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 positively despite significant currency headwinds.

• Mining, infrastructure, aerospace, and defense segments showed robust demand, while automotive remained weak.

• Strategic progress in digital mining technologies, intelligent manufacturing, and surface mining, with notable product launches, innovation awards, and new company integrations.

• Free operating cash flow was SEK 6.7 billion in Q4, with high cash conversion rates and net debt/EBITDA improved to 0.9.

• The Board proposed a dividend of SEK 6.00 per share, up from SEK 5.75.

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 reached SEK 6,373 million (margin 19.6%), up 1.4% year-over-year.

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

• Free operating cash flow was SEK 6.7 billion, with a cash conversion of 110%.

• Net debt reduced to SEK 27 billion (0.9x 12-month rolling EBITDA); total net debt at SEK 34 billion.

Outlook and guidance

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

• CapEx for 2026 guided at SEK 4–4.5 billion; interest net expected to trend down to SEK 0.6 billion.

• Tax rate guidance unchanged at 23–25%; Q1 typically a seasonally lower invoicing quarter.

• Active M&A pipeline with more bolt-on acquisitions expected in 2026.

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