Alleima (ALLEI) Q1 2026 earnings summary

Executive summary

• Market uncertainty and geopolitical instability, especially in the Middle East, persisted, impacting customer investment and short-cycle business.

• Key segments like medical and industrial heating (Kanthal) showed resilience and favorable performance, with strong organic order intake.

• Efficiency measures and improved cost position began to yield positive effects, but could not fully offset negative currency impacts and lower sales.

• Sustainability performance remained strong, with over 81% recycled steel and a record-high sustainable product portfolio at nearly 26%.

• Strategic investments were completed in Industrial Heating and ongoing in Medical to support long-term growth.

Financial highlights

• Order intake for the rolling 12 months was SEK 16,266 million, down 12% organically, mainly due to prior year major orders and OCTG declines.

• Quarterly revenues reached SEK 4,576 million, a 5% organic decline year-over-year, with negative FX and alloy effects.

• Adjusted EBIT was SEK 386 million (margin 8.4%), down from 10.5% last year, diluted by SEK -93 million currency effects.

• Adjusted EPS for the quarter was SEK 1.14, negatively impacted by lower EBIT.

• Free operating cash flow was SEK -65 million, reflecting lower EBITDA and working capital seasonality.

Outlook and guidance

• Market instability and geopolitical uncertainty, especially from the Middle East, are expected to persist into Q2 2026, dampening investment and short-cycle business.

• Solid backlog in umbilicals, oil and gas, industrial heating, medical, and nuclear segments provides near-term delivery visibility.

• Full-year CapEx guidance remains at SEK 1,100 million, with Q1 spend at SEK 160 million.

• Currency effects for Q2 estimated at SEK -60 million; positive metal price effect of SEK 150 million anticipated.

• Normalized tax rate for 2026 expected in the 23%-25% range.