Welcome to the Trelleborg Q2 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing has five on their telephone keypad. I will hand the conference over to CEO Peter Nilsson and CFO Fredrik Nilsson. Please go ahead. Thank you. Peter Nilsson speaking, as already stated, I'm joined here on our Q2 call for 2026 by Fredrik Nilsson, who is our group CFO, also in the room here and able to support us is also Christofer Sjögren, our head of investor relations. Presentation of our Q2 for 2026. As usual, using the presentation which you can find on our webpage. Quickly use this presentation, turning to page two, agenda slide. Normal setup for us in Trelleborg, starting with some general comments and highlights from the quarter. Also some comments on the business areas individually, our three business areas. Fredrik will jump in and guide us through the financials more in detail, finishing up with a summary from me also some comments on the outlook for the running quarter, finishing off with the Q&A session. As usual, turning to page three. 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%, 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 percentage point to sales, currency headwind still of 2%. EBITA up at SEK 1,761 million, which is notably higher than last year. Is also corresponding to a margin of 19.2%, which is both in terms of absolute EBIT and also in terms of margin, the highest we have had for a single quarter so far. Still some negative currency translation effects. The conference call will resume shortly. We have some technical issues. We will be back shortly. We have some technical issues. We will be back shortly. [Foreign language]. You can please continue the presentation. We will start from slide one again, please. Yes. Sorry for this, all of us. We were not aware that we were out of the call, and we just picked it up. We do a restart of the full call. Welcome all of you to this Q2 presentation of Trelleborg in 2026. I am Peter Nilsson speaking, CEO of Trelleborg, and joined here on the call is Fredrik Nilsson, our Group CFO. Also supporting us on the call is Christofer Sjögren, our Head of Investor Relations. As usual, when we present our quarter results, we are going to use a slide deck, which has been on our webpage for some time, or for a few hours. That is what I am going to refer to throughout the call. Using that, turning then to page number two. Agenda. No, page number two, please. Page number two, agenda. We're talking about the highlights and then commenting on the business areas, then commenting on the financials. Fredrik 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. Turning to page number three. Heading for our report this time, strong growth and record high margin. Coming sales in the quarter, ending up a little bit north of SEK 9 billion, which is 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 two percentage points. That is the sales development. If you look at the results, EBITDA ending up at SEK 1,761 million, which is corresponding to a margin of 19.2%. Both of these, both the EBITDA and the margin, is also the highest to date for a single quarter for Trelleborg. We have some negative currency translation effects on the EBITA, which is bringing that down by SEK 24 million, going down, but nevertheless negative. Earnings per share increasing more than the EBITA, benefiting from improved financial net and actually increasing in the quarter by 18%. Of course, also supported by the share buybacks, which I will comment on also a bit later. Items affecting comparability linked to restructuring and linked to integration of M&A of some SEK 67 million cash flow. Solid cash flow, good cash flow, a 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. On a rolling 12 basis, we keep the operating cash flow, cash conversion above 90%. Share buybacks continue at the same pace as been commented before, little bit south of SEK 500 million in the quarter. Also in the quarter, we announced an acquisition of a company called Gomet, an Italian-based company focusing on the aftermarket of niche automotive sealing products called boots. Which overall, our position within boots is strong globally, and this is adding capabilities and adding a product range, more focus on the aftermarket. A very good supplementary acquisition to us, which we're going to benefit from in this niche application and this what you call business unit within Trelleborg. Turning to page four. Commenting a bit more in detail on the sales development in the quarter. We have fairly solid organic growth in all main geographical markets. Europe growing by 6%, which is quite substantially higher than a year ago. Americas and Asia, both of them close to or even slightly higher than 10%. Good development in U.S. and Asia. We note with satisfaction as well. We are behind this 10% growth. We have good growth figures both in India or in all main markets in Asia, India, China, Japan and Korea. Overall, summarizing up on 8% organic, good organic sales development in the quarter, which is fairly equally spread globally as well. Page five. On the agenda slide, commenting on the business areas. Quickly turning to page six and commenting on Industrial Solutions, a solid organic growth, organic sales up by 4% and M&A adding another 1%. Behind this is still little bit lower product deliveries in the quarter, which we have announced before. We keep to that guidance that it was little bit lower in the quarter, we do expect that to pick up more here in the second part of this year. We also note with satisfaction that construction industry sales is actually showing some improvements. It has been a fairly bad market for quite some time. Although running substantially below the peak a few years ago, we note with satisfaction that we see the first signs of an improvement. Good performance within aerospace, within industrial. We have an aerospace exposure within Industrial Solutions, although the biggest aerospace exposure within Sealing Solutions, we also note with satisfaction that, I will get back to that later, it is developing very nice in Sealing Solutions and developing also nice within Industrial Solutions. This boils down to an improvement, a slight improvement, I must say, in EBITA and margin owing to higher sales volume and operating efficiency. 