Gränges AB marches into Q2’26 of the aluminium industry after robust Q1 results

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Aluminium rolling and recycling company Gränges AB has posted the financial results for its January-March quarter (Q1) 2026, reporting growth with robust gains. Commenting on the steady performance and the aluminium recycling firm’s consistency, CEO Jörgen Rosengren stated, “Gränges delivered a very strong first quarter performance… This is our ninth consecutive quarter with year-on-year volume growth.” 

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Financial highlights Q1 2026

Financial performance of Gränges AB in Q1 2026, compared year-on-year with Q1 2025 are as follows:  

Sales volume stood at 159,800 tonnes, up 5.4 per cent Y-o-Y from 151,600 tonnes.  

Net sales reached SEK 8,237 million (USD 888.57 million), climbing 13.9 per cent Y-o-Y from SEK 7,233 million (USD 780.26 million).

Adjusted operating profit gained SEK 459 million (USD 49.5 million), rising 12.4 per cent Y-o-Y from SEK 409 million (USD 44 million).

Diluted earnings per share (EPS) stood at SEK 2.97 (USD 0.32), inching up 0.6 per cent Y-o-Y from SEK 2.34 (USD 0.25).

Profit for the period was SEK 322 million (USD 34.74 million), which climbed 23.5 per cent Y-o-Y from SEK 261 million (USD 28.16 million).

Regarding the quarterly sales, the CEO noted, “Demand was weak, but still our sales volume grew by 5 per cent thanks to significant market share gains in all regions and markets.” 

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Region-wise breakup

Gränges Americas gave a mixed performance in Q1 2026.

• Total sales volume increased by 3 per cent to 62,300 tonnes. While the volume to automotive and packaging customers gained 12 per cent, other niches slipped by 7 per cent, owing to inclement weather conditions and a planned maintenance stop shifted to this quarter from Q4 2025.
• Net sales rose by 25 per cent Y-o-Y from SEK 3,308 million (USD 356.85 million) in Q1 2025 to SEK 4,120 million (USD 444.45 million). Net sales improved due to the hike in the fabrication price and the aluminium price.
• Adjusted operating profit climbed 16.9 per cent from SEK 323 million (USD 34.84 million) to SEK 378 million (USD 40.78 million).

Gränges Asia witnessed weak market conditions but remained steady in Q1 2026.

• Total sales volume declined by 2 per cent from 48,600 tonnes to 47,700 tonnes, reflecting weak market conditions despite continued market share gains. Sales to automotive customers fell by 4 per cent, while other niches reported a marginal increase of 1 per cent.
• Net sales declined by 6 per cent Y-o-Y from SEK 1,915 million (USD 206.58 million) to SEK 1,793 million (USD 193.42 million), impacted by lower sales volume and a decline in average fabrication price, although partly supported by higher aluminium prices. Foreign exchange movements had a negative impact of SEK 183 million (USD 19.74 million) on net sales.
• Adjusted operating profit dropped from SEK 81 million (USD 8.74 million) to SEK 51 million (USD 5.5 million), as improved productivity only partially offset the weaker pricing environment, with a minor adverse forex effect of SEK 1 million (USD 107,875.70).

Gränges Europe faced a continued weak demand across all market segments in Q1 2026.

• Total sales volume gained 16 per cent Y-o-Y from 46,500 tonnes to 54,000 tonnes. Sales to automotive customers surged by 21 per cent, supported by growth in electric vehicle-related business, while other niches rose by 12 per cent and speciality packaging grew by 5 per cent.
• Net sales increased by 14 per cent Y-o-Y, rising from SEK 2,232 million (USD 240.78 million) to SEK 2,552 million (USD 275.3 million), primarily through higher volumes, although partly offset by a negative foreign exchange impact of SEK 73 million (USD 7.87 million).
• Adjusted operating profit surged from SEK 47 million (USD 5.07 million) to SEK 73 million (USD 7.87 million), backed by improved volumes, higher average fabrication prices and productivity gains, despite a foreign exchange-related headwind of SEK 27 million (USD 2.9 million). 

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Sustainability performance in Q1’26

In terms of emissions and climate impact, Q1 2026 witnessed a 15 per cent Y-o-Y decline in the total carbon emissions intensity, lowered from 7.3 tonnes of CO₂ emitted per tonne to 6.2 tonnes of CO₂ emitted per tonne. A higher recycling share in Gränges Americas and Gränges Asia primarily contributed to it.

On March 31, 2026, the total carbon emissions intensity on a rolling twelve-month basis was reduced by 48 per cent compared to the baseline 2021. On a rolling 12-month basis, overall carbon emissions intensity showed a 48 per cent decrease compared with the 2021 baseline.

Under recycling and circularity, a Y-o-Y rise was noted in the volume of sourced recycled aluminium by 7,000 tonnes as it edged up from 71,000 tonnes in Q1 2025 to a level of 78,000 tonnes in Q1 2026.

This is in line with the increase from 42 per cent to 46 per cent of recycled aluminium of total sourced metal input. Gränges Americas was the key driver of the performance, indicating that reduced reliance on primary ingots in casting has allowed for greater use of recycled aluminium, also reinforced by new recycling collaborations in Gränges Asia.

On a rolling twelve-month basis, the total volume of sourced recycled aluminium rose to 306,000 tonnes as of March 31, 2026, which is about 6.6 times higher than the 2017 baseline.

Middle East impact and Q2 outlook

Referring to the ongoing Middle East conflict, Rosengren observed, “Increased geopolitical tensions, including the situation in the Middle East, are contributing to higher energy and freight prices and increased input costs in general.”

However, supported by effective pricing and productivity measures, the immediate impact on the business throughout Q1 remained contained. Alongside the usual seasonal rise in working capital, operating cash flow was pressured by higher aluminium prices, a trend expected to persist into the second quarter.

With a positive outlook expecting continued growth in Q2, Rosengren mentioned, “Market demand remains weak and difficult to predict. But we saw a strong finish to the first quarter and have good momentum going into the second. Thanks to our continued focus on market share gains, we expect second-quarter sales volume to grow at a mid-to-high single-digit rate compared to last year.”  

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