SKF (SKF) Q2 2026 earnings summary

Executive summary

• Adjusted operating margin improved to 13.9% from 13.3% year-over-year, driven by strong Specialized Industrial Solutions (SIS) performance, rightsizing initiatives, and Automotive business separation.

• Net sales reached SEK 23,195 million, with organic growth of 1.4%, mainly from industrial segments, offset by flat Americas OEM and weak EMEA demand.

• Automotive business separation progressing on schedule, now operating as a standalone entity with structural and IT separation completed and listing targeted for Q4.

• Announced a strategic venture in industrial humanoids with Leaderdrive, targeting rapid entry into a high-growth segment, and initiated AI and IT modernization activities.

• Net profit more than doubled to SEK 1,329 million from SEK 583 million year-over-year, with adjusted EPS at SEK 5.0.

Financial highlights

• Net sales flat year-over-year at SEK 23,195 million; adjusted gross profit margin up 1.1% to 32.7%.

• Adjusted operating profit rose to SEK 3,223 million from SEK 3,090 million; margin at 13.9%.

• SEK 1 billion in one-off costs (IAC), mainly for automotive separation and Americas footprint consolidation.

• Operating cash flow at SEK 2.1 billion, slightly lower than last year due to rightsizing and separation costs.

• Net profit more than doubled to SEK 1,329 million; adjusted EPS SEK 5.0.

Outlook and guidance

• Q3 organic sales expected to strengthen year-over-year, with improved demand in certain industries, but geopolitical risks remain.

• Full-year tax rate guidance raised to 29% due to changes in evaluation reserve.

• CapEx guidance reduced to SEK 4 billion for the year, reflecting asset optimization.

• One-off costs for the year expected at SEK 2.5–3 billion, mainly related to Automotive separation and footprint optimization.

• Currency impact on Q3 operating profit expected to be around SEK 100 million.