Sweden's Alleima Q4 revenue falls more than expected on currency hit, weak markets

Alleima AB

27/01/2026 10:40

Overview

Sweden-based alloy manufacturer's Q4 revenue decreased 12%, missing analyst expectations

Adjusted EBIT for Q4 was SEK 364 mln, affected by currency headwinds and weaker markets in Europe and North America

Company maintained positive free operating cash flow of SEK 422 mln in Q4

Outlook

Company continues efforts to reopen Sandviken plant, boosting nuclear tubing capacity by 60%

Alleima invests in new production line in China to strengthen chemical and petrochemical position

Company aims to permanently reduce costs through restructuring and efficiency measures

Result Drivers

WEAK MARKET CONDITIONS - Revenue decline driven by weak market for short-cycle business in Industrial and Chemical and Petrochemical segments, particularly in Europe and North America

CURRENCY HEADWINDS - Adjusted EBIT impacted by significant currency headwinds, with negative effects of SEK 163 mln

PRODUCTION LIMITATIONS - Earnings negatively affected by delayed ramp-up after maintenance stoppage at Sandviken production unit

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
SEK 4.49 bln
SEK 4.64 bln (4 Analysts)
Q4 Adjusted EPS
SEK 1.06
Q4 EPS
-SEK 0.05
Q4 EBIT
Miss
SEK 15 mln
SEK 498.50 mln (2 Analysts)
Q4 Adjusted EBIT
SEK 364 mln
Q4 Adjusted Free Cash Flow
SEK 422 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the iron & steel peer group is "buy"

Wall Street's median 12-month price target for Alleima AB is SEK91.00, about 3.6% above its January 26 closing price of SEK87.85

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nWkr6mcDNP

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)