HEXPOL AB (publ)

Strong Q3 performance with broad-based growth (good): - Sales: SEK 5.3bn (+13% YoY, all “basically” organic; 12% organic growth, ~1% FX). - Adjusted EBIT: SEK 723m (+5% YoY). - Adjusted EBIT margin: 13.6% (-110 bps YoY, mainly due to higher OpEx and a one-time management change cost included in adjusted EBIT). - Cash flow: ~SEK 700m; Net debt/EBITDA ~1x (improved vs last year) → financial position remains strong.

Growth drivers and market tone (opportunity + mild challenge): - Volume + price both contributed: organic growth driven by both higher volumes and increased prices; management said pricing was compensated for volatile raw materials. - End-market/region: North America stable/more resilient, Europe more challenging, Asia strong (Asia +16% YoY, mainly Wheels). - Supply chain: volatile raw material pricing but no major delivery interruptions reported.

Business segment highlights (good but mixed margins): - Rubber Compounding: SEK 3.3bn sales (+10% YoY; ~9% organic); EBIT SEK 483m, margin 14.5% (~down YoY). - Margin pressure attributed to (1) higher OpEx/resources for growth/efficiency and (2) some new lower-margin contracts in North America; company intends to improve profitability over coming quarters. - Capacities/captive volumes: no major increase expected long term because customers aren’t adding much captive capacity right now. - Thermoplastic Compounding: +19% organic growth (second consecutive strong quarter); EBIT ~SEK 157m (+31% YoY). - Engineered Products: Wheels strong, especially in Asia → EBIT margin ~21% (very strong).