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 a slightly negative mix on the sales development here. We are, let's say, happy with the development in Industrial Solutions in the quarter. Here, of course, this acquisition of Gomet is kicking in when that being fully integrated, this Gomet acquisition which I already commented on. Turning to page seven, on Trelleborg Medical Solutions, stable organic growth. We are growing by 2%. Some mixed, let's say, sales development with good development in Europe and North America, while Asia was temporarily somewhat lower. Life science segment, a smaller part of Medical Solutions, a 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. We have a slight downturn, that is mainly a mix effect, no big things here. Stable performance and solid performance for Medical Solutions. Turning to page eight and commenting on Trelleborg Sealing Solutions. 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 in industrials 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. Of course also, as most of you are aware, good development in truck and buses and also a recovery in the aftermarket sales, where we have been suffering a little bit the last few quarters, that is a bounce back in this quarter. Good development overall for us within automotive, aerospace, developing very good growth on a global scheme, which is also creating good benefits for us in the quarter. Overall, very good development in Sealing Solutions, which is then, let's say, delivering a very good results, where very good development EBITA, good margin development, good performance overall, also creating a solid foundation at least for the rest of the year. Turning to page nine, 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 lower it further. Nevertheless, it is a high priority also going forward, and we are going to continue to improve. Although maybe not with this graph we have seen in this quarter. Page 10, same applies here. We have also another KPI, on the next page 10. Is also a 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 used is coming from renewable or fossil-free electricity. As we go close to 100%, then of course we cannot go above 100%, so you should not expect too big improvements here. We are going to 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 the financials. Turning over to Fredrik, who is starting on page 12. Thank you, Peter. Starting on page 12, looking at the sales development. We have reported 7% increased sales in the quarter, from SEK 8.511 billion- SEK 9.161 billion, which is the highest sales for a quarter. If you look on the right side of the slide, you will see an organic sales growth of 8% in the quarter, with growth in all three business areas. We have -2% 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. 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 or for the rolling 12 months for continuing operations. You can see here on the rolling 12s that we reached SEK 34.7 billion in the quarter. Moving on to page 15, zooming in on the EBITA and the EBITA margin. If we start with the EBITA, excluding items affecting comparability, we have a nice increase of 11% to SEK 1.761 billion. In the quarter, as Peter mentioned, we have SEK -24 million in negative translation effects. If we looking on the margin side, you can see a nice increase from 18.6%- 19.2%. This was the highest margin that we have had for a quarter. The margin improvement was due to first, the good organic sales growth, but also continued operational improvements. Moving on to page 16, looking at the EBITA and the EBITA margin on a rolling 12 months. You can see an EBITA of SEK 6.43 billion. We had a margin of 18.5% on a rolling 12 months basis. It is an increase of 3% of the EBITA over the last 12 months, but 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 have SEK -67 million in the quarter. 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- SEK -109 million, a nice improvement. The tax rate for the quarter at 25% is also in line with the earlier communicated guidelines. Moving on to page 18, looking at the earnings per share. 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%. That was of course due to the higher EBITA, improved financial net, and the share buybacks. If we include items affecting comparability, it was an improvement from SEK 4.03- SEK 4.85. Moving on to next page 19. Looking at the cash flow, improvement of 22% in the quarter, from SEK 1 billion- SEK 1.217 billion. You can see here that the CapEx level has come down. There is a nice improvement year-over-year from the net CapEx. You can see an increase on the working capital side. That is, of course, partly related to that you see the good organic sales growth. We are 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. Very good cash flow conversion continues. You can see here a year ago we had 87%, and now we are ending the 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 a net debt of SEK 10.031 billion, and that is an increase compared to prior quarter. 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. 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 were at 11.6%, now we are at 12.6%. You can see that the trend from the third quarter in 2025 continues. 