SKF (SKF) Q1 2026 earnings summary

Executive summary

• Achieved strong adjusted operating margin of 13.5% year-over-year despite volatile markets and significant FX headwinds, with organic sales growth of 2.4% driven by industrial segments and offset by weak automotive demand.

• Rightsizing and cost actions delivered savings of approximately MSEK 300, offsetting negative separation synergies and supporting profitability.

• Weak operating cash flow of -SEK 446 million, mainly due to restructuring, separation costs, and working capital build-up.

• Continued execution on strategic priorities, including advancing the Automotive business separation and implementing a new segment reporting structure.

• Net profit for the quarter was MSEK 1,739, with adjusted EPS at SEK 4.25.

Financial highlights

• Net sales for Q1 2026 were SEK 21,873M, down 8.7% year-over-year, mainly due to a -9.9% currency headwind.

• Organic growth was 2.4%, driven by Specialized Industrial Solutions and Bearing Solutions.

• Adjusted operating profit was SEK 2,951M, with an adjusted operating margin of 13.5% (flat year-over-year).

• Adjusted EPS was SEK 4.25; reported EPS SEK 3.6.

• One-off items totaled -SEK 308 million, including Automotive separation and footprint optimization costs.

• Capital gain from Elgin divestment was SEK 415 million.

Outlook and guidance

• Q2 2026 market demand expected to remain at similar levels as Q1; organic sales to be relatively unchanged year-over-year.

• Currency impact on operating profit for Q2 estimated at around MSEK -100 year-over-year.

• Full-year tax guidance (excluding divestments) at 28%; CapEx outlook at SEK 5 billion.

• Items affecting comparability related to Automotive separation and footprint optimization expected at BSEK -2.5 to -3.

• Separation of Automotive business on track for completion in Q4 2026.