SKF AB

Latest Results (11.05.2026):

SKF AB — Q4 2025: Revenue fell to MSEK 21,969 (−11.1% y/y) with organic growth 0.0%. Reported operating profit was MSEK 1,563 (including items affecting comparability of MSEK −1,025); adjusted operating profit was MSEK 2,588 (adjusted margin 11.8%). Net profit was MSEK 591 and basic EPS SEK 1.25 (adjusted EPS SEK 3.50). Net cash flow from operating activities was MSEK 2,758 and net debt was MSEK 12,052 at 31 Dec 2025. The Industrial business outperformed while Automotive remained weak; Automotive separation and currency headwinds materially affected results. The Board proposes a dividend of SEK 7.75 per share and expects Q1 2026 demand broadly in line with Q4 with somewhat stronger organic sales y/y.

Key financials (Q4 2025)

Net sales MSEK 21,969 (24,725); organic growth 0.0% (−3.1%). Operating profit MSEK 1,563 (2,331) — includes IAC MSEK −1,025. Adjusted operating profit MSEK 2,588 (2,735); adjusted operating margin 11.8% (11.1%). Net profit MSEK 591 (1,591). Basic EPS SEK 1.25 (3.31); adjusted EPS SEK 3.50 (4.20).

Segment performance

Industrial: net sales MSEK 15,938 (17,508), organic +2.3%, adjusted operating margin 15.6% (14.6%) — price/mix and cost saves supported margin. Automotive: net sales MSEK 6,031 (7,217), organic −5.8%, adjusted operating profit MSEK 104 (186), adjusted margin 1.7% (2.6%) — weaker markets, especially Europe/North America, and large currency drag.

Cash flow & balance sheet

Operating cash flow Q4 MSEK 2,758 (3,283). Net cash flow after investments positive for the year; net debt reduced to MSEK 12,052 (was MSEK 16,472 at 1 Jan 2025). Net working capital 30.4% of 12‑month sales. Net debt/Adjusted EBITDA ~0.8 (Q4).

Items affecting comparability & Automotive separation

Q4 included IAC of approximately MSEK −1,025 (about half related to Automotive separation, half to footprint optimization). Full‑year IAC was significant (operating items affecting comparability ~MSEK −3,918). SKF expects separation-related negative synergies to hit in early 2026, while rightsizing saved ~MSEK 190 in Q4.

Dividend, outlook and headwinds

The Board will propose a dividend of SEK 7.75 per share. For Q1 2026 SKF expects market demand broadly similar to Q4 and expects organic sales to strengthen somewhat y/y. Management flags continued significant currency headwinds (company references currency impacts of several hundred MSEK) and ongoing costs related to the Automotive separation and footprint changes.