Trelleborg AB (publ)

Thank you and welcome to all of you to our let's say Q4 call of 2025. Peter Nilsson speaking and joined on the call also by Fredrik Nilsson our CFO and also supporting us here in the call is also Kristoffer Sjögren our Head of Investor Relations. As usual we're going to use the slide deck which has been on our webpage for some time now for some hours. and use this as guiding us through and as usual I kick off by some overall comments and commenting for our business areas and sustainability before turning over to Fredrik to guide us through the figures and then summing up with the summary and then ending up with the Q&A session. So once again back to the slide deck turning to page two the agenda highlights, starting and then business areas, financials, summary outlook and Q&A. Quickly turning to page three. We see, let's say, continued margin improvement in the quarter and we can say the quarter overall is actually somewhat better than it looks when you're looking at the figures. And I'll get back to that and commenting on that as we move along. Sales in the quarter, slim organic sales growth, slightly shy of our expectations, but it doesn't really mean that the business actually was worse. It's actually a slide in a few project deliveries in industrial solutions, which is pushing down the organic sales somewhat, but that's going to come back. I'm going to comment on that later as well. M&A adding 3%, and then, of course, like... most companies reporting Swedish Krona so a fairly heavy wind against us and from currency which is pushing down the report to say since Swedish Krona by nine percent EBITDA well managed we are delivering a record high margin in the quarter 18.4 which is best ever for us for Q4 let's say result of good control let's say a good mix and good overall cost control and good overall price control so I'm fairly happy with the margin in the quarter and also here of course we have a substantial currency translation effect of minus 140 which fully explains the absolute figure deviation compared to a year ago. We have items affecting comparability, 176, higher than last year, but in line with guidance. Cash flow, very strong, strong ending of the quarter in terms of cash, which we also see as a quality item for overall. We managed to cash good, which is both in terms of CapEx, working capital, So good delivery of cash, which of course is something we are happy with. Share buybacks continue, same pace as before, roughly half a billion a quarter. And on top of that, the board is also proposing the increase of the dividend from 750 to 8 kronas, which is going to be confirmed at the upcoming AGM in April. And you also know the acquisition here happening just after the ending of Q4, we're buying a Smaller, but important business for us in Austria, which is focusing actually to improve our efficiency and technology in manufacturing more than adding kind of external sales. But that is also something we're going to create some foundation for improved efficiency as we move along both. in the ceiling solutions as well as in medical solutions. So this is, let's say, the overall headlines. So turning to the page, next page, page four, commenting organic sales. And here is the one that actually looks, it is slightly better than it looks. I mean, Europe continuing. I mean, we've seen let's say, improvement in organic sales throughout the year, starting with a fairly solid minus in Q1 and then step by step in moving. And then we are up to plus four organically in Europe in the quarter. America's continuing in a good way, in a way, on a solid positive. And then we have Asia and the rest of the world turning negative. But I mean, the explanation is here, which is linked also to industrial solutions. It's actually a result of lower produce deliveries in a few countries here some if I may say so some odd countries like Taiwan Malaysia with Australia orders Morocco which is pushing it down while we continue to deliver a solid organic positive growth in the main market China and India so overall it's actually a better development than the let's say reported figure here minus four shows turning to the next page back to the agenda and quickly turning to page six and commenting on the business areas, industrial solutions, I've already been touching on that for a few times here, lower project sales and that is not really a result of lower order intake, I mean we have a good order intake, we continue to build the order book but there's been a few bigger projects which has been delayed And it's not really delayed causing by problems. It's more that some of this produce related to LNG and temporary also to construction, tunnel seals and stuff like that, the produce has been a bit delayed. It's actually full in the pipeline there and all the books for us and for the market is delayed. good but but nevertheless in in the quarter we impacted and i mean already comment on that we do not expect that to really bounce back already in q1 we will see it q4 and q2 next year and onwards what we're going to see so we are not concerned about the full year of 26 but it will be a little bit soft ending a little bit soft soft start of 26. But overall, once again, I want to say on this, lower project deliveries is actually deliveries, it's not order intake. Order intake is still strong, and we continue to build order book in this segment. Continuing to see, as I've already said, it's what we call diversified industrials. We're exposed to a variety of segments here and also within construction. we see kind of the more, say, window-related, if I may say, windows and facade sales, which is still a little bit depressed, while other segments in construction, like water infrastructure, is actually performing