Gränges increases sales volume in 2025

Gränges, headquartered in Stockholm, has reported financial results for the fourth quarter and full year in 2025, posting higher sales volumes and profits.

Calling 2025 the company’s “strongest year so far, despite quite challenging external conditions,” Gränges’ CEO Jörgen Rosengren describes hesitant market demand across the company’s operating regions, particularly in the HVAC industry. “However, we once again compensated by flexibility, market share gains and new business, resulting in a solid sales volume growth of 17 percent in the quarter and a record 22 percent for the full year.”

He adds that Gränges Americas experienced a strong quarter. “The sharp decline in HVAC demand was fully offset by market share gains and new business, which, together with lower maintenance activity than in 2024, resulted in a 7 percent sales volume increase,” Rosengren says.

“For the full year, the region delivered solid growth supported by a more diversified mix and the team’s ability to adapt to a challenging environment. In this way, and despite substantial negative currency translation effects, the region was able to deliver its best full-year operating profit so far.”

Gränges Asia’s activity also remained high in the last quarter of 2025. Rosengren says, “Market conditions softened, but sales volume grew by 32 percent through market share gains and new business, both in our traditional automotive business as well as in electrification and other new markets.”

He adds that sales volume for the full year increased by 70 percent in the region, driven by the ramp-up of the company’s expanded capacity and continued share gains across several markets.

“This platform is now fully established and successfully integrated thanks to excellent work by our Gränges Asia team,” Rosengren says. “Going forward, our focus will gradually shift toward optimizing price, mix and cost in a highly competitive market.”

In Gränges Europe, market conditions remained weak through the fourth quarter; however, sales volume grew by 16 percent as the company continued to make market share gains and add new business. “Growth was particularly strong in electrification and specialty packaging,” he adds.

“For the full year, sales volume increased by 9 percent as we strengthened our partnerships and broadened our product and customer portfolio. However, operating profit remained under pressure from reduced aluminum scrap margins and unfavorable currency, and ended up below the earlier record from 2024.” 

Adjusted operating profit for the fourth quarter increased 15 percent to 373 million Swedish kroner ($83.6 million). Earnings in the period were supported by higher sales volume and improvements in price and productivity, while negative currency effects and lower aluminum scrap margins dragged on profitability. 

Full-year operating profit increased to 1,614 million Swedish kroner ($183.1 million).

“The main drivers behind the good development were higher sales volume driven by market share gains, a broader product and customer mix and continued efficiency improvements across regions,” Rosengren says. “2025 was our fifth year in a row with an all-time-high operating profit, reflecting the hard work of our global team and the successful execution of our strategy. 

Operating cash flow in the fourth quarter was negatively affected by an increase in working capital due to higher aluminum prices, though full-year operating cash flow was strong owing to the gradual reduction of capital expenditure, he adds.

For the fourth quarter, the company's total carbon emissions intensity (Scopes 1, 2 and 3) was 6.2 metric tons of CO2e per metric tons of production, down from 7.8 a year earlier, and the share of sourced recycled aluminium was 47.1 percent, up from 45.4 percent in the fourth quarter of 2024. For the full year, those numbers were 6.6 metric tons (down from 7.5 metric tons in 2024) and 45.1 percent (down from 46.2 percent in 2024).

“2025 marked our best-ever sustainability performance, with lower carbon emissions intensity and record-high recycling volumes,” Rosengren says. “Improvements were driven by both updated sourcing conditions and continued operational progress, including increased use of low-carbon primary aluminum. Together, these steps further reduce our climate footprint and support our customers’ decarbonization ambitions.”

He adds that following a number of capacity investments, Gränges’ focus is on putting its 800,000 metric tons  of capacity  to use, “gradually optimizing mix, price and productivity.”

While market demand remains hard to predict, Rosengren says, “With continued focus on market share gains and new business, we expect sales volume to grow at a low-to-mid single-digit rate compared to last year.”

He adds that the rising aluminum price in the beginning of the first quarter is expected to weigh on operating cash flow.