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's unchanged compared to what you saw end of first quarter. 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. Underlying tax rate should stay at current level of 25%. With 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 some comments on the outlook for the running quarter. Turning to page 25. Overall, we will see an improved demand in a lot of our end markets and basically struggle to see areas where we see not an improvement. It's looking good. 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. We also see that sales in the quarter were also the highest to date for a single quarter for us. 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 one, which is also these higher sales is turning into the best EBITDA and the best margin for a single quarter that we had to date. Cash flow following, we feel we're 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 couldn't say that we have any problems yet, but at last, we don't know what's going to happen a little bit. Some of the raw materials, we've been a little bit careful building some inventory to make sure we get both availability and also to safeguard a little bit of the pricing. That's been impacting us, but good management of accounts receivable, good management of payables. On top of that, as we have been guiding before, also CapEx is going down, which is also benefit. Good cash flow, good cash conversion, above 90% looking at the last 12 months. We also continue to do the share buybacks of roughly SEK 500 million per quarter, slightly lower in this quarter, but the overall guidance in relation to share buybacks is the same as before. Turning to page 26 on the outlook for the running quarter, 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, also that we have, let's say, the comparative figures going into Q3 is a little bit more challenging. You should read this that actually we see that the organic growth figure from eight might not be eight in the Q3. It will be a bump down on that, but we will still remain in a very positive territory. We feel confident on the demand, and we have good order books going into the quarter. Happy to answer more questions about that, but this is the way we would like to send a message. Demand is solid. Demand is good. Demand is actually sequentially improving. Let's say, if you're looking into Q3, we do expect the organic growth figures will be a tad down compared to what you saw in Q2. Then, of course, the 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 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 to page 27, Q&A, quickly turning to page 28, it is, I guess, opening up for questions. Please, go ahead. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Chitrita Sinha from JP Morgan. Please go ahead. Good afternoon. Thank you for taking my questions. I have three, please. Maybe just firstly on Sealing Solutions and maybe just commenting on the margin from here. Clearly a strong development organically year-on-year and a good drop-through. 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. Starting with that one, I don't say tougher comps in that respect for TSS. We still believe we can improve from the running margin. We expect a good demand overall, and we're running with fairly high gross profits here. If the volume continues as is, we are kind of positive also about the future. Of course, we're not talking about another two 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. Very clear. Thank you. My second question is just regarding your commentary on the product deliveries. 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? Yes. I mean, that is a long order, but generally that business that we refer to is very long orders, and we know the order book well in advance, so it's a very, let's say, low turn in the quarter, if I may say. That is why we feel confident that these deliveries. It's developed as expected and is well in line with what we guided for and believed in. We don't see any. You never know. There could be some, let's say, delays in certain areas, but we don't know that at all. It's not really a problem about availability or lack of orders. It's 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. Nothing really surprising or nothing. No challenges as we see it today. Sorry, just on the demand side. The demand side is, if you look at the project business, the demand is still, let's say, flat positive. We do, on this project part of Industrial Solutions, the main exposure is not the only one, but if you should pick someone, it's LNG development and all of that, and that is kind of still. Overall, let's say the activity level is high, and then of course, it's 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 and all of that. We are a solid order book. We have a, if I may say, for that business, an all-time high order book, that is more a matter of executing and making sure. It looks good, and that's not only for the next quarter, that looks good for kind of the next year plus in that part. It will be a little bit fluctuations in between quarters since it's sizable project deliveries. My final question is just on pricing. Just wanted to get a bit more color with regards to development in Q2 and then just what you're seeing at the moment as well. Say pricing, of course, a lot of, let's say, suppliers are indicating, let's say, cost ups and there's also some freight costs going up. 