better. So there is, let's say, a mix within this, but overall, once again, positive, actually, in this area, and all of the business area is being cooled down by these kind of lower sales, lower deliveries in the quarter related to the project-related part of the business area. Automotive stable, good before small aerospace sales in industrial solutions, but that's developing nicely in the quarter. And we see actually a small decrease in EBITDA, which is fully let's say, explained by negative currency translation rate effects, because overall the margin is improving. We continue to invest in structural improvement here. We get the more efficiency in the structure. And then we have a slight, let's say, sales mix negative as well. Sorry, sales mix positive in the quarter, which is also pushing it up a little bit. But overall, better than it looks. That is kind of the overall situation. message that we want to send in relation to industrial solutions. We also note in industrial solutions there's also been quite a lot of acquisitions throughout the year and they are being integrated in a successful way and we see kind of also improvements as these businesses are getting even more, let's say, included in our daily operations. So moving then to the next page, page seven, and comments on medical solutions organic sales growth margins up and if you say a slight negative let's say development within teas within industrial solutions we say medical was slightly better than we expected by some extra orders in the quarter from some of our key customers and which then pushed organic sales up to plus five solid sales growth in Europe and Asia while North America still we call it sluggish which is still a little bit up and down it is a little bit volatile more volatile than we kind of should be our customers a little bit ordering in a let's say uneven way so this is something that we continue to monitor overall, still positive in MedTech, but once again, good development in Europe while still North America can be improved. Life science, although small in the business area, but continue to deliver strong growth and continue to look very positive. And also here we have EBIT A down, but also fully explained by the exchange rate effects. As you see, the margin is actually up year on year. supported by these higher volumes, but also in this area we are initiating some efficiency improvement. We have some restructuring within the business area which is going to improve the overall efficiency and we see the first improvements in this quarter. We also know with great satisfaction that we now have a factory in Costa Rica up and running, although at very small volumes to start with, but that is kind of offering new opportunities for us to both on the local market in Costa Rica, but also as a very efficient facility able to support our overall business in North America. So overall good development in medical solutions and definitely moving in the right direction. Then turning to page eight, ceiling solutions, solid organic growth. We see an improvement that we see here and we have seen also even though we have a That's a solid organic improvement. We continue to be loadable. We continue to see a good demand going forward and also here adding M&A to improve sales even further. And we see that actually industrial segments all over the world is improving. Automotive segment is down, mainly in Europe and somewhat sluggish here as well. So sometimes varying also in other areas and especially we continue to be be hurt a little bit in the aftermarket of automotive when he had this as a break related businesses which is still challenged a little bit and that is where we are also which is driving a little bit a negative mix actually if you look at the overall and which explains a little bit why we are not getting kind of the add-ons here by the higher volumes to push up the margin Aerospace continue to develop very well. Good order intake, order intake well above sales and continue to build a good order book. Also here, of course, the supply chain is fully loaded. And I mean, although the ambitions for Boeing Airbus is high, we don't expect them really to deliver as they are guiding. But nevertheless, we continue to see a very good development within aerospace. EBITDA a little bit up, margin a little bit up and then also here we have also of course like everywhere else a substantial negative lesser currency impact and we also note I mean we are of course as you know aiming for an improvement here in the margin and we are very certain that it's going to happen but in this quarter we are slightly hurt with these acquired businesses also here which is coming in with a slightly lower margin and also as I already mentioned a slight thin let's say also sales mix negative effect on the margin so overall good development and ceiling solutions moving in the right direction and the markets are kind of supporting us going forward here as well Turning to page nine a few comments on sustainability we continue to improve and we're getting to a level where yeah almost as far as we can go in this we've done a good job in this in many for many years, continue to improve year on year. 28% down in CO2. And looking at the next page, where we talk also share of renewable and fossil-free electricity, we're actually approaching 100% here, up at 98. And I mean, as you know, you cannot really improve a lot from this level. So this is more a challenge to maintain on this level. So good development in CO2 and good development in renewable and fossil-free electricity, which we are very satisfied with. So with that, turning to page 8, agenda, and then turning over to Fredrik on the financials. Turning to page 12, I guess, Fredrik, and then your turn.

