Slides
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Alleima Interim report Fourth quarter and full year 2025 1 January 27, 2026 Göran Björkman, President & CEO Johan Eriksson, CFO
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Alleima Safety first At Alleima our objective is zero harm to our people, the environment we work in, our customers and our suppliers. Protective equipment First aid kit Assembly point Emergency number Psychological safety Emergency exit Alarm Health & well-being Speak Up 2
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Alleima Full year 2025 highlights 3 Solid financial foundation, in an unstable market ― Mixed demand ― Resilient revenues ― Earnings dampened by FX Our strategy stands firm ― Targeted measures for efficiency and competitiveness ― Maintaining price leadership ― Ongoing capacity expansions Proposed dividend of SEK 2.50 per share (2.30) ― Corresponds to 71% of profit for the period (adjusted for metal price effects) Revenues (SEK M) 18,630 Adj. EBIT (SEK M) 1,555 Free op. cash flow (SEK M) 1 ,100 Organic revenue growth 0% Adj. EBIT margin 8.3% Adj. EPS (Diluted, SEK) 4 .62
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Alleima 0 1 2 3 2022 2023 2024 2025 0 - 0,02 - 0,04 - 0,05 -0,05 -0,03 -0,01 0,01 0,03 0,05 9,1 10,4 9,9 8,3 0 2 4 6 8 10 12 2022 2023 2024 2025 13 8 1 0 0 2 4 6 8 10 12 14 2022 2023 2024 2025 Performance vs. financial targets 4 Organic growth Deliver profitable organic revenue growth in line with or above growth in targeted end - markets over a business cycle Earnings Adjusted EBIT margin (excluding items affecting comparability and metal price effects) to average above 9% over a business cycle Capital Structure A net debt to equity ratio below 0.3x Dividend Dividend on average 50% of net profit (adjusted for metal price effects) over a business cycle. Dividend to reflect financial position, cash flow and outlook Average 5 % % Average 9.5 % Average payout ratio 43 % % Maximum target DPSx 0,30 1.40 2.00 2.30 *Proposed dividend 2022 2023 2024 2025 2.50*
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Alleima Q4 highlights Weaker top line ― Continued market uncertainty ― Weakness in the short - cycled business ― Positive development in Industrial Heating Impact on earnings ― Revenue development from weaker markets ― Delayed ramp - up ― Significant FX headwind Strong financial position ― Ongoing measures for long - term competitiveness ― Solid cash flow ― Strengthening our position in APAC Revenues (SEK M) 4,494 Adj. EBIT (SEK M) 364 Free op. cash flow (SEK M) 422 Organic revenue growth - 5% Adj. EBIT margin 8.1% Net debt (SEK M) - 864 5
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Alleima Targeted measures for increased efficiency and long - term competitiveness 6 ⎯ Optimizing footprint ⎯ Efficiency improvement activities ⎯ Volume adjustments Annual savings of approx. SEK 200 million Volume dependent savings Permanent savings One - off cost of SEK 400 million of which 50% affecting cash - flow Q1 Q2 Q3 Q4 Savings run - rate 60 % 100 % 2027 ~75 % ~25 % Of which SEK 342 million were recognized in Q4 2025
