Sandvik (SAND) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered double-digit organic growth in order intake (+15%) and revenues (+12%), with all business areas contributing and strong demand in mining, infrastructure, aerospace, defense, and digital solutions; automotive remained weak.

• Full-year 2025 organic order intake and revenues increased by 11% and 5%, respectively, despite significant currency headwinds.

• Adjusted EBITA/EBITDA margin remained strong at 19.6% in Q4 and 19.3% for the year, reflecting margin resilience.

• Free operating cash flow reached SEK 6.7 billion in Q4, with cash conversion at 110%.

• Strategic progress in digital mining, intelligent manufacturing, and innovation, with notable product launches, awards, and eleven acquisitions including QTE Manufacturing Solutions.

Financial highlights

• Q4 order intake: SEK 32,717 million (+4% year-over-year, organic +15%); revenues: SEK 32,461 million (+1%, organic +12%).

• Adjusted EBITA/EBITDA: SEK 6,373 million (19.6% margin), stable year-over-year.

• Adjusted profit for the period: SEK 4.2 billion; adjusted EPS, diluted: SEK 3.38.

• Net financial debt/EBITDA improved to 0.9; net working capital as % of revenue decreased to 28.7%.

• Return on capital employed improved to 15.2% (from 13.4%).

Outlook and guidance

• Currency effects expected to negatively impact Q1 2026 EBITA by SEK -1.4 billion.

• CapEx for 2026 estimated at SEK 4.0–4.5 billion; interest net for 2026 estimated at approximately SEK -0.6 billion.

• Normalized tax rate guided at 23–25%; Q1 is typically a seasonally lower invoicing quarter.