SLR Group-Starting the year with strong topline recovery-05/20/2026

Research evidence excerpt

SLR Group-Starting the year with strong topline recovery-05/20/2026

SLR Group

CREDIT NEWSFLASH | 20 MAY 2026

Starting the year with strong topline recovery

Q3’26 (Calendar Q1’26) is characterised by strong volume recovery with 15% increase in sold tonnage y/y. The recovery is

driven by increasing construction demand, starting to recover from low levels as well as stabilised agriculture segments.

Adj. EBITDA was flat y/y at EUR 2.9m (EUR 19m on LTM basis) given short term pressures from metal pricing given the lag

in price adjustment mechanism as well as temporary ramp-up efficiency constraints given sizeable step-up in volumes. SLR

continues to demonstrate solid FCF track record with EUR ~3m FCF on LTM basis despite cyclical pressures, noting that the

company has been cash generative throughout the downturn. Noting this cash flow track record as well as asset backing

implied in EUR 79m of PPE assets against EUR 62m in net debt, we consider the current bond pricing as attractive at mid-

quotes of 97.25% (~900 bps). Link to credit research slides.

Strong recovery in volumes and topline, EBITDA is flat y/y affected in the short term by pricing and ramp-up headwinds

• Volumes continued to develop positively with ~15% growth y/y to 28.9k tonnes, the highest level since Q3’24 (calendar Q1’24). This is

driven by gradual recovery in construction segment and stabilising trends in agriculture. The management notes continued geopolitical

uncertainties and expect more stable volumes going forward.

• On LTM basis volumes amount to 107 kt versus long-term average of 110-115kt and peak level of ~130kt.

• Volume growth translated to sales growth of 10% to EUR 56m. Price developed negatively as SLR has agreements to pass on metal price

changes to customers.

• Adj.