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Alleima Leading sustainability Making an impact through our operations Health and safety ― R12 t otal recordable i njury f requency r ate, TRIFR, was 5.1 (7.1). The quarterly outcome was 4.7 (5.8). Recycled steel ― R12 share of recycled steel in the steel manufacturing amounted to 80.8% (80.8). The quarterly figure amounted to 80.8% (80.7). CO ₂ emissions ― R12 CO ₂ emissions amounted to 89 kton (93), a reduction of 4%. Emissions for the quarter amounted to 26 kton (25), an increase of 1%. Sustainable product portfolio ― The sustainable product portfolio’s R12 share of revenues amounted to 24.8% (24.1). 7 ― All time high safety performance ― Share of recycled steel remains high ― Reducing CO ₂ emissions ― Increasing the share of the sustainable product portfolio No. of injuries Thousand tons Frequency rate, R12 % Thousand tons, R12 % 0 2 4 6 8 0 5 10 15 20 25 30 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 TRI TRIFR, R12 76 78 80 82 84 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Recycle rate, R12 % 84 86 88 90 92 94 96 98 0 5 10 15 20 25 30 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Scope 2 Scope 1 - fuels Scope 1 - raw materials based Total CO ₂ emissions, R12 21 22 23 24 25 26 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Share of revenues, R12 %
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Alleima Market development ― High degree of uncertainty ― Weak sentiment in Europe and North America, Asia more resilient ― Momentum in key segments 8 Perceived year on year underlying market demand trend
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Alleima Order intake and revenues 9 Order intake R12 ― Organic order intake growth of - 4% for rolling 12 months ― Organic revenue growth of - 5% ― R12 book - to - bill 95% SEK M % Order intake R12 (SEK M) 17,741 Revenues (SEK M) 4,494 SEK M Revenues and book - to - bill 0 20 40 60 80 100 120 0 1 000 2 000 3 000 4 000 5 000 6 000 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Revenues Book-to-bill R12, % 0 5 000 10 000 15 000 20 000 25 000 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025
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Alleima Earnings 10 Adjusted EBIT at SEK 364 million ― Margin of 8.1% ― Significant FX headwind ― Absorption effects due to weak market and delayed ramp - up Free operating cash flow of SEK 422 million ― Changes in working capital and lower capex Adjusted EBIT SEK M % 0 2 4 6 8 10 12 0 100 200 300 400 500 600 700 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 EBIT, adj. EBIT margin, adj. R12
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Alleima Tube 11 High market uncertainty ― R12 organic order intake growth of - 7% ― Organic revenue growth of - 11% ― R12 Book - to - bill of 93% Weak short cycled markets ― Adj. EBIT margin of 8.4% (11.1% excl. FX) ― Absorption effects due to weak market and delayed ramp - up ― FX headwind of SEK - 97 million yoy SEK M SEK M Revenues and Book - to - bill Adjusted EBIT, (%) % % SEK M Q4 2025 Q4 2024 FY 2025 FY 2024 Order intake, R12 12,138 13,677 12,138 13,677 Organic growth, R12 ,% - 7 - 10 - 7 - 10 Revenues 3,089 3,713 13,063 14,027 Organic growth, % - 11 7 - 2 2 Adj. EBIT 261 457 1,159 1,422 Margin, % 8.4 12.3 8.9 10.1 0 20 40 60 80 100 120 140 0 1 000 2 000 3 000 4 000 5 000 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Revenues Book-to-bill R12, % 0 2 4 6 8 10 12 0 100 200 300 400 500 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 EBIT, adj. EBIT margin, adj. R12