Thank you so much, Peter. Let's start looking into the sales development. Report net sales decreased by 5% and amounted to 8,380,000,000 in the quarter. We have negative translation effects by 9% in the quarter. As Peter mentioned, we had an organic sales growth of 1%. And then we saw both ceiling solution, medical solution growing 5% organically, while industrial solution decreased by 3%. Structural changes added 3% growth of sales in the quarter. Moving on to page 13, showing more The historical sales growth over some quarters. And if you look at the fourth quarter, we achieved 4% sales growth at constant FX. Moving on to page 14, showing the quarter sales and the rolling 12 months. Looking for the full year of 2025, we have a sales amounting to 34.7 billion, which was flat versus last year. Looking for the full year, we have an organic sales growth of 1%. Structural changes added 5, which was then offset by negative translation effects of 6%. Moving on to page 15, looking at the EBITDA. And looking at the EBITDA excluding items affecting comparability, down 3% to 1,542,000. In the quarter, we have 140 million in negative translation effects. So if we look at EBITDA at fixed FX, it was up 6%. And then on the margin side, up from 18.1 to 18.4. And that was the highest margin for a fourth quarter. Moving on to page 16, looking at the full year, we saw an increase by 2%. and got an EBIT A for the full year of 6,286,000,000. And here we also have a substantial negative FX impact of 329 million for the full year. And looking at the margin for the full year of 2025, we have 18.3, which was the highest to date for a full year. Moving on to page 17, looking at some details into the income statement we have items affecting comparability minus 176 million in the quarter then we have 222 million that were related to restructuring and then we have a positive effect of 46 million which was revaluation of an additional purchase payment recorded earlier as the liability financial net minus 111 million in the quarter slightly higher than last year but that is mainly due to a higher debt compared to Q4 last year tax rate for the quarter 25% well in line with communicated guidance for the full year moving on then to earnings per share on page 18 if you look at the earnings per share exclude item 50 comparability up from 4.24 to 4.30, increased by 1%, and that is mainly due to higher profitability in the effect of the ongoing share buyback, which then has been offset by negative translation effects. If we look at fixed FX, earnings per share has been up 10%. Moving on to page 19, looking at the cash flow. As Peter also mentioned, we have a really good cash flow in the fourth quarter, up 3%, giving us a cash flow of 1,726,000,000. And to summarize it on a high level, we have a little bit lower capital expenditure that had a positive impact, and we continued also to generate a positive working capital movement in the quarter. Page 20, cash conversion. up from 89 to 93 on a rolling 12 months basis. And in other words, we continue to deliver a high cash conversion ratio, despite that we have invested on a high level through the year. Moving then on to the gearing and leverage development. We ended the quarter with a net depth of 7 billion, 216 million. We have done share by back of 508 million during the quarter. And looking at the equity ratio, end of the year at 20%. And our net debt in relation to EBITDA was one. In other words, our balance sheet remains very strong. Moving on to page 22, looking at the return on capital employed excluding items of comparability. 12.1 for the fourth quarter and here you can actually see that we are now have a couple of quarters with a sequential improvement from Q2 to Q3 and now also from Q3 to Q4. And then looking into 2026 some guidance for 2026 CapEx 1 billion 450 million for the full year Restructuring cost expectation is 375 million for the full year. Amortization of... Intenuables 650 and underlying tax rate 25%. And by that, I would like to hand back the microphone to Peter.

