Trelleborg Q2’26 Results Conference Call Feedback

研报英文原文证据摘录

Trelleborg Q2’26 Results Conference Call Feedback

Chitrita C Sinha AC Europe Equity Research

(44-20) 7742-7176 16 July 2026 J P M O R G A N

chitrita.sinha@jpmorgan.com

Investment Thesis, Valuation and Risks

Trelleborg (Overweight; Price Target: Skr500.00)

Investment Thesis

• Trelleborg is an industry leader that has been improving across many metrics. It

holds a top-three position across most of the verticals it operates in and has no global

competitor across its offering.

• Transformation has been completed and now set to benefit. Trelleborg completed

the last of its many divestments in 2023, but given the sluggish end-market growth over

the last few years, it has not benefitted from a less cyclical and higher growth portfolio.

We are bullish into 2026 as we see many end-markets accelerating, of which Trelleborg

will be a strong beneficiary.

• Margin benefit from volume recovery is underappreciated. Trelleborg has

outperformed the sector in margin expansion for a number of years and has recently

sustained its margin despite negative volumes. A return to positive volume growth

should support margin improvement, especially in Sealing Solutions where the sluggish

top line has resulted in a slower-than-expected return to margin levels prior to the

Minnesota Rubber and Plastics acquisition.

• Strong balance sheet and FCF generation should support dividends, share

buybacks and M&A. We expect Trelleborg to continue increasing its dividend in line

with its 30-50% pay-out policy and also to retain its long-term share buyback

programme. This still leaves enough headroom for acquisitions to support growth, even

in years where organic growth is limited.

Valuation

Our December 2027 price target is based on a 13.7x EV/EBITA multiple applied to our 2028

forecasts.