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Alleima Kanthal 12 Positive topline development ― R12 organic order intake growth of 9% ― Organic revenue growth of 10% ― R12 Book - to - bill of 105% Earnings heavily affected by FX ― Adjusted EBIT margin at 16.3% (19.7% excl. FX) ― Still low volumes in Industrial Heating ― FX headwind of SEK 57 million yoy Revenues and Book - to - bill Adjusted EBIT, (%) SEK M SEK M % % SEK M Q4 2025 Q4 2024 FY 2025 FY 2024 Order intake, R12 4,177 4,077 4,177 4,077 Organic growth, R12 ,% 9 0 9 0 Revenues 981 999 3,996 4,200 Organic growth, % 10 - 6 1 - 3 Adj. EBIT 160 181 656 750 Margin, % 16.3 18.1 16.4 17.9 0 20 40 60 80 100 120 0 200 400 600 800 1 000 1 200 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Revenues Book-to-bill R12, % 0 2 4 6 8 10 12 14 16 18 20 0 50 100 150 200 250 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 EBIT, adj. EBIT margin, adj. R12
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Alleima Strip 13 Solid underlying development ― R12 organic order intake growth of - 11% ― Organic revenue growth of 20% ― R12 Book - to - bill of 91% Improved earnings ― Adjusted EBIT margin of 9.5% (11.5% excl. FX) ― Solid contribution from compressor valve steel ― FX headwind of SEK - 12 million yoy Revenues and Book - to - bill Adjusted EBIT, (%) SEK M SEK M % % SEK M Q4 2025 Q4 2024 FY 2025 FY 2024 Order intake, R12 1,426 1,665 1,426 1,665 Organic growth, R12 ,% - 11 32 - 11 32 Revenues 424 382 1,571 1,465 Organic growth, % 20 - 3 13 - 4 Adj. EBIT 40 23 61 66 Margin, % 9.5 6.1 3.9 4.5 0 20 40 60 80 100 120 140 0 100 200 300 400 500 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Revenues Book-to-bill R12, % -4 -2 0 2 4 6 8 -20 -10 0 10 20 30 40 50 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 EBIT, adj. EBIT margin, adj. R12
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Alleima Adding remelting capabilities. Sandviken, Sweden. Ongoing growth initiatives to strengthen the company long-term Industrial Heating Chemical and Petrochemical Medical Transportation (Aerospace) Nuclear Increase capacity for process gas heaters and modules. Walldorf, Germany. 2023 2024 2025 2026 2027 Increase capacity for heating solutions. Sakura, Japan. Increase silicon carbide capacity. Perth, UK and Concord, US Increase rolling and finishing capabilities. Zhenjiang, China. Broaden the US product portfolio Increase medical wire capacity Increase SGT capacity Establish production footprint. Penang, Malaysia.
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Alleima Financial summary 15 SEK M Q4 2025 Q4 2024 FY 2025 FY 2024 Order intake, R12 17,741 19,419 17,741 19,419 Revenues 4,494 5,094 18,630 19,691 Adj. EBIT 364 584 1,555 1,944 Adj. EBIT margin, % 8.1 11.5 8.3 9.9 Metal price effects - 8 - 191 - 275 - 446 Items affecting comparability - 342 0 - 342 0 EBIT 15 393 938 1,498 EBIT margin, % 0.3 7.7 5.0 7.6 Net financial items - 1 - 22 35 73 Normalized tax rate, % 24.9 20.4 23.9 23.9 NWC, % ¹ 35.5 33.6 35.8 35.1 Free operating cash flow 422 202 1,100 1,266 ROCE excl. cash, % ² 5.8 9.5 5.8 9.5 Adj. EPS, diluted 1.06 1.79 4.62 6.27 SEK M Order intake, R12 Revenues Q4 2024 19,419 5,094 Organic, % - 4 - 5 Structure, % 0 0 Currency, % - 4 - 6 Alloys, % - 2 - 2 Total growth, % - 9 - 12 Q4 2025 17,741 4,494 Change compared to the same quarter last year Quarterly revenues includes approximately + 9 0 BPS from US tariffs 1) Quarter is quarterly annualized and the annual number is based on a four quarter average. 2) Based on rolling 12 months and a four - quarter average.
