Trelleborg AB (publ)

Thank you and welcome to all of you for listening in to this presentation of the first three months of 2026 for Trelleborg. As usual, I, Peter Nilsson, will start and then I will also supplemented by Fredrik Nilsson, our CFO and also on the call here is also Kristoffer Sjögren, our head of IR. And as usual, you're going to use the slide deck, which has been on our webpage for some time, and use that to guide us through the call. And then we move to page one on that one, and quickly moving to page number two, which is the agenda slide, as usual, starting with some highlights, general highlights for the group, and then also comment individually on our three business areas. Then Fredrik will guide us through the financials, and I will then be joining you again for a summary and some comments on the outlook for the running quarter, and then finishing off with a Q&A at the end of the call. Turning to page three, good start of the year, solid start in multiple aspects. Sales ended up at the slight north of 8.6 billion Swedish, a decrease in Swedish krona by 3%, but behind that is a fairly solid organic sales growth of 4%, M&A is also adding another 2% and then as most companies or every company reporting in Swedish Kronos we have a fairly strong headwind from the currency bringing down the sales in Swedish Kronos by 9%. EBITDA is slightly shy of 1.6 which is slightly down compared to a year ago but fully then explained by also this Currency effects ending up at the margin 80.4, which is slightly higher than last year. And also the highest to date, highest margin to date for us for a first quarter. I wanted to comment on current resolution, fairly solid, bringing down it by 132 compared to the currency rates a year ago. Earnings per share is then up by 5%. Are we benefiting from a better financial net? which is then and also from buybacks of shares, of course. We have, as usual, some items affecting comparability relating to ongoing restructuring programs slightly lower than a year ago and ending up at minus 42. Strong cash flow for a first quarter. Good cash generation and good management working capital and also benefiting from slightly lower capex in line with guidance. And we also, which I already commented on, we continued to do share buybacks and exactly ended up at exactly 500 million in the quarter, which is a little bit odd, but nevertheless, it's perfectly 500 million. We also know to continue to do Bolton acquisitions and we acquired Nexus Elastomer Molds, which is then being added on to Seed Solutions, a company actually a little bit Different acquisition compared to what we did before. This is more kind of a technical acquisition for us, which is benefiting us in the manufacturing processes and adding tooling and automation expertise very much in the core of what we do. Turning to page four, as I'm commenting on the sales growth, solid organic growth in Europe. Also, solid organic growth in America and Asia and the rest of the world and then slightly negative. But all in all, as already commonly turning up to a solid organic growth of 4%, which is quite an improvement compared to a year ago and also improvement compared to last quarter. Page five, agenda again. Business areas, turning quickly to page number six. and starting with industrial solutions, a slight organic growth, I mean organic sales ended up slightly positive, M&A adding another 3%, but of course also here in the reporting is the Swedish Kronos, we also have a headwind here coming from the negative current translation rate, which is then bringing down the actual figures lower than a year ago. And also, if you look on this one, we already commented on that, which is kind of in line with what we have commented before. We continue to have slightly lower product delivery, as I said, but also with that comment, there's also a good order book related to this, and we are not concerned for the full year impact from this. We also note that, I mean, as most segments are improving, we don't see really any improvement yet. on the construction industry. So that is still very much down compared to if you call it the normal level or the way it was a few years ago. Very good performance in aerospace, which is benefiting us. And all in all, we are slightly down on the margin here due to sales mix. And we do expect that to get back to more on par year on year following going into next quarter. We're going into the running quarter, we should say. Page seven. Solid organic sales growth, medical solutions, organic sales is up by 5%, a strong quarter. Solid sales growth, both in Europe and North America, while Asia was a bit more sluggish for us in this quarter. Also linked a little bit to different kind of startup and different... Yeah, variety of inventory buildup among our customers. Life science segment, although small in totality, but we continue to deliver strong sales growth. And if you look at EBITDA, we keep the margin, but I mean, the absolute EBITDA is down a little bit also here, impacted heavily by currency translation effects. Turning then to page eight, On Trelleborg Ceiling Solutions, same heading here. So for our medical solutions, solid organic sales growth. Organic sales up by 6% and another 2% added by M&A. Sales is actually quite good all across the regions in the industrial segments. And then most of our subsegments also in this industrial space is developing nice in the quarter. Automotive sales. segment declining a little bit for us and that is we continue to have a little bit challenge in the aftermarket sales it's our sales I mean so that is where we are waiting a little bit for a bounce back in that aerospace segments continue to have very robust global growth benefiting overall for the business area margin is then also up on the basis of this fairly solid organic growth, and we are up by 1.6 percentage points compared to a year ago. And that is on the back of these higher volumes, but also operational improvements kicking in. And then we should say, especially on the absolute EBITDA figure, of course, we're impacted also by the, as on all of the business, impacted by the negative effects, translation effects. Acquisition of Nexus, I'd already commented on that, which is a kind of a technical acquisition adding to more operational improvements and actual sales improvements. Turning to page nine, commenting a little bit on sustainability. We're actually flattish year on year. We are getting to levels where... where it's getting more challenging to improve and it's actually not that much in absolute figures anymore. We are of course working further and we do expect continued improvements but there is not a lot to do anymore in this and the same applies if you turn to the next page. Page 10 is also that we're running on a very high level on renewable and fossil free electricity. although up by one percentage point year on year, but the final percentage here is more challenging to improve further. But once again, of course, we're working with it, and we do expect a slight improvement also going forward in this aspect. Turning to page 11, agenda again, and financials, and then turning to page 12 and handing over to Fredrik.