Great. Next page 24, then agenda, summary, outlook and quickly then to page 27. a quarter organic growth still although slim but where we're able to do good cost control and good sales focus deliver a higher margin and we actually see in the quarter which i started with it's basically underlying slightly better than maybe the report looks from the first first view on it we see an improved demand in the quarter We see that especially TSS and TMS, then medical and sealing is delivering good organic growth in the quarter and we're also with a good order intake. And also actually within industrial solutions, we also have a good order intake. But they have been impacted, what I said, let's say lower product deliveries in the quarter. We have some odd projects last year, same quarter, which we didn't have this quarter. We have, once again, a good order book. And we see we are not kind of concerned about the full year of 26, but it will be a little bit slow start also in 26, as we see it today within industrial solutions. But overall, once again, the message is that we see an improved demand in more or less all areas and continue to see a modern improvement. We are step by step pushing up the margin and as the Volumes will kick in here during 26. We do expect a continued margin improvement if you look at the full year. If we now get the volumes as we see in the order books at the moment, we have substantial as a lot of other companies and adverse currency impact as we're reporting in the Swedish Kronos. Nothing strange with this, but it's something that we cannot really influence short term. And we also note that we continue to do share buybacks at the level of roughly half a billion a quarter. So this is kind of the overall message for us from Q4 2025. And if you're looking at the outlook in page 26, we guide for kind of a similar demand in the first quarter. of 26 underlying actually we do expect continued good order intake but we continue the deliveries in industrial solutions to be somewhat muted which is then let's say bringing us up to that it doesn't mean that it could be still a few percentage points up but I mean it means that if we still believe let's say the organic growth in Q1 to be low single digit And so that is kind of the message we want to send. And then of course we all know that it is still somewhat turbulent geopolitical situation which could influence this if something happens. But I mean we cannot really prepare for that. But we are of course aware that there is kind of a little bit higher uncertainty than usual in the global arena at the moment. Turning to page 27, agenda Q&A, and then quickly turning to page 28 and opening up for questions.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Chitri Dasinha from JP Morgan. Please go ahead.

Good morning, Peter and Frederick. Thank you for taking my questions. I have two, please. So my first one is just on industrial solutions. I wanted to clarify on the underlying development, given your comments on order intake being positive. So excluding the impact of the project deliveries, would the development in the quarters have been positive or still negative?

It's been a positive. I mean, we have a rather substantial effect from the project deliveries. And just to elaborate a little bit on that is also that we had a few, we have actually good order book, especially for LNG, but also for construction. But I mean, the pipeline there is full. I mean, the shipyards are full and they are kind of being delayed on a few of their projects. And that is impacting us that we cannot really get deliveries as expected. I mean, going into the quarter, we had kind of deliveries, but then the customers wanted this to push us. And so we are not, It's a tricky, tricky communication, of course. We still believe it's good markets, good order intake, good projects, but we see that it's a bit slow from the customers kind of accepting the order. So if we exclude kind of LNG, as it is what we call infrastructure construction, harvest, tunnels and that segment, overall development is, let's say, clearly in the positive territory.

Great, super clear. My second question is on the seeding solutions margin. The margin decline, obviously, versus the Q3. So could you please just explain the moving parts sequentially? Was it primarily the mix? And then perhaps how you're thinking about reaching the 23% target from here?

Thank you. That is primarily as a mix, to be honest, and especially driven that we have a slower sales in this, what we call the automotive aftermarket, which is kind of a high margin business for us. And then we shouldn't neglect also, we have M&A also kicking in. And then usually, almost all the time, when we buy something, it's lower profitability than us. And it takes some time to get that to the right figures. And we, I've said it before, and of course, I understand the proof is in the pudding. But if we continue to deliver on organic growth levels, as we've seen in this quarter, we will be seeing a fairly... fairly let's say quick upturn in the margin here and we are confident going into 26 with the current order book and the growth we see in the order book and the growth in some of the more depressed segments like let's say construction equipment we also have semiconductors which is performing very well I guess that is the main segments actually driving the positives here while we still surprisingly we didn't say on the negative side we are still automation which will be slower than we kind of expected but but i mean since this hydraulic what we call let's say fluid power segment is kind of the biggest in in ceiling solutions and that segment is actually showing substantial positive growth in all geographical areas you say as well and we must not need to neglect also in ceiling solutions that we have a continued very good development in aerospace but also there order intake is if I say substantially higher than the underlying sales so that is we're building an order book and there will be an uptick but then it's difficult to say exactly how much the ambitions are very high on the customer side but also there we need to look at in some carefulness whether actually it will happen but it will be a substantial growth in aerospace it's more a matter of how much very clear thank you so much

The next question comes from Vivek Mita from Citi. Please go ahead.

