit higher year.

It was higher year over year, but if you look sequentially from Q1 to Q2, it was more on the same level But, of course, that is also dependent on other activities that we are doing, for example, m and a projects and so forth. So that a little bit ups and ups and down, Agnieszka.

From that point view, if you are looking at the central costs. Yep.

No. Not really central cost.

More like your OpEx. So more of the kind of administration cost that you present in your p and l.

I mean, we have a different setup. Also, you can say, well, with the ceiling solution that we are we are running with a higher gross profit because we have that kind of more solution selling, which is adding more sales and admin cost.

So that is part of our business model and all creating more margin on the bottom line. But so it is difficult to have an review when you benchmark But, of course, we can always see improve, and that is what we are always doing.

You see restructuring cost when we try to get out synergies when we are acquiring companies So but it is, of course, it is different to compare other industrial running with a different business model.

Yeah. that is true.

I yeah. And then Yep.

Please go ahead, Agnieszka. No.

Maybe if you can add a comment, it would be appreciated.

No. No.

it is it is more a matter of push on that. And I mean, this is part of the way that we are able to get a better gross profit is, of course, we are adding more especially sales costs.

We know that we are having quite a lot of application engineering. We are generally bypassing distributor sales, and that means that we need to carry a higher a higher fixed cost.

But that getting that back on a higher gross profit. So that is called as always the balance.

If we cannot get the higher gross profit, then we have to lower the administration of all the OpEx. But if we can get it up to higher we think the overall net is better in this way.

But, of course, we are looking at it all the time, and we are looking at ways to improve it and looking to become more efficient without kind of without yeah. Bringing down the support to our customers that are in a way.

Yep. Fair point.

Thank you. And then my last question is on capital allocation.

If I look at your M&A activity last year, By this time point, you completed 4 acquisitions. I think this year, we are running at 2 now.

So can you just maybe talk a bit about your pipeline? What is see, and what do you expect do you expect any deals to happen until the year end?

Pipeline and M&A is improving. There is a lot of activity at the moment.

So we are was debated here before it will be any summer holiday or not for us. Because there is a lot of activity level.

And then, of course, you never know when these acquisitions on whether you are actually able to make the deal at the end. I mean, valuations are in some areas, quite challenging, and we are not kind of willing to overpay.

Private equity is back in the market very eager to make deals. We, of course, here long term or forever, and we will a little bit more cautious in certain areas than we feel that they are.

So we are losing some deals, yeah, just to be transparent. But once again, the activity level is high, and we are confident that you are gonna see us doing, yeah, a number of m and a's before year end.

As soon as our pipeline is bigger than ever, but I need is on a kind of a number of projects ongoing at the moment is on a very high level in yeah. Historic comparisons.

And then once again, with that said, you never know if a deal is done until it is actually done. Thank you for the color.

Thank you very much. 2 questions from me.

I am sorry for coming back to your outlook, but normally, you guide with adjustments for system evaluations Now you are bringing in as a reason for somewhat weaker demand. But also bringing in You should probably have some more price contribution in Q3.

For compensating for raw material and also that you see better project business Could you maybe please add some more flavor on this outlook just for me to understand what part is weaker? Is there some earlier asked about maybe some more business on pre buy in the quarter related to Sealing.

Or how should I think about this Sorry for that.

The guidance is actually if you look sequentially, the business activity is up. But, I mean, if I remember the figures correct, we had a -1% in Q2 organic growth, and then we had a plus 3%, plus 4% even in Q3 next year.

So this is a 5 percentage point difference. And then if you are adding that to this 8 then, of course, it gets a very tough comp so if you take that 8 and then 5 in difference is 3%, so we actually see it is gonna be better than 3%.

So we actually see an increased activity quarter to quarter. That is the way we calculate So if you did not follow my Fair enough.

that is Yeah. So that is the way we look at this.

So just to clarify, we actually see an improvement quarterly quarter on quarter. We see an improvement activity.

But tougher comps means that we will most likely not be able to deliver 8% in Q3, but it will be, as we see it today, Yeah, very solid organic growth also in Q3. And then, of course, there is some positive, there is some negatives.

You are mentioning some positive, maybe a little bit more pricing, maybe a little bit higher project activity. But then we know medical is not gonna be gonna be negative because it is very, very tough comps in there.

We have a high activity level in certain parts of Sealing Solutions, which is gonna be challenging to actually bring more capacity onstream. So there is some negative, some positive, but it boils down Once again, there is couple of percentage points down on organic growth compared to this quarter.

But once again, it is a very solid we expect a solid quarter also in Q3. Fair enough.

Maybe the last 1, Kristian, on the autos. Very positive take on the quarter for you guys.

