Sandvik (SAND) Q1 2026 earnings summary

Executive summary

• Strong start to 2026 with double-digit organic growth and robust demand across all business areas; order intake up 12% (23% organic), revenues up 5% (15% organic), and adjusted EBITA margin at 20%.

• Strategic acquisitions in mining simulation (ThoroughTec), ultra-precision diamond tools (K&Y Diamond), and MLC CAD Systems' CAM business enhanced digital and high-growth segment capabilities.

• Launch of proprietary EverPath toolpath platform and multiple innovative product launches strengthened digital manufacturing and automation offerings.

• Adjusted profit for the period was SEK 4.1B, adjusted EPS (diluted) increased to SEK 3.27, and free operating cash flow was SEK 3.6B with cash conversion at 62%.

• Notable strategic progress and innovation launches supported long-term growth despite currency headwinds and macroeconomic uncertainty.

Financial highlights

• Order intake reached SEK 36.8 billion (all-time high), revenues SEK 30.7 billion, Book-to-Bill at 120%.

• Adjusted EBITA at SEK 6.1 billion, margin improved to 20.0% (up from 19.7%).

• Adjusted EPS (diluted) increased to SEK 3.27 (+8% year-over-year).

• Free operating cash flow SEK 3.6 billion, cash conversion 62%.

• Net working capital as % of revenues: 28.1% (down from 29.8%).

Outlook and guidance

• Currency headwind expected to persist in Q2 2026, reducing EBITA by SEK 0.5 billion.

• FY 2026 CapEx estimated at SEK 4.0–4.5 billion; normalized tax rate guided at 23–25%.

• Focus remains on consistent financial performance, long-term investment, and reaffirmed long-term targets: 7% growth, 20–22% adjusted EBITA margin, 50% dividend payout, net debt/EBITDA <1.5.