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HEXPOL Q4 2025 Presentation January 29, 2026 A Material Difference 1
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Q4 2025 Presentation Agenda • Business Performance • Financial Overview • Summary • Q&A Presented by Klas Dahlberg CEO Peter Rosén CFO A Material Difference 2
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Business Performance A Material Difference 3
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• Q4 Demand and sales • Total volumes increased in the quarter, defending our market position within Compounding. • Building and Construction , Wire & Cable, Tire (tolling) showed increased demand. Automotive was on a relatively low level but stable versus last year, despite somewhat extended holiday close downs. • There is negative price/mix effect in Compounding, both in Europe and America. This has a negative impact on the sales value and on the margin. • Continued soft demand in the US, triggered by US tariffs and US trade policy. This impacts all our businesses in the US. • European market relatively stable despite uncertainty. • Competition to get volumes, but insourcing is stabilizing in the US and in Europe. • Q4 performance • Q4 sales 4 254 MSEK (4 694) a decrease in sales of 9% driven mainly by negative FX effects of 9%. Acquired Piedmont. and Kabkom added some 3% in sales, offset by lower organic sales of some 3%. • EBIT margin at 12,0% (13,4%) and EBIT 508 MSEK (631) where negative FX of 61 MSEK and negative mix affects the margin. • Strong cash flow of 1 037 MSEK (1 171). • Ordinary dividend proposed unchanged at 4,20 SEK/share (4,20) • Sustainability focus • We are proud to announce that we have reached 80% CO2 reduction by the end of 2025 (target was 75%). • The work with our updated sustainability strategy and our new sustainability targets is ongoing and will be completed during Q1 2026. Increased Volumes In A Continued Tough Market A Material Difference 4
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• HEXPOL Compounding • Increase in volumes in both Europe and North America. • Sales of 3 911 MSEK (4 308) impacted by negative FX of 9% and mix. • Building and Construction, Wire & Cable and some smaller segments showed increased demand. • Automotive end customer segment in line with last year. • Raw material prices relatively stable. • Lower Operating Margin affected by unfavorable mix and OPEX in relation to sales. • HEXPOL Engineered Products • Sales of 343 MSEK (386) negative FX impact of 8%, sales in line with last year. • Increased operating Profit and Operating Margin on good level. Increased Volumes In A Continued Tough Market A Material Difference 5
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The HEXPOL M&A Process • Deep knowledge of our current markets and continuous analysis of adjacent markets. • Long-term relations with many Financial Sponsors, PE-funds and Industrial owners. • Proactive M&A search in key areas together with Industry experts. • Continuous collaboration with Investment Banks active in the chemicals mid-market sector. • Reinforce our reputation as a fair, professional, agile and flexible acquirer. Convince owners of key assets to sell ”the Short List” Acquisition ready ”Close deals” Strategic analysis and identification of opportunities ”the Long List” 02 01 03 6
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Strategic Priorities until 2030 Increase activities to grow organically Raised M&A agenda, especially within Thermoplastics Continued focus on Operational Excellence Priorities • Continue reviewing the manufacturing footprint • Production technology, AI and automation • Move product portfolio to more profitable segments Priorities Focused and well-defined M&A strategy • Rubber Compounding - Protect and strengthen market leader positions in Europe & Americas (selective) • Thermoplastics - Build a broader product portfolio and expand geographically (High growth) • Engineered Products - Attractive segments and geographies. Focus on Wheels (Opportunistic) Exploring options to expand in India, China and Southeast Asia Priorities • Target profitable segments with structural growth – fill portfolio gaps • Increase sales capacity to broaden the customer base • R&D focus to enhance product innovation and Sustainability leadership • Captive conversion 7
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Financial Overview A Material Difference 8