At the same time, when I look at the different parts, the OE business generally has been much tougher in Q2 than compared to Q1. So from your perspective, is it I mean, trucking is up, I know.

But is it aftermarket that has stepped up further? Or what it was describing your auto business being broad based good in the quarter given how OE business has been?

it is let's say, aftermarket is up, trucking buses is up, And then, of course, we are global exposures. We still feel that the China Asian market is developing nicely, North America also quite okay.

exposure More sour in Europe, but overall, I mean, most of our automotive is linked to kind of global technology more than global platform. So we are very wide exposure.

And if it is growing in China and growing in North America, then, I mean, we grow with that. And then, of course, we absorb some lowering activity in Europe.

Sometimes. But overall, we feel that it is a global exposure which is fully global exposure, which is benefiting us in terms of, let's say, passenger car automotive So that is the way we look.

Are you gaining market share in China? Because, I mean, the likely of production in China is down 8% in the quarter.

Yeah. I think I think we do that somewhat that we are in certain areas growing it at a activity.

So that is it is it is the way it is, Hampus. So now that is the way we can explain it.

that is also so we can only explain aftermarket is up, but we see also our kind of sales due to brake systems and these constant velocity joints and all of that is actually it is improving in the quarter. There is some kind of probably market share gains.

But overall, we feel the market is fairly high activity. In most of the areas within automotive.

That is the way we look at it. Fair enough.

Yeah. Super.

Thank you very much.

Thank you.

Hi, thanks for taking my questions. Actually, first question, little bit follow-up on the question before on the automotive recovery.

And also related the recovery on construction TIS that you also mentioned in the slides. So this segment has been weak for a while, and then we are seeing some improvement.

So how do you see the sustainability of the recovery based on what you discussed with your customers? How do you think these segments will continue to be kind of improving?

In next couple of quarters.

Yeah. If you say the construction segment, I mean, I do not know if you are following.

There is Sweden. There is this company, Envido, which is kind of the biggest window and door maker, which recorded a record high order intake actually was yesterday or something, which is well in line.

We see an up in that 1. We see an uptick on the in the kind of house construction, especially residential construction, and that is because that is the main exposure we have within TIS is actually ceiling profiles for windows and doors.

And that is where we see an uptick from low levels but nevertheless an uptick on that 1. Overall, like a construction infrastructure construction, if you may say that, has been on a high level for some time.

We have rail expansions. We have tunnels.

We have harbors. So that part of the industry has not really been down.

So that is kind of developing nicely. I think that is automotive team, what they wanted more on that 1?

Or what that what do you what do you want to ask about automotive? Development if I got it right from you?

Yeah. I mean, I was just wondering how sustainable for this kind of recovery will be based on what you discussed with your customers.

Because these segments have been weak for a while. Right?

Yeah. But I think automotive could potentially be, if I may say, that there was an uptick because we were boosted in the quarter by some aftermarket pickup, truck and buses, and that segment is kind of looking solid also going forward.

But it could be that it was, let's say, overly positive linked to this aftermarket bounce back. But it is not a major part of Trelleborg anymore, and that is just a very small part of our exposure.

But it could be that this kind of good development. I do not know.

Christofer wanted to add something as well.

Yeah. Well, Timothy, you know that.

Last year in Q2, we felt quite significantly in the aftermarket on our brake shims due to the tariffs, basically. And then the market has slowly come back in Q3, Q4, Q1 and now also in Q2.

So we are basically back where we started in the aftermarket. So it is more a situation where we took a big hit last summer and now are back to normal.

Understood. Understood.

Yeah. That makes sense.

And then a little bit follow-up on the organic growth expectation as well. So first of all, we regarding the TIS, the delayed projects, which is going deliver into second half.

Do you have a sense of whether it will be more in the third quarter or in the fourth quarter, given that you are expecting the growth in the third quarter to be slightly lower quarter on quarter because for of base, obviously. But does that imply that it is likely that the delayed project delivery would be more towards this fourth quarter.

We do not we do not wanna split there. We say I mean, sorry, Dettin.

We need to Alec to say that we see an improvement on 1, but it is not really neither it is an important part, but it is not kind of explanatory part of TIS. It will improve, and it will be creating some positives, but not really any major difference to the overall figures.

So that is yeah. I think the way I want to yeah, to comment on that 1.

Yep. Understood.

Alright. Thank you very much.

Thank you.

Thank you. Thanks to all of you for listening in, and thanks again for your continued interest in Trelleborg.

Happy to support you. with further comments.

Christofer, our main contact point, and he is there to take your calls and take your questions. And, of course, Fredrik and myself happy and eager to support as well.

If need and if we can kind of be helpful. To contact us.

So do take and speak to you soon, all of you. Thank you.