Sandvik (SAND) Q2 2026 earnings summary

Executive summary

• Achieved record revenues and profits in Q2 2026, with order intake up 17% and revenues up 24% year-over-year, driven by strong demand across all business areas and regions, and robust price realization.

• Adjusted EBITA reached SEK 8.3 billion (up from SEK 5.6 billion), margin of 22.6% (up from 19%).

• Adjusted profit for the period was SEK 5.8 billion (up from SEK 3.7 billion), and adjusted EPS, diluted, was SEK 4.59 (up 55–63%).

• Strategic acquisitions, including Diemme® Filtration and K & Y Diamond, expanded offerings in mining, filtration, and precision tools.

• Major product launches included a new turning grade for Dormer Pramet and the next-generation AutoMine Aura platform with real-time 3D mapping.

Financial highlights

• Order intake: SEK 37,799 million (+17%); revenues: SEK 36,752 million (+24%) year-over-year.

• Adjusted EBITA: SEK 8,306 million (+48%), margin 22.6% (up from 19.0%).

• Adjusted profit for the period: SEK 5,800 million (up from SEK 3,700 million); adjusted EPS, diluted: SEK 4.59 (up 55–63%).

• Free operating cash flow: SEK 3,590 million (down from SEK 5,090 million), with a cash conversion of 46%.

• Return on capital employed: 17.5% (up from 14.8%).

Outlook and guidance

• Q3 2026 adjusted EBITA expected to benefit by SEK 0.2 billion each from currency and tungsten price effects.

• Full-year 2026 CapEx guidance: SEK 4.0–4.5 billion; interest net: SEK -0.6 billion; normalized tax rate: 23–25%.

• Long-term aftermarket growth in mining expected to normalize to high single-digits after recent double-digit growth.

• Long-term targets reaffirmed: 7% growth, 20–22% adjusted EBITA margin, 50% dividend payout, net debt/EBITDA <1.5.