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Alfa Laval Updates Financial Targets

Lund, Sweden, October 27, 2025 – Alfa Laval AB (publ) announced significant revisions to its financial goals, aiming to reflect the company's performance over the past few years more accurately. This strategic update emphasizes their focus on growth and profitability moving forward.

New Financial Targets

The Board of Directors of Alfa Laval has unveiled new financial targets that include:

• - An average annual sales growth rate of 7% over the business cycle, up from the previous 5%.
• - Aiming for an average annual operating margin (adjusted EBITA) of 17%, increased from the former target of 15%.
• - A return on capital employed set to maintain a minimum of 20%. This figure remains unchanged but signifies the company's commitment to sustaining strong capital efficiency.

These adjustments align with the company's ongoing efforts to optimize its operations and enhance its market position in various industries.
The updated expectations come in anticipation of Alfa Laval's earnings report for the third quarter of 2025, which is scheduled for release on October 28, 2025, at 7:30 AM CET.

Looking Ahead: Capital Markets Day 2025

To further discuss these new financial targets and their strategic priorities, Alfa Laval will host a Capital Markets Day on November 24, 2025. This presentation aims to offer stakeholders deeper insights into the company's path towards achieving these ambitious goals and the measures they will adopt to ensure sustained growth.

Alfa Laval's Mission

Founded 140 years ago, Alfa Laval is a global leader in providing top-quality products in heat transfer, separation, and fluid handling. The company operates in over 100 countries and employs more than 22,300 people, generating annual sales of approximately SEK 66.9 billion (around €5.8 billion) in 2024.
In a world where resource optimization is crucial, Alfa Laval is committed to innovating solutions that not only cater to industrial needs but also contribute positively to sustainability targets. The company aims to support billions of people by focusing on energy, food, and clean water solutions while working toward decarbonizing the marine fleet essential to global trade.

Through continual investment in technology and process optimization, Alfa Laval seeks to nurture partnerships with its customers, facilitating responsible growth and progress.

In conclusion, these updated financial targets reflect Alfa Laval's determination to adapt to the dynamic market landscape while prioritizing sustainable and profitable growth. With a solid strategy in place and a clear focus on their objectives, Alfa Laval is set to enhance its impact and maintain its position as a leader in the industry.

For more information, you can connect with:

• - Johan Lundin, Head of Investor Relations

Mobile: +46 730 46 30 90
Email: [email protected]

• - Sara Helweg-Larsen, Head of Communication

Mobile: +46 730 35 80 98
Email: [email protected]

This information is governed by the EU Market Abuse Regulation and was disclosed at around 5:30 PM CET on October 27, 2025. Visit www.alfalaval.com for more about the company's offerings and commitment to sustainable solutions.