Trelleborg AB

Trelleborg maintains a conservative capital structure with a debt-to-equity ratio of 0.17, indicating a low reliance on debt financing. The company holds 5.14 billion SEK in cash and equivalents, but after subtracting long-term debt of 7.02 billion SEK, net cash is negative, signaling potential liquidity constraints. The current ratio of 1.88 suggests the company can cover its short-term liabilities with its current assets, but the negative net cash position raises concerns about liquidity risk.

Profitability metrics show a return on equity (ROE) of 2.39% and a return on assets (ROA) of 1.68%, both below the typical thresholds for industrial machinery firms. The operating margin of 15.75% (calculated from operating income of 1.37 billion SEK on revenue of 8.71 billion SEK) is in line with industry norms, but the net margin of 11.34% (988 million SEK net income) is slightly below the median for the sector.

Trelleborg's revenue is concentrated in a few key markets, with disclosed segments including Automotive, Offshore & Marine, and Industrial. The company's geographic exposure is primarily in Europe and North America, with emerging markets contributing a smaller share. This concentration increases vulnerability to regional economic downturns.

The company's growth trajectory is modest, with analysts projecting a mean price target of 408.40 SEK, up from the current market price. However, the absence of strong-buy ratings and the median recommendation of 2.75 suggest a cautious outlook. Historical revenue growth has been stable, but the free cash flow of 960 million SEK indicates limited capacity for aggressive reinvestment or shareholder returns.

Risk factors include liquidity constraints due to the negative net cash position and the potential for dilution, although the risk is currently assessed as low. The company has not issued additional shares recently, and there are no immediate signs of dilution pressure. However, the negative net cash position could necessitate future financing, which may involve equity issuance.

Recent events include the publication of the latest financial results, which show a slight improvement in operating income compared to the prior year. The company has not disclosed any major strategic shifts or capital-raising activities in the most recent filings. Analysts have maintained a balanced outlook, with five buy and five hold ratings, reflecting a neutral stance on the stock.

Trelleborg AB (TRELB.ST) is currently undergoing its initial analysis phase, meaning there is no prior historical basis for computing material changes or deltas in its financial profile. Consequently, no specific operational shifts, earnings surprises, or strategic pivots can be identified from recent data streams to drive a narrative of change. The company’s current market footprint is defined by a modest level of analyst coverage, with eight analysts tracking the stock. However, the firm does not currently hold membership in any major indices, and data regarding top institutional holders and executive officer counts is not available in the current dataset. Recent monitoring signals indicate a period of low activity, with zero dispatches recorded daily from late June through mid-July 2026, aside from a single dispatch on July 16. This lack of frequent news flow or sentiment signals suggests a quiet period in terms of public disclosures or market-moving events for the ticker during this window. Given the absence of material changes and limited recent signal activity, the significance of Trelleborg AB’s current status lies in its baseline establishment. Investors and analysts are working from a fresh data point, relying on foundational financials, estimates, and ESG metrics [doc:trelb.st-ha-financials] [doc:trelb.st-ha-estimates] [doc:trelb.st-ha-esg] to form initial views rather than reacting to recent volatility or news.

The company generated SEK 2.2 billion in free cash flow in FY2026, reflecting strong cash generation capabilities despite flat revenue growth.

With a debt-to-equity ratio of 0.17, Trelleborg maintains a conservative leverage profile compared to the 0.20 cohort median.

Analysts assign a mean price target of SEK 408.4, suggesting potential upside given the current market valuation context.

Trelleborg's cash conversion ratio of 1.89 is nearly double the industry median of 0.95, indicating efficient working capital management.

Net income declined 3.8% year-over-year to SEK 3.6 billion in FY2026, signaling weakening bottom-line performance despite stable revenues.

Revenue growth stalled at just 0.5% year-over-year in FY2026, indicating a lack of top-line momentum in the current fiscal period.

Return on equity of 2.4% falls below the industry median of 3.6%, suggesting less efficient use of shareholder capital than peers.

The four-year net income CAGR is negative at -0.8%, highlighting a long-term trend of declining profitability for shareholders.

Trelleborg faces medium liquidity risk, which could constrain financial flexibility during periods of market stress or operational disruption.

Revenue kr 8.61B, −2,9% YoY; Operating income +0,4% YoY.

• ▍Revenue kr 8.61B, −2,9% YoY
• ▍Operating income +0,4% YoY
• ▍Net income +3,9% YoY
• ▍Free cash flow +14,6% YoY
• ▍Net margin 11.4%

Revenue kr 8.38B, −4,6% YoY; Operating income −9,0% YoY.

• ▍Revenue kr 8.38B, −4,6% YoY
• ▍Operating income −9,0% YoY
• ▍Net income −10,4% YoY
• ▍Free cash flow +9,6% YoY
• ▍Net margin 10.0%

Revenue kr 8.53B, +1,1% YoY; Operating income +6,7% YoY.

• ▍Revenue kr 8.53B, +1,1% YoY
• ▍Operating income +6,7% YoY
• ▍Net income +7,2% YoY
• ▍Free cash flow +11,8% YoY
• ▍Net margin 10.5%

Revenue kr 8.55B, −1,8% YoY; Operating income −0,7% YoY.

• ▍Revenue kr 8.55B, −1,8% YoY
• ▍Operating income −0,7% YoY
• ▍Net income −6,6% YoY
• ▍Free cash flow −184,3% YoY
• ▍Net margin 10.8%

Revenue kr 8.87B; Operating income kr 1.40B.

• ▍Revenue kr 8.87B
• ▍Operating income kr 1.40B
• ▍Net margin 10.6%

Revenue kr 8.78B; Operating income kr 1.34B.

• ▍Revenue kr 8.78B
• ▍Operating income kr 1.34B
• ▍Net margin 10.6%

Revenue kr 8.44B; Operating income kr 1.25B.

• ▍Revenue kr 8.44B
• ▍Operating income kr 1.25B
• ▍Net margin 9.9%

Revenue kr 8.71B; Operating income kr 1.37B.

• ▍Revenue kr 8.71B
• ▍Operating income kr 1.37B
• ▍Net margin 11.3%

Revenue kr 34.33B, +0,5% YoY; Operating income +0,6% YoY.

• ▍Revenue kr 34.33B, +0,5% YoY
• ▍Operating income +0,6% YoY
• ▍Net income −3,8% YoY
• ▍Free cash flow +0,3% YoY
• ▍Net margin 10.5%

Revenue kr 34.17B, −0,3% YoY; Operating income +7,8% YoY.

• ▍Revenue kr 34.17B, −0,3% YoY
• ▍Operating income +7,8% YoY
• ▍Net income −62,9% YoY
• ▍Free cash flow +4,0% YoY
• ▍Net margin 10.9%

Revenue kr 34.29B, +13,9% YoY; Operating income +1,6% YoY.

• ▍Revenue kr 34.29B, +13,9% YoY
• ▍Operating income +1,6% YoY
• ▍Net income +91,5% YoY
• ▍Free cash flow +2,8% YoY
• ▍Net margin 29.4%

Revenue kr 30.09B, +26,5% YoY; Operating income +26,3% YoY.

• ▍Revenue kr 30.09B, +26,5% YoY
• ▍Operating income +26,3% YoY
• ▍Net income +41,5% YoY
• ▍Free cash flow +35,4% YoY
• ▍Net margin 17.5%