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. We believe the acceptance for price increases, well-motivated price increases, is good in a way. We don't see a challenge in adapting for this potentially higher raw material pricing. We should say that most of these raw material pricing have not really kicked in yet, but also neither has our price increases. We don't see that as a risk for us going forward on this cost inflation in relation to price increases. There we need to stay close to it and see what happens, and we adjust when we need, and we feel confident that we will be able to adjust if needed. Thank you very much. The next question comes from Alex Jones from BofA. Please go ahead. Great, thank you. If I can start on the outlook statement for Q3, you're talking about demand sort of an underlying basis being sequentially better. Are there particular regions or end markets where you're seeing that? Or is that across the board? You're also talking about, putting that to one 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? If I say the demand is surprisingly good, more or less all over. Of course, you have some automotive pockets which is weak, if I say that. Overall, the global automotive is good, and also, let's say, truck and buses is good. We see the aftermarket automotive picking up. There is, of course, but we don't really have this direct exposure to the weak areas of that. 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 you call industrial automating, robotics and stuff also where we see higher demand. The area construction industry, I already commented, although on a lower level. We see slight lights in the tunnel here for both commercial and residential construction. A big segment for us, which is hydraulic pneumatics, which is then driven by off-highway and agriculture also, where we after some kind of bit challenging quarters, we see also an uptick in this. I have to say, Alex, that it's looking fairly bright at the moment wherever you look. Medical Solutions is the one, but this is bumpy on, I say, product level, I should say. The start of programs and they are a little bit bumpy in the ordering. That is what we have. That is also maybe if I say on that, one of the main things here going on in Q3. If you look at our Q3 figure last year, we had, I think, 13% or something organic growth in Medical Solutions. We did comment already then that that was abnormally high. That is where we have to bring with us here now going into this quarter, where we have a comp with a fairly, let's say, high. We talk about a couple of percentage points down from this 8%. We still, let's say, expect it to stay on a very solid number above our long-term guidance of 4%. When it ends up at, if I can be very direct, if it ends up 5%, 6% or 7%, I don't know. We don't believe it's going to reach 8%. We neither believe. We don't see it's going to go below 4%. That is the ballpark figure to give some more clear guidance on that. As I understand, there was some confusion or some questions around it. That's really helpful. If I can just follow up one more on margins. You talk in the release about pricing and cost efficiencies having covered extra costs due to the geopolitical situation. I'm aware that you're particularly proactive, as a business on both those pricing and efficiency points. Was there any benefit in the quarter that you were able to mobilize the company to price and to be more efficient on cost ahead of some of those raw material inflations hitting the business? Or was it more a neutral effect on margins this quarter? Thank you. I would say it was neutral to positive, a very slim positive if that. Also when you have all of this kind of turbulent situation, change management gets a little bit easier. You can speed up a few actions, you can do the adjustments a little bit quicker, both in terms of pricing and own cost actions. Overall, this is not an explanation on the margin. It's not an explanation of growth. I've got some questions also on pre-buying. We don't see any sizable pre-buying. We don't see really customers protecting themselves on pre-buying, so we cannot. Of course, we're watching it carefully, but we cannot really see that driving sales growth or driving the development in any meaningful way. Of course, there could be individual cases, if you look at overall development, we cannot see that being any kind of meaningful impact in any way. Great. Thank you. The next question comes from Ope Otani from GS. Please go ahead. Hi, good afternoon, Peter, Fredrik, and Christofer. Two questions from me. Most of my initial questions have been answered already, low organic growth there. Could you just maybe talk through what's driving that? I think previously you talked about that being driven by life sciences, any idea what the run rate is maybe from when you speak to customers, especially in light of the fact that you've expanded capacity and that should be supporting organic growth? It's not. I know you're looking at the figures and detail, we do as well, it's really a small deviations here, that's a kind of a weekly delivery here and there where people, let's say, fill up their inventory or lowering their inventory. We don't see that as linked on a top level. I think it is a little bit bumpy in medical, I must say. We need to look at the rolling 12 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, we don't see that changing going forward. Now, of course, it gets tough comps in Q3 here as we had a plus, was it 13 last year? That was linked. Maybe we will get into a negative here in Q3, but that is not going to influence the rolling 12 figure that much. I am sorry on 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. We are not concerned. We see the development. We're keeping the customers, we're keeping the programs, we're growing in the programs, but the customers are ordering a little bit. They go a little bit up and down sometimes in the orders, which we honestly do not fully understand why. Great. Thanks. 