Thank you very much, everyone. Good morning. Hope you can hear me well. My first question is on the TIS margin, quite solid despite the weaker organic growth. And you've highlighted within that the positive mix effects. Historically, the project deliveries were perhaps a higher margin business. Would you maybe be able to elaborate on what drove the positive mix effect in the quarter? Thank you.

I don't think overall as a product business is higher deliveries. It's more that the cream on the top, if you say to that. So it's adding gross profit on top of everything. But overall, gross profit margin in that business is somewhat lower than the rest. So that is kind of also driving a positive mix in the quarter, you say, a little bit lower product deliveries and higher in other areas. But also in industrial solution, we've been investing quite a lot in the structure, removing factories, creating more efficiency so this is something which has always been happening in industrial solutions and it continues to deliver an overall kind of cost improvement which we now also so I say this improved margin is coming from efficiency improvements as a base and then on top of that comes also some mix which is basically higher sales in non-project related businesses but i mean if you know with the current base if you get project business on top of this then of course we'll also drive the margin but if you have let's say since the sales mix is changing somewhat there is a positive driving in the margin you follow my vivica you follow the uh i i do i do understood thank you um my second question is just uh going by region you've highlighted european organic order growth improved relative to the third quarter um

And we can see that in TIS, for example, in your commentary. It would be great to get some color on maybe the verticals, which you're seeing improving within Europe. Is there anything you'd like to highlight? Thank you.

The biggest impact for us is this kind of construction equipment in ceiling solutions where we see an improvement, which is kind of more construction equipment. It's actually surprisingly slightly better also in agriculture. We don't think that's going to continue really. And also, of course, we need to note also in this overall of diversified industrial segments we believe we've been exposed to some inventory downs throughout the year and that is flattening so we see the underlying demand is actually kicking in without any kind of inventory reductions on top of that so that is also something that we are seeing and that is valid in most industrial segments in europe to be honest where we see we don't see really what we're waiting for is an uptick in uh residential construction which is very much depressed i don't say it's continuing down but it's not really let's say uh moving upwards so but overall once again the biggest if i should pick one segment looking at frederick i think pick one segment i think is this construction equipment fluid power what we see in improvements coming both once again from a better underlying demand but also from uh let's say no more inventory reductions.

Very clear. Thank you very much.

The next question comes from Alex Jones from BOFA. Please go ahead.

Good morning. Thanks for taking my questions. Maybe first, just to follow up on your answer on Europe, do you see any sub-segments where there's actually now restocking momentum? Or as you said, it's sort of just destocking has ended and you're now in line with underlying demand?

We don't really see that at the moment. do kind of expect it so that is also creating some confidence going into 26 we do believe even though we don't really have a proof I mean we're following this VDMA I trust you look at the same and if you're referring VDMA it's been kind of flattish now in inventory for a few months and I mean if the demand is picking up which we do believe then of course they're going to be a double up as they've been a double down but we don't really see that we cannot see that we see that in the order book at the moment but we kind of do expect it to happen throughout 26.

Okay, understood. And then just on capital allocation, there were recently some press reports about a potentially larger deal in Italy. Can you just remind us how your pipeline looks and whether you feel ready for potentially another larger deal? You know, now it's a few years since Minnesota rubber if the right opportunity arose. Thank you.

