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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 Q3 2025: A Strong Quarter with Organic Growth and Margin Expansion

Trelleborg reported a solid Q3 2025 with revenues of SEK 8.532 billion, relatively flat compared to last year, but with 4% organic growth. The EBITDA margin reached an all-time high of 18.1%, driven by strong performances across business areas. Earnings per share, excluding items affecting comparability, rose 11% to SEK 4.20, slightly below estimates of SEK 4.45. The company's cash flow conversion was 92%, with a cash flow of SEK 1.741 billion, driven by higher EBITDA and efficient working capital management.

Publication Date: Oct -27

📋 Highlights
  • Record EBITDA Margin:: Achieved 18.1% (up from 17.3%), driven by operational improvements and MRP acquisition synergies.
  • Organic Growth Despite Headwinds:: 4% organic sales growth (3% from M&A), offset by 6% currency headwind, totaling SEK 8.532 billion in sales.
  • Medical Solutions Surge:: 13% organic sales increase, fueled by project-driven demand and strong hydraulics/machinery growth in Sealing Solutions.
  • Strong Cash Flow and Efficiency:: Cash flow reached SEK 1.741 billion (92% conversion), with 50% linked to higher EBITDA and 50% from working capital management.
  • Sustainability Progress:: 92% renewable electricity usage, and Scope 1/2 CO2 emissions reduced, aligning with long-term decarbonization goals.

Business Area Performance

The company's business areas performed well, with Industrial Solutions seeing 2% organic growth and a stable margin. Trelleborg Medical Solutions reported strong organic sales growth of 13%, driven by a one-off project sales, which is not expected to impact future sales. Sealing Solutions saw very solid organic growth, driven by improved demand in the core industrial business, particularly in hydraulics, machinery, and pneumatics.

Regional Performance and Outlook

The company saw organic growth in all three major geographical areas, with Asia being particularly strong, driven by the automotive segment. Europe and the Americas also showed improvement. Trelleborg expects demand to remain at the current level, with organic growth potentially around 1 percentage point lower than the 4% seen in the quarter. The order intake was positive, with a book-to-bill ratio above 1.

Margin Development and Guidance

The company is targeting a 23% margin in TSS, and while the Q3 margin was strong, it's challenging to guide for Q4 due to seasonal weakness. The restructuring cost is expected to be around SEK 500 million for the full year, with some projects being booked as restructuring costs in Q4. Trelleborg still aims to achieve a 20% run rate EBITDA margin by the end of the fiscal year.

Valuation and Estimates

With a P/E Ratio of 24.96 and an EV/EBITDA of 12.82, the market is pricing in a certain level of growth and profitability. Analysts estimate next year's revenue growth at 3.6%. Given Trelleborg's strong Q3 performance and guidance, the stock may be attractive, with a Dividend Yield of 1.89% and a Free Cash Flow Yield of 3.56%. The company's return on capital employed reached 12%, indicating a decent return on investment.

3. NewsRoom

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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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What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

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Société Foncière Lyonnaise (ENXTPA:FLY): Assessing Valuation After a Year of Solid Share Price Gains

Sep -09

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Minor Hotels Europe & Americas (BME:NHH): Exploring Valuation After Steady Share Performance

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: 7.8

Growth: 6.2

Quality: 7.1

Yield: 4.4

Momentum: 6.5

Volatility: 3.7

1-Year Total Return ->

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Bucher

A-Score: 5.2/10

Value: 4.2

Growth: 3.4

Quality: 6.2

Yield: 5.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Mycronic

A-Score: 5.2/10

Value: 1.6

Growth: 8.1

Quality: 8.5

Yield: 3.1

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

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Fluidra

A-Score: 4.8/10

Value: 3.1

Growth: 6.2

Quality: 5.3

Yield: 4.4

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Aalberts

A-Score: 4.2/10

Value: 4.7

Growth: 3.9

Quality: 4.0

Yield: 5.6

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Trelleborg

A-Score: 4.2/10

Value: 2.6

Growth: 5.8

Quality: 6.2

Yield: 3.8

Momentum: 4.0

Volatility: 2.7

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

401.1$

Current Price

401.1$

Potential

-0.00%

Expected Cash-Flows