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 therefore have tough comparables. Could you just give a sense of if there's any actual pull-forward demand, and particularly, effectively where the + 12 came versus your initial expectations going into the quarter? Let's say that the order book supported this going into the quarter. It was a 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. There's 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's growing rapidly within Sealing Solutions, 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's kind of the same, a little bit slight in automation, robotics. These two areas, both kind of hydraulics, off-highway, and automation has been a little bit negative development the last quarter. We've been waiting for the uptick in there, and now it's kind of, we're seeing it, but it's not dramatic changes. We see Sealing Solutions is very wide in exposure. It's a kind of a very wide growth in a lot of segments and also in also a lot of geographies. It's in a kind of a broad-based growth that we see in Sealing. Great. Maybe just one last one just on margins. Really strong in Sealing Solutions, but sort of flattish in Industrials and Medical versus quite strong organic growth. Could you just help us understand why the drop there was maybe less than expected in those two segments despite decent organic growth? I comment on that Industrial Solutions is slightly, let's say internal. You don't see it, but we guide you on that one. It's 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 don't really get the drop-through that we should be getting. That is the way it is sometimes. In Medical, once again, it's a fairly small business, so it's individual orders, individual customers that's driving it. We are kind of happy as long as it stays above 20%, and that is what we're aiming for, and that is what we do. We were about 20% in this quarter, and then whether it's 20.2% or 20.4% or 20.5% is kind of very similar as we see it. I don't know if that's enough or you? No, that's very helpful. Thanks very much for taking my questions. I'll jump back in line. Thank you. The next question comes from Forbes Goldman from Pareto Securities. Please go ahead. Hi, good afternoon. Just one 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's a low single- digit, let's say, compared to the overall group sales. The growth rate is tens of percent in organic growth. Of course, we are also looking there to be as fully transparent on that one, looking also for acquisitions and we're doing investments. We are expanding, for instance, our factory in China, in order to support organic growth there. We have recently inaugurated a new facility for semiconductors also in Malta for Europe, and we're looking also for a setup in U.S. We are investing into that and we're looking for continued kind of tens of percent of organic growth for the, let's say, foreseeable future. It is going to be a growing part of Trelleborg. Of course, we're focusing on organic growth, but also, hopefully be able to support it also with some supplementary acquisition. It's a priority segment for us. It's not as big as we want it in Trelleborg today, but it will be a substantially bigger part of Trelleborg if you look for the next three, five years. That is kind of the horizon where you're going to see this growing part of Trelleborg. Great. One more, final one from me. On aerospace, the capacity investments you've been doing in Morocco, when do you see those ramping up? How much capacity are you adding in total? On that one, we are not only adding in Morocco. Morocco is kind of a little specific to Airbus and Safran investment there to support them locally. 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 don't really want to give a guidance there, but we're also talking here, let's say, two-digit organic growth for the foreseeable future. Great. Thank you. The next question comes from Vivek Midha from Citi. Please go ahead. Thank you very much, everyone. Good afternoon. I have two questions that are related, so I'll ask 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've targeted in the past. Now that's one quarter and recognizing the TSS margin's typically lower in the second half of the year. I'm interested in the timeline you now see for getting to that 23% level. Would you see that as feasible in 2027, for example? Then a related question, following up on your comments about the hydraulics segment, the fluid power business. I think my understanding is that you've generally outperformed the broader customer base. It'd be 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 any peaks, or are we now above prior peaks? That'd be very helpful. Thank you. Starting with the hydraulics, I think we are quite some way away from the peak, actually. We are not yet. Construction equipment improving, but agriculture, which is another big sub-segment. I would say construction equipment and mining is on a good level. Mining on a top level, if I may say, but construction equipment's still growing and agriculture is still down. I don't see that happening. Also when you look at these previous peak levels, there is also quite a lot of aftermarket in that part as well. We feel that the inventory levels there are still relatively low. There is a double up, which we do expect to continue for some time. Difficult to give guidance, but I don't feel that we are, let's say, not even close. I don't think we are close to the peak on that one. That's going to take some time before we get that fully into the books. Then talk about the margin in Sealing Solutions. We have a good development. We do expect it to continue to improve, as you say. We are not at the peak level here of 22.5%. Then whether to give guidance for individual quarters and stuff is difficult, but we do expect there is improvement possibilities. Of course, if you have 23% over a cycle, 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. We are not seeing the ceiling being 23%. 