Gränges reports increase in sales volume in Q3

Gränges, an aluminum rolling and recycling company with headquarters in Stockholm, has reported its financial results for the third quarter of 2025, which include a 25 percent increase in year-over-year sales volumes at 153,400 metric tons, or roughly 169,100 short tons.

The company’s adjusted operating profit was 398 million Swedish kronor ($42.3 million), down from 420 million Swedish kronor ($44.6 million) in the third quarter of 2024. Its profit for the quarter totaled 253 million Swedish kronor ($26.9 million), down from 285 million Swedish kronor ($30.3 million) in the comparable period in 2024.

Gränges operates six rolled aluminum production facilities on three continents with a combined annual production capacity of 800,000 metric tons (roughly 882,000 short tons) of rolled aluminum for use in automotive, HVAC, electrification and battery components, packaging and more. In addition to U.S. sites in Huntingdon, Tennessee; Salisbury, North Carolina; and Newport, Arkansas, Gränges has operations in Shanghai; Finspång, Sweden; and Konin, Poland.

Excluding its newly acquired Shandong, China, production facility, the company’s total carbon emissions intensity (Scopes 1, 2 and 3) totaled 7.4 metric tons of  CO2 equivalent per metric tons of aluminum, down from 7.8 metric tons in Q3 of 2024, and the share of sourced recycled aluminum was 43.4 percent, less than the 47.4 percent it reported the previous year.

“In the third quarter, Gränges delivered strong growth thanks to market share gains in all regions and all customer segments,” CEO Jörgen Rosengren says. “These gains more than compensated for softer demand in automotive and a sharp slowdown in HVAC.”

He notes that Gränges Americas’ sales volume was in line with last year as significant market share gains offset softer demand and destocking in HVAC.

“In Gränges Asia, sales volume increased by an impressive 88 percent, driven by new business, mainly related to electric vehicles," Rosengren says. "The growth was enabled by the successful integration and ramp-up of our new plant in Shandong."

The company’s European business unit managed to grow sales volume by 17 percent in a weak market, which Rosengren attributed to market share gains related to electric vehicles and other segments.

“The group’s earnings benefited from volume growth, price increases and improved productivity,” Rosengren says. “However, higher costs for aluminum scrap—mainly due to new U.S. import tariffs—had a negative impact.”

He also cites currency headwinds related to “translation effects,” which led to a decrease in operating profit.

“Operating cash flow in the quarter remained strong despite the increased aluminum price, supported by good control of net working capital and modest capital expenditure, which helped reduce net debt,” he says. “We see the good cash flow as further proof that we’re entering a phase of stronger cash generation following the completion of our multiyear capacity expansion program.”

Rosengren says Gränges advanced its sustainability goals, noting a reduction in its carbon footprint that was achieved with innovation, strategic partnerships, lower-carbon primary aluminum and operational improvements.

Continued strong volume growth expected

Looking toward the fourth quarter, Rosengren says it is the most difficult quarter to predict.

“Despite a weak demand forecast for HVAC and automotive, we expect continued market share gains to generate strong year-on-year sales volume growth,” he adds.

“Gränges Asia is expected to continue at or above the current run-rate of approximately [50,000 metric tons] per quarter. For the rest of the group, we expect high single-digit volume growth. Our ambition is to offset unfavorable currency effects and other negative external factors with continued growth, price increases and productivity improvements. Capacity expansion capex will remain low, which will strengthen operational cash flow and our balance sheet.”