Thank you, Peter. Let's now move to page 12, starting looking at sales development. Reported net sales declined by 3% in the quarter from 8,866,000,000 to 8,606,000,000. As Peter mentioned, there was a significant negative translation effect in the quarter of 9%. We have good organic sales growth of four and then structure added two in the quarter. Moving on to page 13, looking at the sales growth trend. In the first quarter, we had a good 6% at constant FX. So a really good and strong sales growth trend in the quarter. Moving on, page 14, showing the quarterly sales in the rolling 12 months for continuing operations. As I said, 8.6%. billion in sales. And if we're looking at the rolling 12 months basis, it was 34.1 billion in sales. Page 15, looking at the EBITDA, excluding itis affected comparability, down 2% to 1,586,000. In the quarter, there was also a significant negative translation effect of 132 million in the quarter. And at fixed FX, EBITDA improved by 6%. And then looking at the EBITDA margin, up from 18.2 to 18.4, which is actually the highest margin for first quarter ever. And the margin improvement was due to the organic sales growth and continued operational improvements. Moving on, page 16, looking at EBITDA and EBITDA margin on the rolling 12. Here you can see that the rolling 12, it was 6,256 and a margin of 18.4. And you can also see in the chart here that it was EBITDA has been flat during the last 12 months, but we have had a material negative FX impact during this period. Moving on. To page 17, looking into some more details in the income statement. Looking at items affecting comparability in the quarter, minus 42 million, which was related to restructuring. Then, as also Peter mentioned, looking into the financial net, there was some good improvement from minus 144 to minus 102, and that was due to lower interest costs. And then on the tax rate, 25% in the quarter, which was in line with a communicated guidance for the full year as well. Moving on, page 18, earnings per share. A good improvement of 5% in the quarter from 4.28 to 4.50 when we're looking at excluding items affecting comparability. And the main reason here for the improvement was, of course, the lower financial net. the ongoing share buyback program, which was then partly offset by some negative translation effects. And then if we look for the group, including ITS effect and comparability, we have an improvement of 7% in the quarter. Turning to the next page, looking at the cash flow, good cash flow in the quarter, up 14%. And if you're looking at the chart on the left side of the slide, you will see there was a good improvement in working capital. And as always, we have a negative working capital in the first quarter due to normal seasonality. And then also looking at the capex, good improvement of 100 million in the quarter between 26 and 25. Going to page 20, cash conversion. increased to 95% and we have a good high cash conversion ratio in the quarter. Moving on to page 21. Gearing leverage development. Net depth at the end of the quarter amounted to 7.8 billion SEC. Share buyback of 500 million in the quarter as Peter mentioned. We have a depth equity ratio of 21. And net debt in relation to EBITDA ended at 1.1. In other words, our balance sheet continued to remain very strong. Moving on, page 22, returning capital employed. You can see it's ended at 12.3. We have had a flat capital employed compared to prior year. But the good thing is that the rocket trend continued from Q3 2025 and continued to Gradually improve upwards upwards And then finally moving over to page 23 looking at the financial guidance Which is unchanged compared to what we communicated in January, but just to repeat capex Estimated for the full year to be 1 billion 450 million restructuring cost of 375 amortization internables 650 and the underlying tax rate of 25%. And by that, I would like to hand back the microphone to you, Peter.