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%. I don't know if you want to add something to that, but that's I think what I want to say about that one. No, that's very helpful. Thank you very much. The next question comes from Agnieszka Vilela from Nordea. Please go ahead. Thank you, and hi, Peter, Fredrik, and Christofer. Maybe starting with your gross margin, it was record high now in the quarter, 38.5%. We've seen that you've made very good progress on your fixed cost base, and you always address your production footprint. Looking at your OpEx cost, it has been quite sticky at 20% of sales. My question really is if you're looking into it and especially maybe on the admin side, which is actually higher as a percentage of sales compared to other industrials. Yeah. If you're looking at the quarter, it was a little bit higher year. It was higher year-over-year, if you look sequentially from Q1 to Q2, it was more on the same level. Of course, that's also dependent on other activities that we are doing, for example, M&A projects and so forth. That's a little bit ups and down, Agnieszka, from that point of view, if you're looking at the central costs. Yeah. Not really central costs, more like your OpEx, more of the administration costs that you present in your P&L. We have a different setup also, you can say, well, with the Sealing Solutions that we are running with a higher gross profit because we have that more solution selling, which is adding more sales and admin costs. That is part of our business model and also creating more margin on the bottom line. It's difficult to have a view when you benchmark, but of course we can always 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. Of course, it's different to compare other industrials. We're running with a different business model. Yeah. True. Fair point. Yeah, please go ahead, Agnieszka. No, maybe if you can add a comment, it would be appreciated. No. It's more a matter of a push on that. This is part of the way that we are able to get a better gross profit is because 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 fixed cost, but getting that back on a higher gross profit. That is called always the balance. If we cannot get the higher gross profit, then we have to lower the administration roll and the OpEx. If we can get it up to higher, we think the overall net is better in this way. Of course, we're looking at it all the time, and we're looking at ways to improve it and looking to become more efficient without bringing down the support to our customers in any way. Yeah. Fair point. Thank you. Then, my last question is on capital allocation. If I look at your M&A activity last year, by this time point, you completed four acquisition. I think this year we're running at two now. Can you just maybe talk a bit about your pipeline, what do you see? What do you expect, do you expect any deals to happen until the year-end? Pipeline in M&A is improving. There is a lot of activity at the moment. We was debated here before it will be any summer holiday or not for us because it's a lot of activity level. Of course, you never know in these acquisitions on whether you're actually able to make the deal at the end. The valuations are, in some areas, quite challenging, and we are not 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're a little bit more cautious in certain areas than we feel that they are. We are losing some deals, just to be transparent. Once again, the activity level is high, and we are confident that you're going to see us doing a number of M&As before year-end. I shouldn't say pipeline is bigger than ever, but it's on a number of projects ongoing at the moment is on a very high level in historic comparisons. Once again, with that said, you never know if a deal is done until it's actually done. Thank you for the color. The next question comes from Hampus Engellau from Handelsbanken. Please go ahead. Thank you very much. Two questions from me. I'm sorry for coming back to your outlook, Normally you guide with the adjustments for seasonal variations. Now you're bringing it in as a reason for somewhat weaker demand, Also bringing in that you should probably have some more price contribution in Q3 for compensating for raw materials 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, as earlier asked about maybe some more business on pre-buying in the quarter related to Sealing Solutions, or how should I think about this? Sorry for coming back to this. The guidance is actually, if you look sequentially, the business activity is up. If I remember the figures correct, we had a -1% in Q2 organic growth and then we had a +3%, +4% even in Q3 next year. This is a 5 percentage points difference. If you're adding that to this 8%, Of course it gets a very tough comparison. If you take that 8% and then 5% in difference is 3%, We actually see it's going to be better than 3%. We actually see an increased activity quarter-on-quarter. That is the way we calculate, Hampus. Did you follow my- Fair enough. That is the way we look at this. Just to clarify, we actually see an improvement quarterly, quarter-on-quarter, we see an improvement activity, Tougher comps means that we will most likely not be able to deliver 8% in Q3, It will be, as we see today, very solid organic growth also in Q3. Of course, there is some positives, there is some negatives. You're mentioning some positive, maybe a little bit more pricing, maybe a little bit higher project activity. We know Medical Solutions that's going to be negative because it's very tough comps in there. We have a high activity level in certain parts of Sealing Solutions, which is going to be challenging to actually bring more capacity on stream. There is some