Sandvik (SAND) Q3 2026 earnings summary

Executive summary

• Broad demand and strong execution drove 17% organic order growth and 25% organic revenue growth; adjusted EBITA margin reached 22.5%, above the 20–22% target range.

• Free operating cash flow hit a quarterly record of SEK 7.167bn; profitability benefited from volume, pricing, savings and operational leverage.

• Adjusted profit for the period was SEK 5.8bn; adjusted diluted EPS rose to SEK 4.64 from SEK 2.81.

Financial highlights

• Order intake was SEK 36.948bn versus SEK 30.769bn, up 20% reported and 17% organically; revenue was SEK 37.728bn versus SEK 29.218bn, up 29% reported and 25% organically.

• Adjusted EBITA increased to SEK 8.477bn from SEK 5.539bn; margin was 22.5% versus 19.0%, with 37% organic operating leverage.

• Free operating cash flow was SEK 7.167bn versus SEK 5.603bn; quarterly cash conversion was 87%.

• Reported operating profit rose 53% to SEK 7.927bn; reported profit for the period increased 63% to SEK 5.772bn, with diluted EPS of SEK 4.60 versus SEK 2.82.

• Adjusted diluted EPS was SEK 4.64; excluding amortization of surplus values, adjusted diluted EPS was SEK 4.96.

Outlook and guidance

• Q4 adjusted EBITA currency effect is estimated at +SEK 0.6bn YoY; tungsten-price timing effects are expected to have limited impact based on end-September prices.

• FY26 cash capex guidance is SEK 4.0–4.5bn; Q1–Q3 capex was SEK 2.8bn. Normalized tax-rate guidance is 23–25%, and net interest is estimated at SEK -0.7bn.

• A tariff refund is estimated to reduce Q4 order intake and revenue by SEK 0.4bn, with no impact on absolute adjusted EBITA.

• Long-term 2025–2030 targets: 7% through-cycle growth from organic growth and M&A in fixed currency; 20–22% adjusted EBITA margin; 50% dividend payout of adjusted EPS; financial net debt/EBITDA below 1.5 excluding transformational M&A.