Thank you. I'm turning then to page 24, agenda slide again, and moving to the next section of the presentation, summary and outlook, turning to page 25. Good start of the year. That is the way we look at it. We have an improved demand, seeing across multiple segments, while recognizing that we have a turbulent world and some big things happening in a lot of areas, which will impact the economies. But honestly, we don't see it really in our businesses. We have a better order intake. We have a positive book to build in the quarter. And we therefore also get back to the guidance on the next page. But then we see actually an improvement here also quarter on quarter. On top of that, margin improvement, I mean, it's not some big steps, but we continue to improve the margin and we continue to push it towards our long-term objectives. We also note we have, let's say, a quite heavy adverse currency impact in the quarter. I cannot really remember when we had similar headwind from currency before. I mean, 9% is big figures and 130% million Swedish also on the EBITDA, but nevertheless managing it in a good way. And I think it also shows when you look at the margin in combination with the currency impact that we don't really have any kind of transactional, a lot of meaningful transactional exposure. So it's a pure translational exposure that we are exposed to. And we also know that we continue to do share buybacks. We bought, as I said before, we actually hit exactly 500 million in the quarter and we're going to continue the same pace and here hopefully here also hopefully very likely here in the next few hours we will have our annual meeting and then we'll get the mandate to continue with these buybacks and turning down to page 26 to comment a little bit on the running quarter I already see that it is we believe with on the backing of the good Development in the first quarter. We believe that we're going to have actually improvement here quarter and quarter and you also want to Comment that is also we really in the quarter. We don't see any pre buying coming from these extra Extra costs are going to hit us in in multiple areas So we don't see that impacting us in March and honestly we don't see it in the order book either happening really in Q2 yet and But let's see what happens. But once again, on the backing of a good development and improved demand in most industrial segments, continued good demand in aerospace, also automotive, although a mixed picture, but we don't really see any downturn there either. It's a bit bumpy in the medical area. Some of the customers are ordering in big, big bulks. But also here, we have had a solid order intake and we also look positive going into the running quarter. Of course, all of this is comment on, we already said, there is a challenging geopolitical situation in several parts of the world, and who knows what impact that will bring us if it's escalating in different areas. Could be positive, could be negative, but nevertheless, we recognize that this is a higher uncertainty than usual. So then turning to next page, page 27, and quickly turning to page 28 as well, and opening up for questions. So please go ahead.

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.

Yeah, hi, Peter, Frederick, and Christopher. Thank you for taking my questions. I have two, please. My first question is just on the price volume development that you saw in the quarter, especially in ceiling solutions, which clearly saw a very strong increase in the margin. Thank you.

Frederick, you want to go?

Yeah, we normally don't. split that out the price volume but as always I mean there is a price component but there was a solid volume development in the quarter I think that is as much as I can say yeah and it was a higher better volume growth in the quarter than we've seen for some time and that is the main benefit of the margin with that said of course we are adjusting pricing we are let's say

adjusting for increased costs going forward. But we cannot see that we've seen that in the figures yet.

Very helpful. Thank you. And then you've already touched on this, but just drilling a bit down into the Q2 demand guide. Which end markets in particular are you incrementally more positive on or where you're seeing more positive demand? And then also, obviously, what's driving the confidence behind this guidance given the uncertainty? Thank you.

I said already most of the segments doing good we have what we call in the ceiling we have hydraulics which is big going into construction equipment and mining and also partly actually first signs of some positives also in the in the ag sector so that is benefiting but also we see semiconductors developing well we see aerospace developing well and we see also automotive actually improving from a fairly soft start of the year we have seen improvements here during So I'd say it's a broad-based improvement and we have to kind of struggle to identify areas where it's actually getting worse. With that said, we still did expect, I mean, not everything is bright blue. I mean, we did, let's say, we are waiting still for an uptick in the construction industry and that is where we are a little bit concerned is with bumpy in the oil and gas, but we also see there LNG and oil and gas. I mean, produce is continuing. So, I mean, honestly, it's kind of a very broad-based improvement, and we struggle to see areas where it's not improving or at least moving flat.

Great. Thank you so much.

The next question comes from Op Otani from Goldman Sachs. Please go ahead.

Hi, good afternoon, Peter, Frederick, and Christopher. Maybe two questions for me, just on the Middle East and then visibility on LNG, maybe an update there. But can you just talk to sort of any revenue impacts and sort of costs, impacts you saw from the Middle East crisis? And then on energy, could you just update us on visibility of sort of project delivery improving in sort of Q2 and H2 as well?

