Fourth Quarter 2025
· Revenue for Period: SEK 26.4 million (SEK 35.8 million), primarily due to the ongoing slowdown in commercial vehicle sales. Recurring revenue accounted for 81.4% (80.4%) of the revenue

· Operating Result: SEK 5.8 million (SEK 9.5 million), yielding 21.9% (26.6%) operating margin, influenced by lower series production volume, offset by cost savings

· Earnings per Share: SEK 0.55 per share (SEK 1.04 per share)

· Cashflow from Operations: SEK 1.6 million (SEK 13.4 million), impacted by delayed year-end customer payments

· High-volume programmes for two new commercial vehicle OEMs, with start of production in 2026 and 2027
· New series production programmes for global agricultural OEM, with start of production in 2028
· Successful Mini-System 4000 installation at Qingdao Surefire foundry in China for industrial power production
· First SinterCast-CGI production in India ready for start of production during second quarter, for export market
 
Full Year 2025
· Revenue for Period: SEK 108.0 million (SEK 135.6 million). Recurring revenue accounted for 90.1% (90.7%) of the revenue

· Operating Result: SEK 32.8 million (SEK 43.2 million), yielding 30.4% (31.9%) operating margin

· Earnings per Share: SEK 3.49 per share (SEK 4.85 per share)
· Cashflow from Operations: SEK 35.1 million (SEK 59.6 million),
· Dividend: Proposed ordinary dividend of SEK 3.00 per share (SEK 6.00 per share) and extraordinary dividend of SEK 0.00 per share (SEK 1.00 per share), equivalent to SEK 21.1 million (SEK 49.3 million), with SEK 1.00 paid in May and SEK 2.00 paid in November
· Installed Base: 58 (58) installations, 26 (26) fully automated systems, 24 (24) mini-systems and eight (eight) tracking systems in 13 (13) countries

CEO Message

Near-term challenges remain; long-term outlook improves to 8 million Engine Equivalents

In the face of weak demand and uncertainty surrounding tariffs and emissions legislation, fourth quarter series production finished at 2.6 million Engine Equivalents, representing a 16% reduction compared to the year-ago period (3.1 million Engine Equivalents). The decline was led by North America, where year-on-year commercial vehicle production decreased by 57% and passenger vehicle production decreased by 14%. Together with reductions in domestic off-road production, the US accounted for an annualised year-on-year decline of approximately 525,000 Engine Equivalents. In contrast, European commercial vehicle production increased by more than 150,000 Engine Equivalents in the fourth quarter, corresponding to year-on-year growth of approximately 20%. The increase in Europe shows the onset of market recovery and aligns very well with the industry-wide improvement in commercial vehicle OEM order books and analyst expectations.
 
Revenue for the period amounted to SEK 26.4 million (SEK 35.8 million). Full-year revenue amounted to SEK 108.0 million (SEK 135.6 million), due to the combined effects of a 17% reduction in series production volume and a 7% negative impact from exchange rates. Recurring revenue derived from the Production Fee levied for each Engine Equivalent, consumables and software licence fees accounted for 90.1% (90.7%) of the full-year revenue. Benefitting from proactive cost reduction of SEK 3.8 million implemented during the year, the full-year operating result finished at SEK 32.8 million (SEK 43.2 million), providing an operating margin of 30.4%, in line with the previous year operating margin of 31.9%. Additional cost reduction of approximately SEK 5 million related to headcount is forecast for full-year 2026, following the retirement of the Technical Director on 31 December 2025 and the upcoming retirement of the CEO at the AGM in May, where the replacements for both were employed throughout 2025.
 
For almost ten years, SinterCast has declared that all commercial vehicle manufacturers will adopt CGI. This declaration has become true. While 2025 may have been disappointing for series production, it was a prolific year for new product development. During 2025, SinterCast and its foundry partners secured high-volume CGI programmes with two new commercial vehicles manufacturers that will start production in 2026 and 2027. We also secured two new off-road programmes with a major global agricultural OEM that will start production in 2028 and we are currently working on two high-volume commercial vehicle engine programmes that will start production in 2030. All of these programmes are for new OEM customers, all providing incremental volume. The positive development has increased our series production threshold and we now target to reach the eight million Engine Equivalent milestone during 2031, with growth opportunities beyond. This development aligns with the increasing realisation throughout the industry that battery electric and hydrogen fuel cell vehicles are not well-suited to the sectors that SinterCast works in, specifically, heavy-duty commercial vehicles and pick-up trucks. Illustrating this realisation, during the fourth quarter of 2025, Ford cancelled the F-150 Lightning and Ford Ram decided not to proceed with the launch its electric pick-up.
 