negatives, some positives, but it boils down once again, there is a couple of percentage points down on organic growth compared to this quarter. Once again, we expect a solid quarter also in Q3. Fair enough. Maybe the last one question on the autos, a 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. From your perspective, trucking is up, I know, but is it aftermarket that has stepped up further, or what is driving your auto business being broad-based good in the quarter given how OE business has been? I'll say aftermarket is up, truck and buses is up. Of course, we are global exposure. We still feel that the China, the Asian market is developing nicely. North America also quite okay. More sour in Europe, overall, most of our automotive exposure is linked to global technology more than global platform. We are very wide exposure, if it's growing in China, and growing in North America, then we grow with that. Of course, we absorb some lowering activity in Europe sometimes. Overall, we feel that it's a global exposure, which is fully global exposure, which is benefiting us in terms of, let's say, passenger car, automotive. That is the way we look- Are you gaining market share in China? Because the light vehicle production in China is down 8% in the quarter. Yeah, I think we do that somewhat, that we are, in certain areas, growing in that activity. It is the way it is, Hampus, and that is the way we can explain it. Yeah. I think so. We can only explain aftermarket is up, but we see also our sales to brake systems and these constant velocity joints and all of that it is improving in the quarter. There is some kind of probably market share gains. 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. The next question comes from Timothy Lee from Barclays. Please go ahead. Hi. Thanks for taking my questions. Actually, my first question, a little bit follow-up on the question before, on the automotive recovery and also related to the recovery on construction in TIS that you also mentioned in the slides. This segment has been weak for a while, and we are seeing some improvement. How do you see the sustainability of the recovery? Based on what you discussed with your customers, how do you think this segment will continue to be improving in next couple of quarters? You say the construction segment. I don't know if you're following, there is in Sweden, there is this company, Inwido, which is the biggest window and door maker, which recorded a record high order intake, actually it was yesterday or something, which is well in line. We see an uptick in that one. We see an uptick in the house construction, especially residential construction. Because that's the main exposure we have within TIS, is actually sealing profiles for windows and doors, and that is where we see an uptick from low levels, but nevertheless, an uptick on that one. Overall, construction, infrastructure construction, if I may say, that has been on a high level for some time. We have rail expansions, we have tunnels, we have harbors. That part of the industry has not really been down, that is developing nicely. I think that that's automotive, Tim, what you wanted more on that one, or what do you want to ask about automotive development, if I got it right from you? I was just wondering how sustainable for this kind of recovery will be, based on what you discussed with your customers. These segments have been weak for a while, right? 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 looking solid also going forward. It could be that it was, let's say, overly positive link to this aftermarket bounce back. It's not a major part of Trelleborg anymore, and that is a very small part of our exposure. It could be that this kind of good development. I don't know, Christofer wanted to add something as well. Well, Tim, you know that last year in Q2, we fell quite significantly in the aftermarket on our brake shims due to the tariffs, basically. The market has slowly come back in Q3, Q4, Q1, and now also in Q2. We're basically back where we started in the aftermarket. It's more a situation where we took a big hit last summer, and now are back to normal. Understood. Yeah, that makes sense. A little bit follow-up on the organic growth expectation as well. First of all, regarding the TIS, the delayed projects, which is going to deliver in the 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're expecting the organic growth in the third quarter to be slightly lower quarter-on-quarter, because of base, obviously. Does that imply that it's likely for the delayed project deliveries will be more towards the fourth quarter? We don't want to split there. Sorry there, Tim, we need to say that we see an improvement on that one, but it's not really major. It's an important part, but it's not explanatory part of TIS. It will improve, and it will be creating some positives, but not really any major difference to the overall figures. That is, I think the way I want to comment on that one. Yeah. Understood. Thank you. All right. Thank you very much. Thank you. The next question comes from Ope Otani from GS. Please go ahead. I do apologize. My question's already been answered. I'll go back in line. Thank you. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. There are no more questions at this time, I hand the conference back to the speakers for any closing comments. Thank you. Thanks to all of you for listening in, Thanks again for your continued interest in Trelleborg. Happy to support you with further comments. Christofer, main contact point, he's happy to take your calls and take your questions. Of course, Fredrik and myself, happy and eager to support as well if needed, If we can be helpful, do not hesitate to contact us. Do take care and speak to you soon, all of you. Thank you.