Granges, a Stockholm-based player in the aluminium rolling and recycling industry, has just shared its financial results for the third quarter of 2025. The company is celebrating a remarkable 25 per cent increase in sales volumes compared to the same period last year. With total sales hitting 153.4 thousand tonnes (around 169.1 thousand short tonnes), this achievement highlights the strong market demand and impressive operational growth across its main business areas.
The Swedish company runs six rolled aluminium production plants spread across three continents, boasting a total annual capacity of 800 thousand tonnes (which is about 882 thousand short tonnes). The company serves a diverse array of industries, including automotive, HVAC, electrification and battery components, as well as packaging. Their global presence features facilities in the US located in Huntingdon, Tennessee; Salisbury, North Carolina and Newport, Arkansas, alongside operations in Shanghai, China; Finspång, Sweden and Konin, Poland.
Operating profit
The firm has announced an adjusted operating profit of SEK 398 million (USD 42.3 million) for the third quarter of 2025. This marks a slight dip from SEK 420 million (USD 44.6 million) reported during the same quarter last year. The company’s quarterly profit came in at SEK 253 million (USD 26.9 million), down from SEK 285 million (USD 30.3 million) in Q3 2024. This year-over-year decline is attributed to softer margins and shifting market dynamics.
Snapshot of first 9 months
In the year-to-date, the firm has seen a 24 per cent boost in sales volume, climbing from 375.5 thousand tonnes (41.4 thousand short tonnes) in 2024 to 464.2 thousand tonnes (46,800 short tons). The company's adjusted operating profit came in at SEK 1,242 million (USD 132 million), which is just a tad lower than last year's SEK 1,247 million (USD 132.6 million).
For net profit during this period, they reported SEK 807 million (USD 85.8 million), down from SEK 835 million (USD 88.8 million) in 2024. If we exclude operations in Shandong, the firm noted a total carbon emissions intensity (Scopes 1, 2, and 3) of 7.3 metric tonnes of CO₂ equivalent per metric tonne, a slight decrease from 7.4. Additionally, the share of recycled aluminium sourced dipped a bit to 44.3 per cent from 46.5 per cent year-on-year.
Also read: Steel Dynamics’ earnings rise on record aluminium shipments and recycling gains
CEO Jörgen Rosengren, states, "In the third quarter, Gränges delivered strong growth thanks to market share gains in all regions and all customer segments. These gains more than compensated for softer demand in automotive and a sharp slowdown in HVAC."
He further adds, "In Gränges Asia, sales volume increased by an impressive 88 per cent, driven by new business, mainly related to electric vehicles. The growth was enabled by the successful integration and ramp-up of our new plant in Shandong."
The company’s European business unit saw a solid 17 per cent boost in sales volume, even with the tough market landscape. This growth was fueled by gaining market share in the electric vehicle sector and other vital areas. The company’s overall earnings benefited from increased volumes, strategic price adjustments and enhanced operational efficiency. However, rising costs of aluminium scrap, mainly due to new US import tariffs, did put a dent in profitability.
On this, Jörgen Rosengren further commented, “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. 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.”
Future outlook
Despite a somewhat muted demand outlook for the HVAC and automotive sectors, the organisation is optimistic about gaining market share, which should lead to solid year-on-year sales volume growth. The company believes its operations in Asia will either maintain or surpass the current run rate of around 50 thousand tonnes per quarter, while the rest of the group is expected to see high single-digit volume growth.
To tackle unfavourable currency fluctuations and other external challenges, the firm is focusing on sustained growth, strategic price adjustments, and boosting productivity. Moreover, the company intends to keep its capacity expansion investments modest to enhance operational cash flow and uphold a strong balance sheet.
Overall, the third quarter of 2025 really highlighted how effective the organisation’s navigation plan has been, showcasing the company’s knack for keeping things steady even when the market gets a bit shaky. Additionally, the firm expressed gratitude for the ongoing support from its employees, customers, strategic partners and shareholders, emphasising that their contributions are what drive the company’s impressive results and its long-term goal of leading the industry.
To know forecasts of the global aluminium extrusion industry till 2032, read the report on “The World of Aluminium Extrusions – Industry Forecast to 2032”
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