SKF (SKF) Q4 2025 earnings summary

Executive summary

• Adjusted operating margin improved year-over-year to 12.7%, driven by strong cost management and commercial execution, despite significant currency headwinds and flat organic growth.

• Industrial segment achieved organic growth and margin improvement, while Automotive faced sequentially softer markets and negative organic growth.

• Automotive separation is progressing ahead of schedule, with a planned listing in Q4 2026.

• 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

• FY 2025 net sales were SEK 91.6 billion, with Q4 net sales at SEK 22 billion, both reflecting flat organic growth.

• Adjusted operating margin improved to 12.7% for the year and 11.8% in Q4.

• Net cash flow from operations for the year was SEK 8.4 billion, with Q4 at SEK 2.7–2.8 billion, both down year-over-year due to separation costs.

• Gross margin in Q4 at 25.7%, or 28.7% excluding one-off costs.

• One-off costs in Q4 totaled SEK 1 billion, mainly from automotive separation and footprint optimization.

Outlook and guidance

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

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

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