HEXPOL AB (publ)

Strong Q3 performance with broad-based growth (good): - Group sales SEK 5.3bn, +13% YoY, driven by 12% organic growth (currency +1%). - All three business areas and all geographies grew: North America +15%, Europe +10%, Asia +16%. - Adjusted EBIT SEK 723m (+5% YoY); adjusted EBIT margin 13.6% (down ~110 bps YoY). - Management highlighted volatile raw materials but said they compensated via customer pricing; no major delivery interruptions.

Margins impacted by investments + one-off items (bad / watch): - EBIT margin down despite similar gross margin: mainly OpEx up (IT/digitalization + more people resources). - OpEx was flat sequentially (Q3 vs Q2) but higher vs Q3 last year—suggesting a new run-rate around current levels into next quarters. - One-time cost related to management team changes announced end of July—affecting EBIT comparability. - Example: Rubber Compounding had margin pressure tied to investments/OpEx and some lower-margin new contracts in North America.

Segment strength: Thermoplastic strong, Engineered Products very strong (good, with data): - Thermoplastic Compounding: +19% organic growth (2nd consecutive high-growth quarter). EBIT SEK ~157m (+31% YoY); margin 10.0% (+80 bps YoY). - Engineered Products: Organic sales +10%, EBIT margin ~21% (very strong; EBIT ~SEK 83m, +30% YoY), boosted notably by Wheels in Asia. - Rubber Compounding: sales SEK 3.3bn (+10% YoY; 9% organic), but EBIT margin 14.5% (lower YoY), reflecting industry overcapacity, limited new captive capacity investments, and contract mix/investment burden.