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Regional Development Q4 Sales Development A M E R I C A S E U R O P E A S I A 44% -2% 7% +1% 49% -16% Share of HEXPOL sales Sales development vs same period LY -9% -3% -9% Sales development MSEK A Material Difference 9 +3% 4 694 4 254 Q4'24 FX Effects Organic Sales Acquisitions Q4'25
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Q4 Financial Overview Highlights • Sales of 4 254 MSEK • EBIT of 508 MSEK • EBIT Margin of 12,0% • Strong Equity/Asset ratio of 61% • Strong cash flow A Material Difference 10 Key figures Jan-Dec Jan-Dec MSEK Q4'25 Q4'24 2025 2024 Sales 4 254 4 694 19 324 20 437 EBITA, Adjusted 545 667 2 933 3 384 EBITA-Margin, Adjusted, % 12,8 14,2 15,2 16,6 EBITA 545 592 2 933 3 309 EBITA margin, % 12,8 12,6 15,2 16,2 EBIT, Adjusted 508 631 2 791 3 247 EBIT Margin, Adjusted% 12,0 13,4 14,4 15,9 EBIT 508 556 2 791 3 172 EBIT Margin, % 12,0 11,8 14,4 15,5 Profit before tax 487 514 2 653 3 001 Profit after tax 339 353 1 943 2 220 Earnings per share. Adjusted, SEK 0,98 1,28 5,64 6,70 Earnings per share, SEK 0,98 1,02 5,64 6,45 Equity/assets ratio, % 61 64 Return on capital employed, % R12 14,7 16,9 Operating cash flow 1 037 1 171 2 799 3 012
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Q4 Financial Highlights Sales MSEK Adjusted EBIT MSEK -9% -19% Adjusted EBIT Margin % -10% A Material Difference 11 4 694 4 254 Q4'24 Q4'25 631 508 Q4'24 Q4'25 13,4% 12,0% Q4'24 Q4'25
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Q4 EBIT Drivers -19% Highlights • Of the 123 MSEK lower EBIT, 61 MSEK is driven by negative FX effects • The main underlying driver of the lower EBIT is lower sales • The gross margin in percentage is on same level as last year • OPEX increases driven by acquired companies and eg increased IT costs Adjusted EBIT MSEK A Material Difference 12 631 - 85 7 - 45 508 Q4'24 Sales Gross Margin OPEX Q4'25
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Q4 HEXPOL Compounding Highlights • The lower sales are negatively impacted by FX effects of 9%. Acquisitions add 3% in sales while organic sales are down 3% • The lower organic sales are positively impacted by higher volume but offset by negative price/mix effects • The higher volumes are seen with building & construction, wire & cable and medical while automotive volumes are on same level as last year • EBIT decreases compared to LY following on the lower lower sales and OPEX in relation to lower sales Sales MSEK Adjusted EBIT MSEK -9% -22% -15% Adjusted EBIT Margin % A Material Difference 13 4 308 3 911 Q4'24 Q4'25 566 439 Q4'24 Q4'25 13,1% 11,2% Q4'24 Q4'25
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Q4 HEXPOL EngineeredProducts Sales MSEK EBIT MSEK -11% +6% Highlights • The lower sales are negatively affected by FX effects of 8% • EBIT increases with 6% while the EBIT margin increases with 20% following on higher efficiency and good mix +20% EBIT Margin % A Material Difference 14 386 343 Q4'24 Q4'25 65 69 Q4'24 Q4'25 16,8% 20,1% Q4'24 Q4'25
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Q4 WorkingCapital Highlights • Compared to last year, the acquisition of Piedmont and Kabkom added some 50 MSEK in working capital MSEK A Material Difference 15 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 0 500 1 000 1 500 2 000 2 500 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25
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Q4 Cash Flow Highlights • Strong cash flow in the quarter driven by efficient management of working capital Cash Flow MSEK A Material Difference 16 508 146 548 - 165 1 037 EBIT Depreciation Working capital Investments Cash Flow
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Q4 Net Debt Strong financial position Highlights • Strong financial position • Net debt affected by dividend payments, acquisition of the minority share of almaak and the acquisition of Kabkom during 2025 A Material Difference 17 31-dec 31-dec MSEK 2025 2024 Cash at hand 1 145 1 233 Used credit facilities -4 329 -3 468 Net debt -3 184 -2 235 Net debt/EBITDA* 0,95 0,59 * EBITDA is R12 months
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• Volumes increased in the quarter • Europe showed stable sales compared to LY • Lower demand in North America affected by the high uncertainty related to US trade policy • Engineered Products stable with good profitability • We reached our carbon footprint target for 2025 • We continue to focus on our strategic agenda for 2030 Summarizing Q4 A Material Difference 18
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Q&A A Material Difference 19
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www.HEXPOL.com ThankYou A Material Difference 20