I mean, the Middle East is limited as a business impact. We have some product sales in the Middle East, but it's not really... it stopped that to be honest it's continuing we have some projects ongoing they're continuing and we have some repair projects kicking in as well now for following this let's say what has been happening there so so far we don't really have an impact on the actual sales we do expect the energy pricing going up and we do expect that to kick in on the raw material but that is something as usual in trailer board we're going to adjust for that and we are not kind of overly concerned it's extra job and it is something which is maybe not let's say value adding long term but I mean that is something we manage and something we do so the impact from the Middle East so far is mainly that we do expect going forward some raw material pricing and some freight and all of that going up but that is kind of basic business and something we are adjusting for on the project business I mean we have a solid order book and overall both in kind of tunnels and marine fendering and also some oil and gas in general so this project business has a solid order book but it's been it's a little bit up and down depending on the when products are being delivered and being installed so that is kind of normal and we have a good visibility on it we have guided from last quarter this quarter is going to be a little bit softer now we do expect it to improve somewhat in terms of deliveries for the rest of the year so we are not kind of concerned in the visibility on that part of the business is very good.

Thank you very much.

The next question comes from Alex Jones from Bank of America. Please go ahead.

Great, thanks. Good afternoon, too, if I can as well, please. First, just to follow up on your comments on not seeing any pre-buying. Just expand a little bit on how you reached that conclusion and ensure that customers aren't precautionarily stocking up across different end markets ahead of potential price increases or supply chain impacts. For example, did you see growth improving linearly across the quarter or was it very concentrated in March and the start of April? And then secondly, just on raw materials following up on the previous questions, Are you able to give any color on sort of the magnitude of price increases that you're talking about with customers so far and whether that will already have a positive impact on the organic sales growth line in Q2? Thank you.

First in the pre-buying, I mean, generally, we are not kind of getting orders one day and shipment next day. I mean, we are getting that a little bit faster. longer ordering times and longer shipment times so that means that we have not really seen it happening of course it could be some of the orders going forward there could be some pre-buying but we don't see kind of any bigger bigger magnitudes and we don't see any customers doing rush orders and stuff so they are continuing as usual but we have plenty of orders and it could be some of it but but we don't i mean see any kind of change in pattern or change in anything in a way March was, let's say, a bigger month than the other ones, but it was also more, let's say, working days. And it's normal that you have a soft start in January and then it picks up in February and March. So, of course, it was a good ending of the quarter, but that was also kind of as expected. But in short, it could be coming some pre-buying now as the price increases is kicking in. But honestly, we have not seen it really in the order books or in the in our kind of discussions or talks with our customers. Second question on magnitude of price increases, it varies a lot across what kind of raw materials you're talking. You have these very basic raw materials for us in the rubber, carbon black, or SPR, and of course freight is also something. So the products which is exposed to this area, then we probably talk kind of probably double-digit let's say, price increases. But for the majority of the raw materials, it's kind of difficult. The vast majority, we are very little exposed to this kind of, if I may say, basic, let's say, rubber polymer materials. We are more in specialty materials and our pricing or the costing for our suppliers is more linked to capacity utilization than actually underlying price increases. But with that said and done, I mean, I don't really... On a comment, Alex, we are in the middle of that at the moment and we are working on it. There will be price increases. Do not expect the price increases to kick in that much during Q2. So it's probably going to be more going into the second part of the year. But exactly how much and we honestly, I mean, we don't have the full map yet. We are working on it and we are implementing in some areas. But I mean, also, it's not happening overnight. So that is going to be step by step kicking in during Q2 and then probably more visible going into the second part of the year. That's what I can say, Alex, only to be trying to be fully transparent.

Thank you.

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

Thank you. I have a question on the acquisition impact. It is fading away a bit now, 2% in the quarter, and according to my calculations, unless you release any new kind of acquisitions information, it will come down to 1%. So can you just comment, Peter, on the M&A landscape right now, and should we expect any more deals in the near term from you?

It's always challenging. We're working on deals, let's put it like that. We have several discussions going. Exactly. And we are, as I say, firmly believe that we're going to do more deals this year. But, I mean, exactly when they kick in and when they will be done is difficult to comment. But, I mean, I would be disappointed if we're sitting here by the end of the year and we have not done a couple of more deals. But you never know until it's signed and communicated. But the activity level is high. There is plenty of prospects. I think it's actually the increased activity levels. We see private equity guys coming in trying to sell, of course, with quite demanding valuations. I mean, it should be honest to say that we stepped away from a few processes lately where we lost the case against mainly against private equity guys, which is now starting to pay up again. And we are, as usual, careful on that one. But it's very difficult to give a figure on this, Agnieszka, but I mean, we will do more deals and there will be more deals communicated. And you're probably correct, by the way, on this 2 to 1%. That is probably a good estimate.

