SKF (SKF) Q4 2025 earnings summary

Executive summary

• Adjusted operating margin improved year-over-year to 12.7%, with Industrial margin rising and Automotive margin relatively flat, despite challenging markets and significant currency headwinds.

• Net sales for FY 2025 were SEK 91.6 billion, with flat organic growth (-0.4%); Industrial grew 2.3% organically, Automotive declined 5.8%.

• Automotive separation program is progressing rapidly, with listing planned for Q4 2026 after accelerated asset transfers and contract manufacturing phase-out.

• Board proposes a maintained dividend of SEK 7.75 per share, to be paid in two tranches.

• New strategic direction and financial targets set for post-separation value creation.

Financial highlights

• Q4 2025 net sales were SEK 22 billion, with flat organic growth and adjusted operating margin of 11.8%.

• Net cash flow from operations for the year was SEK 8.4 billion, down year-over-year due to separation and restructuring costs.

• Gross margin for Q4 was 25.7%, or 28.7% excluding one-off costs.

• Dividend proposal corresponds to 45% of adjusted net profits and maintains a five-year average payout ratio of 59%.

• Q4 adjusted ROCE was 14.3%; net debt reduced to SEK 5.7 billion at year-end.

Outlook and guidance

• Q1 2026 market demand expected to remain at Q4 levels, with organic sales growth to strengthen somewhat year-over-year.

• FX impact on Q1 2026 operating profit estimated at SEK 800 million negative year-over-year.

• Full-year tax rate guided at 28%, CapEx at SEK 5 billion, and one-off items related to separation and optimization at SEK 2.5–3 billion.