SKF (SKF) Q4 2024 earnings summary

Executive summary

• Delivered solid margins in 2024 despite challenging and volatile markets, with negative organic growth for the sixth consecutive quarter and net sales of SEK 98.7 billion.

• Strategic focus on price/mix, portfolio management, cost reduction, and regionalization supported margin resilience and value chain strength.

• Ongoing preparations for the separation of industrial and automotive businesses, with more details to be shared at Capital Markets Day in November 2025.

Financial highlights

• Full-year net sales reached SEK 98,722 million, with negative organic growth of 5.4%.

• Q4 2024 net sales SEK 24,725 million, with a 3.1% negative organic growth and adjusted operating margin of 11.1%.

• Q4 cash flow was SEK 3,283 million; full-year net cash flow from operations SEK 10,792 million.

• Proposed dividend increase to SEK 7.75 per share.

• Q4 basic EPS SEK 3.31; full year SEK 14.22.

Outlook and guidance

• No longer providing full-year quantitative guidance; moving to qualitative quarterly guidance.

• Q1 2025 organic sales expected to weaken year-over-year, but FX impact expected to be SEK 200 million positive.

• FY 2025 tax level (excluding divestments) expected around 26%; capex guidance SEK 4.5 billion.

• Expect continued volatility and weak general demand in early 2025.