Second Consecutive year with above average installation revenue
Benefitting from a strong finish with SEK 4.6 million in the fourth quarter, full-year installation revenue amounted to SEK 9.9 million, marking the second consecutive year with installation revenue above the historical average of SEK 8.0 million. The fourth quarter revenue was primarily derived from a capacity expansion at an existing foundry customer in advance of new commercial vehicle production scheduled to begin in late-2026 or early-2027, and a Mini-System 4000 installation at the Qingdao Surefire foundry in China for marine applications. The newly installed Mini-System 4000 at the Saroj foundry in India has been supporting pre-production throughout the quarter, in anticipation of the start of production during 2Q26.  This will mark the first CGI production in India and is destined for export to Europe and the US to supply cylinder heads for stationary engines used for auxiliary power supply in global data centres.
 
What was unique about the 2025 installation revenue was that we exceeded the historical average without installing a large series production system. The revenue was realised through the installation of three smaller systems, two capacity and functionality upgrades, rental equipment to support new product development and spare parts. In hindsight, it was a busy year for installation activity. In the near-term, the outlook for 2026 will be determined by the balance between restricted capital expenditure in the industry, influenced by the global economy, and the need to commission new installations and capacity expansions in preparation for the new programmes that are coming on stream. While it is too early to forecast 2026, the longer term outlook is for sustained annual installation revenue in excess of SEK 8 million.
 
Financial Targets: 2025 Progress Review
In September 2023, on the twentieth anniversary of the start of production of our first high-volume series production programme, we announced five financial targets. In keeping with the tradition set last year, we take the opportunity of the year-end report to provide the following update on our progress for each of the five targets:
1. Double-Digit Series Production Growth through 2030: Current market conditions have delayed, but not derailed, our target. We now expect to reach the six million Engine Equivalent milestone in 2029, with the target to reach the eight million Engine Equivalents milestone during 2031. Relative to the pre-Covid baseline of 3.3 million Engine Equivalents in 2019 and 2.1 million Engine Equivalents in 2016, our outlook is for approximately 5% ten-year CAGR and approaching 10% fifteen-year CAGR.
2. Increase Gross Margin beyond 70%: With a gross margin of 70.4% in 2025, we have posted 14 consecutive years above 70%. The combination of strong series production growth together with stable costs will drive the gross margin well beyond 70%.
3. Increase Operating Margin to >40%: The SinterCast business model is highly scalable. With 30.4% operating margin in 2025, strong growth outlook, near-term cost reductions and stable headcount through the five year planning horizon, we are confident to exceed 40%, making SinterCast one of the most profitable companies in the Nordic region.
4. Cumulative CO2 savings of 100 million tonnes by 2028: With more than 95% of our series production accounted for by large commercial vehicles, pick-up trucks and off-road equipment, and approximately 15 million SinterCast-CGI vehicles in service, the improved fuel efficiency of the vehicles with SinterCast-inside has  contributed to the reduction of 80 million tonnes of CO2. We remain on schedule to reach our target of 100 million tonnes of cumulative CO2 abatement by 2028.
5. 25 Consecutive Years of Dividend growth: Following the stoppage of one high volume programme in September 2024, 2025 was always going to be the challenging year. With the compounding effect of the difficult market, it has not been possible to continue the string of increases. We look forward to re-setting the clock and beginning a new string of increases.
 
Complementing the core business with inorganic growth
Building on the strong platform established over the past 25 years and with a clear focus on creating additional shareholder value, SinterCast has initiated a process to explore opportunities beyond its current organic growth outlook. This initiative is focused on areas where SinterCast can leverage its expertise in precision measurement and process control, together with its strong brand recognition and international commercial reach, to deliver meaningful synergies and growth. Supported by a strong balance sheet, robust cash generation and the experience of our Board, a process is underway to identify potential acquisition opportunities that will further strengthen and accelerate our company’s long-term growth.

This report has been reviewed by the company’s Auditors.
  
Stockholm 17 February 2026
 
For further information please contact:
 
Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Office: +46 150 794 40
Mobile: +44 771 002 6342
e-mail: steve.dawson@sintercast.com
website: www.sintercast.com
Corp. Id. 556233-6494
 
This press release contains information SinterCast AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the President & CEO Dr. Steve Dawson, at 08:00 CET on17 February 2026.
 
SinterCast is the world’s leading supplier of process control technology for the reliable high volume production of Compacted Graphite Iron (CGI). Stronger, stiffer and more durable than conventional iron, CGI enables the development of smaller, lighter and more fuel efficient engines in passenger vehicle, commercial vehicle and industrial power applications. The use of SinterCast-CGI currently contributes to the reduction of approximately ten million tonnes of CO2 per year. With 58 installations in 13 countries, SinterCast provides sustainable solutions for manufacturing and transportation to the global foundry and automotive industries. SinterCast is a publicly traded company, quoted on the Small Cap segment of the Nasdaq Stockholm stock exchange (SINT). For more information: www.sintercast.com