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Alleima 1 2 3 4 51 2 3 4 5 Bridge analysis, adjusted EBIT Leverage: - 24% 16 ― Negative organic development ― Currency headwind on Adj. EBIT ― Small contribution from Endox Adj. EBIT margin 11.5% Adj. EBIT margin 8.1% Adj EBIT Q4 2024 Organic Currency Structure Adj EBIT Q4 2025 Adj. EBIT margin 9 .9% Adj. EBIT margin 8 .3% Adj EBIT FY 2024 Organic Currency Structure Adj EBIT FY 2025 1,944 1,555 - 52 FY 2025 SEK million Q4 2025 SEK million Leverage: - 84% 190 584 - 341 3 - 163 1 - 58 364
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Alleima Capital efficiency 17 ― NWC amounted to SEK 6,222 million (6,821) ― Sequential NWC decrease due to seasonality ― NWC in relation to revenues at 35.5% (33.6) ― Capital employed excl. cash decreased to SEK 15,653 million (15,983) ― ROCE excl. cash of 5.8% ( 9.5 ) in the quarter Net working capital Capital employed excl. cash SEK M SEK M % % Note: Based on rolling 12 months and a four - quarter average. 0 5 10 15 20 25 30 35 40 45 50 5 600 5 800 6 000 6 200 6 400 6 600 6 800 7 000 7 200 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 NWC NWC % of revenues 0 4 8 12 16 12 000 14 000 16 000 18 000 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Capital employed excl. cash ROCE excl. cash
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Alleima Cash flow ― Free operating cash flow of SEK 422 million (202) ― Changes in working capital and lower capex affecting the free operating cash flow 18 Free operating cash flow Free operating cash flow quarterly SEK M SEK M Q4 2025 Q4 2024 FY 2025 FY 2024 EBITDA 337 631 1,950 2,410 Non - cash items 246 52 301 148 Changes in working capital 228 144 86 33 Capex - 344 - 588 - 1,089 - 1,190 Amortization, lease liabilities - 45 - 37 - 148 - 135 Free operating cash flow ¹ 422 202 1,100 1,266 1) Free operating cash flow before acquisitions and disposals of companies, net financial items and paid taxes. 0 100 200 300 400 500 600 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025
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Alleima Strong financial position 19 SEK M Net debt and Financial net debt SEK M 589 (820) SEK M 418 (460) SEK M 1,871 (1,911) SEK M - 864 ( - 631) Net Pension liabilities Leasing liabilities (IFRS 16) Other cash less liabilities Net debt - 0.05 x ( - 0.04) - 0.35 x ( - 0.22) Net debt/ Equity Net debt/ Adj. EBITDA, R12 Capital structure 1 590 1 911 1 871 242 631 864 0 500 1 000 1 500 2 000 2 500 Q4 2023 Q4 2024 Q4 2025 Financial net debt (-) / Net cash (+) Net debt (-) / Net cash (+)
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Alleima Guidance ahead of the quarter and outcome 20 Outcome Q4 2025 Guidance ahead of Q4 2025 Capex (Cash) SEK 1,089 million FY 2025 Approximately SEK 1,200 million in FY 2025 Currency transaction and translation effect SEK - 182 million in Q4 SEK - 150 million in Q4 Total currency effect SEK - 163 million in Q4 - Metal price effect SEK - 8 million in Q4 Neutral effects in Q4 Tax rate, normalized 23.9% FY 2025 23 - 25% in FY 2025
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Alleima Guidance Q1 2026 and FY 2026 21 Capex (cash) ― Estimated to approximately SEK 1,100 million for FY 2026 Currency effects (transaction and translation) ― SEK - 240 million on operating profit (EBIT) for Q1 2026, compared to the corresponding period last year Metal price effects ― SEK - 50 million effect on operating profit (EBIT) for Q1 2026 Tax rate ― The normalized tax rate is estimated to 23 - 25% for FY 2026
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Alleima Outlook for the first quarter 2026 22 ― Geopolitical uncercainty expected to linger ― Solid backlog in key segments, shorter backlog for the short - cycled business ― Some effects from the delayed ramp - up in Q1 2026 ― Product mix is expected to be similar to Q4 2025 ― Estimated currency headwind in Q1 2026 ― Cash flow normally lower in H1
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Alleima Summary 23 ― Continued uncertainty ― Flat organic revenue development FY 2025 ― Significant FX headwind ― Strong cash flow
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Alleima Q&A 24
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Thank you alleima.com Alleima 25
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Alleima Disclaimer 26 This presentation contains “forward - looking” statements that reflect the company’s current expectations. Although the company believes that the expectations reflected in such forward - looking statements are reasonable, no assurance can be given that such expectations prove to have been correct as they are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but are not limited to, changes in consumer demand, changes in economic, market and competitive conditions, supply and production constraints, currency fluctuations, developments in product liability litigation, changes in the regulatory environment and other government actions. Forward - looking statements speak only as of the date they were made, and, other than as required by applicable law, the company undertakes no obligation to update any of them in light of new information or future events .