Solid revenue growth, strong earnings and cash flow development

Q3 2023 highlights

Organic order intake growth for the rolling 12-month period was 0%. The backlog remained solid.

Order intake in the quarter increased by 19% to SEK 4,595 million (3,869), with organic growth of 16%.

Revenues increased by 8% to SEK 4,617 million (4,270), with organic growth of 5%.

Adjusted operating profit (EBIT) increased to SEK 350 million (195), with a margin of 7.6% (4.6), mainly driven by an improved product mix, higher revenues and price increases.

Operating profit (EBIT) amounted to SEK 206 million (-26), corresponding to a margin of 4.5% (-0.6), and included metal price effects of SEK -144 million (-131) and items affecting comparability of SEK 0 million (-90).

Adjusted earnings per share, diluted, was SEK 0.99 (0.07). Earnings per share, diluted, was SEK 0.55 (-0.62).

Cash flow from operating activities increased to SEK 949 million (-297).

Free operating cash flow increased to SEK 812 million (-323).

Decision to expand capacity to meet demand in the Chemical and Petrochemical segment through an investment of approximately SEK 250 million in a new cold-finishing facility in Zhenjiang, China. The investment will be made over a three-year period and production will gradually increase from 2025.

CEO’s comment

We report continued solid revenue growth and a strong earnings and cash flow development for the quarter. Adjusted EBIT grew 80% to SEK 350 million and the adjusted EBIT margin was 7.6%, which was a record-high level for a third quarter. Higher revenues, successfully implemented price increases and an improved product mix from the Industrial Heating and Medical segments in the Kanthal division and Oil and Gas segment in the Tube division contributed to the solid growth in earnings. In line with normal seasonal variations, both sales and the EBIT margin were lower than in other quarters of the year due to reduced activity during the summer weeks and scheduled production maintenance.

Our Kanthal division continued to perform well. The adjusted EBIT margin for the quarter of 18.6% was, among other things, the result of a strong product mix, with profitable deliveries of electrical heating solutions to the solar industry and in the Medical segment, which once again set a new revenue record.

Organic order intake growth for the Group was 16%. In the Medical and Transportation segments (mainly aerospace), the backlog continued to grow from high absolute levels. The performance in Industrial Heating was stable, with demand mainly driven by trends related to the green transition, such as manufacture of solar equipment and conversion to more environmentally friendly steel production. In the Oil and Gas segment, demand remained high, and we secured several orders during the quarter. Demand in the more short-cycle business, mainly related to low-refined products in the Industrial segment, remained soft. The market situation for our Strip division remained challenging, mainly related to the Consumer segment.

Demand for application tubing products for the Chemical and Petrochemical segment grew in Asia where we see large potential over the next few years. To meet this demand, we have decided to expand our capacity by investing in a new facility in Zhenjiang in China, adjacent to our existing production site. Our strategy in China can be summarized as a local premium offering customized for critical processes in, for example, the Chemical and Petrochemical segment. This investment is important to ensure our long-term growth in this profitable and growing market.

With our Kanthal division, we are a leading global supplier of electrical heating solutions, and we are continuing to support our customers to electrify their production and reduce their carbon emissions. During the quarter, we received a pilot order for electric process gas heaters for the upstream steel industry, to be used by a steel manufacturer in Asia to improve the existing blast furnace process. This both generates lower carbon emissions and improves the efficiency of the blast furnace process, resulting in a final product with a lower environmental impact compared with conventional technology.

We continue to focus on workplace safety. Several activities were initiated during the quarter to raise awareness of safety, which is always our top priority.

Our solid backlog provides good visibility going forward and we remain confident in of our deliveries in the near future. At the same time, we are aware of the uncertain market situation in some of our customer segments and its potential impact on our operations, and we are continuously taking measures to adapt.

We will host our Capital Markets Day in Stockholm on November 14, and I hope to see many of you there. You are very welcome to attend!

Göran Björkman, President and CEO

Conference call and webcast 13:00 CEST

A webcast and conference call will be hosted on October 24, 2023 at 13:00 pm CEST. More information and a presentation will be available at

Dial-in details for the conference call

Sweden: +46 (0) 8 5051 0031

UK: +44 (0) 207 107 06 13

US: +1 (1) 631 570 56 13

Link to webcast


Sandviken, October 24, 2023

Alleima AB (publ)

Contact details

Emelie Alm, Head of Investor Relations
Phone: +46 (0) 79 060 87 17

Yvonne Edenholm, Press and Media Relations Manager
Phone: +46 (0) 72 145 23 42

About Alleima
Alleima AB, is a global manufacturer of high value-added products in advanced stainless steels and special alloys as well as solutions for industrial heating. Based on long-term customer partnerships and leading materials technology, we develop products for the most demanding applications and industries. Our offering includes products like seamless steel tubes for the energy, chemical and aerospace industries, precision strip steel for white goods compressors, air conditioners and knife applications, based on more than 900 active alloy recipes. It also includes ultra-fine wires for medical and micro-electronic devices, industrial electric heating technology and coated strip steel for fuel cell technology for cars, trucks, and hydrogen production. Our fully integrated value chain, from R&D to end-product, ensures industry-leading technology, quality, sustainability, and circularity. Alleima, with headquarter in Sandviken, Sweden and revenues of SEK 18.4 billion in 2022, has approximately 5,900 employees and customers in approximately 90 countries. Alleima was listed on Nasdaq Stockholm on August 31, 2022 under the ticker ‘ALLEI’. Learn more at

This information is information that Alleima AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11.30 AM CEST on October 24, 2023.