SKF (SKF) Q3 2025 earnings summary

Executive summary

• Achieved a return to 2.0% organic sales growth after eight quarters of decline, led by the Industrial segment, while Automotive demand remained weak amid significant FX headwinds.

• Adjusted operating margin improved to 12.3% from 11.9% year-over-year, reflecting strong cost control, commercial execution, and effective pricing.

• Automotive business separation is progressing rapidly, with over 50% of volumes transferred to new legal entities and operational readiness for a mid-2026 listing; major milestones achieved in IT and legal separation, especially in India.

• Cash flow from operating activities declined due to higher separation costs, working capital build-up, and FX effects.

Financial highlights

• Net sales were SEK 22.5 billion, down 5.1% year-over-year, with organic growth of 2.0% and a 6.9% negative currency effect.

• Adjusted operating profit was SEK 2,762 million (2,821 last year); operating profit was SEK 2 billion (2,526 last year), mainly due to increased one-off charges from separation and restructuring.

• Gross margin decreased by 0.5 percentage points to 27.1%, but excluding one-off costs, improved by 0.4%.

• Net profit for the quarter was SEK 1,127 (1,631 last year); basic EPS SEK 2.30 (3.40 last year).

• Net cash flow from operating activities was SEK 1.8 billion, impacted by separation costs and working capital needs.

Outlook and guidance

• Market demand for Q4 expected to remain similar to Q3, with organic sales guidance flat year-over-year.

• Currency impact on Q4 operating profit estimated at -SEK 650 million.

• Full-year tax rate guidance raised to 28%, driven by FX effects; CapEx guidance for the year reduced to SEK 4 billion.