Yeah, but if you look at this Italian opportunity, which I mean, talk bluntly, I mean, which is Alpha-Gomma. Alpha-Gomma is not of interest for us. That is a different segment. And we are not involved in that, what they call hydraulic hoses. And we are not looking at that, just to be clear. uh so that is kind of not on our agenda so we are still not looking at and it's also i mean some of you ask about contitech it's neither let's say on our target list at all so just to clarify that we are not looking at that kind of deals you're going to see us continuing to work on bolt-ons which is kind of strengthening already strong positions so we are not looking for any kind of new positions at the moment we have plenty of opportunities within our current scope which is kind of where you're going to see us spending both money and spending our efforts to go forward.

Thank you.

The next question comes from Agnieszka Valela from Nordia. Please go ahead.

Thank you and good morning. I have three questions. The first one to I mean, both Peter and Fredrik actually, can you talk about the development in your operating costs in the quarter? If we look at the gross margins, you had a fantastic performance with gross margin improving actually by two and a half percentage points, but then much of that benefit almost disappeared in the OPEX line. So maybe you can discuss what was driving the admin cost expansion and other operating cost expansion.

Fredrik, yeah, please.

Yeah, no, but it's right that we have a good good development on the gross profit. But then also there was, of course, some accruals needed for variable salaries and so forth throughout the end of the quarter here when we saw the performance. And also, I mean, coming in, some of the acquisitions that come in, come in with a little bit higher admin cost as well. So I think that's the two main explanations, Agnieszka.

But what you're pushing here, Agnieszka, is actually creating a solid foundation for us going forward. I mean, this is kind of one of the... how should I say, confidence factors that you see here that we're pushing up. We managed to increase both the contribution margin and the gross profits, which of course now is much easier to cut costs than to increase pricing, to be honest. So that is something which is on our agenda. Perfect.

Thank you. Understood. And then, Peter, maybe a bit on that topic. I mean, you guide for flat-ish sequential demand development in Q1 specifically, and you also look to industrial solutions here. But overall, when you look at 2026 and your priorities as a CEO, would you say that you kind of try to position the company now for more growth or still kind of more stability and cost containment as you look at 2026 in total?

It's of course never one priority, Agnieszka. It's several priorities. But I mean, we have a good platform. You said we're moving the gross profits up. We are getting an improved mix. There is still something to do in the cost. But we have the structure in place. Of course, we are gearing up to absorb more growth. And we do expect... that to kick in 26. I mean, we do expect kind of a better second part of 26 than the first part of 26 on the backing of good ordering, taking good activity with the customers. And we do have solid cost control. We do have, let's say, good activities ongoing to further address this, what you call the fixed cost part of it. So overall, it's a combination of maintaining cost control, getting more efficiency. But most important probably is to continue to get into a growth mode and absorb this kind of higher order book as we move throughout 26.

Understood. Thank you. And then the last one for me on medical specifically. So your medical business grew organically by 6% in 25. can you give us any kind of expectations or flavor on the expected growth in 26 also considering that now you have more capacity in Costa Rica that you could use so could you comment on that and maybe also on any you know puts and outs when it comes to profitability for medical in 26.

I mean, we are, let's say, it's still, I mean, let's say, it's still a smaller part of Trelleborg and it's still, let's say, a little bit volatile. So you say, and we're looking at the rolling 12, we are happy with the 6% if you look at the full year. It still might be a little bumpy. We don't take that as a guidance that we expect it to really go down, but it might be bumpy still in between the different quarters because we are exposed to some bigger deliveries and the customers are somewhat... How should I say? The volatility in the ordering is still there. But overall, we have said, let's say, this 5% plus minus. I mean, that is where we feel this business will continue to grow. And that is where we do expect to grow. We have a better setup. Costa Rica will create benefits, but not really. The biggest benefits of that will not happen in 2026. It's probably beyond 2026. but there is kind of solid foundation for growth both in Asia in North America and Central America. I mean, to be very open and blunt, I mean, we're looking for how to get more also into Europe in this. So that is really the target today. We have a good Asian footprint with Australia, China, primarily looking a little bit to Southeast Asia, whether we need a satellite plant there also to support our customers in that part of the world. America is great. America has a good footprint. So we feel confident that the overall positioning of medical solutions is good, and we do expect that to continue to deliver good growth for several years to come.

Thank you.

