This article first appeared on GuruFocus .
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Sales:SEK5.3 billion, up 6% compared to the same period last year.
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Adjusted EBIT:SEK772 million, with a margin of 14.6%.
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Organic Growth:8%, mainly driven by higher volumes.
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Thermoplastic Compounding Growth:12% organic growth.
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Rubber Compounding Sales:SEK3.6 billion, up 5% compared to last year.
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Thermoplastic Compounding Sales:SEK1.3 billion, up 9% compared to last year.
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Engineered Products Sales:SEK386 million, below last year's SEK402 million.
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Net Debt to EBITDA Ratio:1.17%, below last year.
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Cash Flow:Approximately SEK680 million, slightly below EBIT.
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EBIT Margin:14.6%, down 50 basis points compared to last year.
Release Date: July 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Hexpol AB ( HXPLF ) reported strong organic sales growth of 8% in Q2, driven primarily by higher volumes.
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The thermoplastic compounding segment achieved double-digit organic growth of 12%, indicating a clear growth area for the company.
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Despite challenges, Hexpol AB ( HXPLF ) successfully implemented price increases in both Europe and North America to offset rising raw material costs.
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The company maintained a strong financial position with a net debt to EBITDA ratio of 1.17%, lower than the previous year.
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Hexpol AB ( HXPLF ) managed to secure raw materials and implement necessary price increases, demonstrating effective supply chain management amidst market volatility.
Negative Points
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The company faced high levels of uncertainty in the market, particularly in North America, which affected customer demand.
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Volatile raw material prices, exacerbated by the Middle East situation, posed significant challenges during the quarter.
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The engineered products segment experienced a decline in sales, primarily due to lower demand from specific customers in Sweden.
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Negative FX effects impacted the financial results, with a SEK21 million negative effect on EBIT.
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Increased operating expenses, driven by higher IT investments and staffing costs, affected the EBIT margin, which decreased by 50 basis points compared to last year.
Q & A Highlights
Q: Can you elaborate on the sequential price mix improvement and its durability? A: The sequential price mix improvement is primarily due to price increases rather than a durable customer/product mix change. There are some positive mix effects, but it's mainly driven by price adjustments.
Q: Why did Thermoplastics show a significant margin increase compared to Rubber? A: Thermoplastics benefited from price increases to offset raw material costs, positive mix effects, and higher volumes that helped cover more indirect fixed costs, providing leverage as volumes increased.
Q: Is the current OpEx level the new base, or will it increase further? A: The current OpEx level is not expected to increase significantly from here. The rise is mainly due to IT investments and staffing, but we don't anticipate further substantial increases.
Q: Why are automotive volumes flat in Rubber but up in Thermoplastics? A: The increase in Thermoplastics is due to new product launches related to automotive models, which have had a more significant impact on Thermoplastic compounding than on Rubber Compounding.
Q: Can you provide more details on the OpEx growth and its relation to specific segments or geographies? A: The investment in people resources to facilitate growth is spread across the business, focusing on sales and R&D resources. IT investments are currently more concentrated in North America but will expand to other areas over time.
Q: How have raw material price fluctuations impacted pricing, and what is the outlook for future pricing? A: Raw material prices have been volatile, and while the forecast suggests they may decrease, the timing is uncertain. Price increases implemented are in the low-mid single-digit range, and future pricing will depend on raw material price developments.
Q: What is the outlook for volume growth in Q3, and how significant were captive volumes in the past? A: We do not provide forecasts for Q3. Captive volumes have been significant in the past, and while we aim to grow them, it's too early to predict future performance.
Q: What drove the strong growth in Thermoplastics in Europe, and is it sustainable? A: The growth is due to strong performance and customer-specific projects starting to generate volume. The projects themselves are recurring, but future growth depends on adding new projects and replacing older ones.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
