Sandvik AB

Latest Results (29.08.2026):

Sandvik AB — Q2 2026: The company reported record revenues and profits in the second quarter of 2026 with total order intake up 17% to SEK 37,799 million and revenues up 24% to SEK 36,752 million. Adjusted EBITA rose 48% to SEK 8,306 million (adjusted EBITA margin 22.6%), profit for the period was SEK 5,236 million and diluted EPS SEK 4.17; free operating cash flow was SEK 3,590 million.

Headline results

Order intake: SEK 37,799m (+17%); Revenues: SEK 36,752m (+24%); Adjusted EBITA: SEK 8,306m (+48%) with margin 22.6% (vs 19.0%); Profit for period: SEK 5,236m (+63%); Diluted EPS: SEK 4.17; Adjusted diluted EPS: SEK 4.59.

Profitability drivers

Margin improvement driven by higher volumes, price realization and cost savings, plus temporary timing effects from tungsten price development (noted mainly in the powder business). Currency effects were slightly dilutive (approx. SEK -173m, ~50 bps) and acquisitions were neutral to margin in the quarter.

Cash flow & balance sheet

Free operating cash flow fell to SEK 3,590m (-29%) largely due to higher net working capital from strong revenue growth. Financial net debt declined year‑on‑year to SEK 30.2bn; financial net debt/EBITDA was 1.0. A SEK 7.5bn dividend payout increased sequential leverage.

Business area highlights

Machining: exceptional quarter — order intake +30%, revenues +36%, adjusted EBITA SEK 4,209m and margin 28.7% (temporary powder timing effects noted). Mining: strong demand — order intake +12% (organic +11%), revenues +20% (organic +18%), adjusted EBITA margin ~20.5%. Rock Processing: order intake +8%, revenues +7%, adjusted EBITA margin 14.6%; Intelligent Manufacturing: order intake +15%, revenues +17%, adjusted EBITA margin 22.5% with strong subscription growth.

Acquisitions & strategic progress

Sandvik completed several deals in H1 2026, notably acquiring Italy‑based Diemme® Filtration (entering filtration/dewatering for mining) and K&Y Diamond, and inaugurated an innovation hub in India. Product innovation included AutoMine® Aura and new battery‑electric drill rigs.

Items affecting comparability

Q2 2026 IAC totaled SEK -582m (vs -643m prior year), mainly impairment of assets held for sale and restructuring costs (notably in Machining) plus M&A-related costs; these are excluded from the adjusted EBITA and EPS figures above.

Guidance & financial targets

No market outlook provided; reiterated long‑term targets include adjusted EBITA 20–22% through the cycle, financial net debt/EBITDA <1.5 (excl. transformational M&A), and a dividend payout ratio ~50% of EPS adjusted for IAC. 2026 capex estimated SEK 4.0–4.5bn; normalized tax rate guidance 23–25% and interest net ~SEK -0.6bn. Management noted estimated Q3 impacts from currency and tungsten price timing of about SEK +0.2bn each (relative to prior year).