Okay, perfect. And then I have a question to Fredrik as well. You still keep your CapEx guidance at 1.45 billion for the year, but your running rate right now for CapEx is below 300 million per quarter. Do you foresee any significant capex investments ahead of you?

No, but I mean, it's always a little bit of timing. So I know we started the year a little bit lower, Agnieszka, but we still feel based on what we have in our strategic plans. And there is also a couple of green fields that will be going on for 2026. So we expect that we will reach that level that according to our guidelines.

We have two bigger ones in India kicking in now. I don't know which other ones do we have.

We are finishing off, of course, the one in Morocco. We're finishing off one in the US.

So we expect that we will end the year at the level we have communicated, even if the year has started a little bit on the lower side.

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

Hi, thanks for taking my question. So I have two questions. The first one, again, about the second quarter guidance. Can you also clarify a little bit whether this expectation of better demand in the second quarter, does it also sit on the fact that last year's second quarter was a bit low in terms of organic sales? So we had a lower comparison from last year. So that's the first question.

Yeah, I mean, I don't really, we are only commenting on sequential and we don't really, I don't really, I cannot really develop it any further. I mean, we have a good order intake. We are solid development in all areas and we do expect this improvement from the run rate in this quarter to improve. I mean, we're not really comparing with a year ago. We're comparing quarter and quarter here sequentially. So that is the, I think what I can say on that. I don't know if anybody else want to add anything. Is that okay, Tim?

Yeah, sure. That's okay. So, yeah, the second one is about the industrial solutions. Can you also please quantify a bit of the impact of project delays in terms of deliveries? I think that you're expecting sales to increase in the second half and margin to improve since next quarter. how much of the organic sales growth can we expect incrementally from these deliveries and what kind of margin improvements?

Sorry, I don't really want to give a guidance to, let's say, business area, business areas, but as rightly said, we do expect it to improve going forward. And of course, I mean, then it will be an improvement, but I cannot really give a dimension on that one. And even though we say the of product sales is improving but with that one we look at that for the full reminder of the year but honestly also there i mean some of this project we don't know when it's going to kick in in q2 or q3 or q4 but we do see that it's going to improve i mean we have a few projects which has been a little bit slow we have somebody holding back but we of course we know the order book and we know when the customer is asking for the products but it's still a little bit uncertain exactly what month it will be invoiced but if we look at the full year we do expect it to bounce back a little bit compared to what we have seen in the last two quarters on industrial solutions.

God, that's very helpful. Can I just follow up a little bit? Can you also tell us about your book to build, you know, for the group or for each of us?

I don't really want to give a lesson either. We are not reporting that. And I mean, we are, but this is higher. High, of course. I mean, as we are guiding for a higher organic growth in Q2, it's higher than the sales. So it's higher than the sales growth. But I mean, we don't really want to... We have decided not to release that figure, but you have to expect the comment that it's higher than the sales growth.

All right. Thank you.

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

Thank you very much. Two questions for me. Firstly, if we could drill a bit on the automotive demand during the quarter, you see a sequential improvement, but also interesting to hear on how this part that is impacted by the tariffs is developing and how you see that going forward. And then the second question is related to Asia. If you can remove medical from that, I know, for instance, that Sealing is doing very well in China. Could you maybe talk a little bit about China and Asia X Medical, what you see and how that is trending? Thank you.

On automotive tariffs, I mean, it might be that we have a good development in North America, and I don't know whether that is, but there's also a lot of new models being launched in the U.S. this year, maybe coming also from the tariffs, but more from... model change perspective in the US and that is always with the new model changes there is some pre-buying and some inventory build up. We had a very soft start of the year in automotive but it has been improving step by step. I don't know whether it's a reaction of a very careful start of the year and I mean it's really difficult to find exact drivers for it but China continues in a positive way and America's doing better Europe a little bit softer but overall all three areas is actually improving sequentially to be honest so it is kind of an improvement which is a little bit surprisingly good to be honest but I mean that is kind of we have to trust the facts and that is the way it looks both in terms of sales and order intake and then the second question was about Asia I mean, also we say when we report Asia, is there also rest of the world? So we are some, that is also something we get back to this productivity. We have good productivity in Australia a year ago. We have also some in Southeast Asia. We had the Taiwanese orders. So it's a little bit bad comps in a way, which is pulling it down. So the core kind of industrial sales in Asia is developing quite okay. I mean, we are growing semiconductor sales. We are growing of hydraulics let's say construction equipment related sales um india also doing solid so so i mean it's not really the majority the main explanation on this that i negative one organic growth in asia is actually related to fairly challenging comps related to uh product sales and the majority, I mean, the majority of that, I mean, you said Asian sales in it, but there's also some Australian sales in it and some African projects and stuff. But that is this kind of this also, unfortunately, there is a little bit in between the quarters. So the core sales, if I may, core industrial sales in Asia is still developing in a favorable way.