The next question comes from Hampus Engelau from Handelsbanken. Please go ahead.

Thank you very much. Two questions for me. Just on seeding solutions, I was a bit curious here. You have 5% organic growth and you've been searching for growth to extrapolate seeding with Minnesota. Are Minnesota now not diluting the business area's margin and much of the kind of hampered leverage during the quarter, is that related to what you highlighted, the negative stage mix within automotive aftermarket business? Or how should I think about that?

I mean, it's still, I mean, the North American business is slightly lower than the European to be overall. But I mean, it's not really deteriorating to the overall America's business. As U.S. is getting a little bit bigger, there is a slight negative mix still even kind of beyond the integration of Minnesota. But now, as we do expect volume to kick in, we do expect the margin there to improve. But I cannot say that Minnesota is kind of in itself is the main explanation or kind of pushing down the margin in any way. It's been integrated and we now start to see the benefits in the order book and it will get better as the volumes kick in.

I don't know whether that example is clarifying or... Yeah, I think it adds some more flavor for my modeling. Thank you. And then on industrial, the product business, do you dare to say when that should kick in? Should we expect a catch-up effect like Q2? Q3, Q4 or are you still like waiting to see when that will materialize?

I shouldn't say there's been a disaster in Q1 but I mean it's not going to kick in. We do expect it to kick in in Q2, Q3, Q4. Once again it's backed by a solid order book and we are not kind of concerned about it. It's more that of course I understand you're looking at individual quarters but for us honestly whether the deliveries is in March or April I mean we don't really care because we are want it as early as possible but the important for us is to get orders and to get that into and we have a solid order book and we are also I should say pushing the margin up so we are confident that it's more a matter of when the delivery actually will take place so we are let's say confident on this one I mean but it will be a kind of a solid second half of the year compared to the first half of the year that is the way we look at it at the moment While then commenting on that, I mean, it's still a relatively small part of industrial solutions, so the overall industrial solutions will continue to perform well, and some of that will benefit from this overall, let's say, improved industrial demand as well.

Thank you.

The next question comes from Timothy Lee from Barclays. Please go ahead.

Hi, thanks for taking my question. My first question is, again, on the order intake. When you say you're building an order book, can you give us a little bit of a comment on what's the book to fill that you're achieving in the fourth quarter, and especially for the infrastructure research segment?

We don't want to give... We have decided not to report the order book, but I mean, it's, let's say... How should I put it? I mean, it's still, let's say... mid single digit let's say above so let's say we talk about this let's say above 100 percent mid single digit growth on the order book compared to the sales and then when you comment on the first quarter outlook when you said about the low stability

Is it something that you have already factored in, you know, in the solution, provided that you just comment the delivery is probably not going to happen in the first quarter?

You mean that I mean for industrial solutions in Q1, is that what your question is?

You mentioned about the first quarter organic growth is probably at a low level, right?

Yes, overall for the group, not specifically for industrial. We're not guiding any kind of organic growth per business area really.

Yeah, yeah, that's right. But then that number is already factoring in the fact that the industry solution is not going to happen.

Yes, yes, correct, correct. I mean, if that's the case, so we give a guidance for the overall Trelleborg and not for the individual. So it still might be, if you may say, still might be negative in industry solutions, but then that's going to be, let's say, covered by continued good growth in other areas.

Yeah, understood, very clear. And I have one more question on share buyback. I think last year we have a share buyback program which is scaled down from the previous buyback level, about $500 billion per quarter under the current program. Do you have any comment at this point in time regarding what to do with this private program when it comes to renewing property in April this year?

I mean the current guidance is to continue in the same way. There's no thoughts on changing it. So the current kind of guidance or the current decision which will also Most likely, maybe the proposal for the AGM is that continuous in the same way.

Very helpful. Thank you.

As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you. Thanks all of us for listening in. Let's say a solid quarter for us. Look actually slightly better than maybe the figures shows. Good order intake and solid cost control and then the solid foundation for 26 as we see it. So keep in touch and speak to you soon. CEO in various or see and meet in various ways. Do take care. See you soon.