All right. Thank you. Thank you.

The next question comes from Matt's list from Kepler. Please go ahead.

Yeah, thank you for taking my questions. Three, I think. First, I mean, you talk about the pretty slow start of the year and improving momentum in March. Is it fair to say that you were sort of on average 60 cents for the quarter, well, reached some 10 plus in March?

I don't want to comment on that, sorry. We're commenting on the quarter. It is, let's say, improvement. I should say it's improvement throughout the quarter, but it was a soft start in January and then February and March better. So that is probably the same. But it's also, if you look individually in March, of course, it was also higher invoicing days. Of course, naturally, it was a good month, but it was also by, let's say, by day, business day. Yeah, well, it was okay, but it was not extraordinary.

And number two then, well, could you just remind me, I guess, everyone else knows about this, but in an industrial solution you have these projects and I mean raw material prices have come up a bit. Do you hedge them fully so there's no risk there for your... Generally not.

Generally we do not. There is individual projects where we do it, but we are kind of also pre-buying a little bit there. So it's a balance of pre-buying. Hedging is generally quite expensive, so the way to hedge it is to pre-buy or pre-agree, but we don't do that generally, so it's more a matter if it's a high kind of raw material, which is generally not the case, but there is any case where we have high raw material content, we are looking for ways of securing. I mean, with that said, we don't expect that we will lose any margin on these kind of higher raw materials. So we will sort that out and we'll manage it. So you will not have as much complaining about that in the next few months that high raw material prices is pushing down the margin. This will not happen.

Sounds very sure. And then restructuring, I guess it was a bit lower than last year. Is this the new level or is it sort of quarter by quarter you make these?

It varies depending. I mean, most of it is related to factory closures and that is kind of long going plans. And I mean, that is sometimes we plan them several years ahead and that is more individually hitting. So I think you have to look at this not at the individual quarter, but as a kind of a rolling 12 figure.

I don't know, Fredrik, you want to... No, but I mean the guidance that we have on the 375 maths, that is what you should expect for the full year, and then it can be a little bit bumpy between the quarters, but looking for the full year, it's the 375 that is the level you should have in mind.

Great. And finally, just coming back to Ineska's question there about M&A there, I mean, is it fair to assume that these medium-sized... The acquisitions that you have, well, 25 and 26, like Nexus, is that the size to be expected going forward?

Yeah, I mean, we say generally it's between kind of 10 million and 50 million euros. That is the typical size. And then probably the deal size is similar or slightly higher. So that is kind of typically the cases we're looking at, because if you go bigger, they are generally not that focused. And if we buy something, we want to have really a focused acquisition, which is benefiting us in a specific geography or a specific technology or a specific kind of business. So it's not really that we're looking for these bigger general acquisitions, which contains a lot of different businesses. We are looking to buy very focused businesses, which is kind of a very nice bolt-on to something which is already existing and already well-positioned.

Okay, great. Thanks a lot.

As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Bowen Thacker from Bloomberg Intelligence. Please go ahead.

Hi, thank you for taking my question. This had one on feeling business margin. What should we think about the cadence of the margin of this business going forward given the significant improvement you've seen this quarter? Should this improvement kind of hold? That's my question.

Now, of course, we'll be aiming higher and we are always commenting on ceiling is running with fairly good gross profits, fairly good contribution margin. So if we see volumes continuing or even improving, then we should see actually continued improvement in the margin as well here. And that is kind of what we're looking at and what we have been commenting for quite some time, that when or if volume kicks into ceiling solutions especially, we will see an improved model in that business. And that is something we still believe in.

Thank you.

There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Thank you, and thanks to all of you for listening in, and thanks for your interest in Trelleborg. I mean, we're happy to support you further. Feel free to contact me, contact Fredrik, and especially contact Kristoffer if you have any follow-up questions or any kind of further input. So do take care, meet you soon, and all the best.