Sandvik (SAND) CMD 2025 summary

Strategic transformation and growth ambitions

• Executed significant business transformation since 2017, divesting SEK 30 billion and acquiring SEK 22 billion, reshaping nearly 50% of group turnover and increasing aftermarket share from 31% in 2019 to 44% in 2024, with digital revenues rising from under SEK 1 billion to over SEK 5 billion.

• Shifted to a growth strategy since 2021, achieving 7% average annual revenue growth (3% organic, 4% inorganic) from a 2019 baseline, meeting ambitious financial targets despite market cycles.

• Decentralized operating model empowers 23 divisions, each accountable for P&L, strategy, and capital efficiency, fostering agility and collaboration.

• Strategic objectives streamlined from six to five, integrating sustainability and focusing on growth, digitalization, profitability, efficiency, and innovation.

• Delivered on strategy and financial targets, evolving into a growing industrial technology company with 23 world-leading divisions.

Updated group structure and business areas

• From January 2026, the group will reorganize into four business areas: Mining, Rock Processing, Machining, and Intelligent Manufacturing, splitting Manufacturing and Machining Solutions for greater transparency and focus.

• The new structure aims to sharpen focus on profitable growth and increase financial transparency.

• Each business area has clear growth priorities and ambitious margin targets for 2030.

Financial targets and capital allocation

• Financial targets reconfirmed through 2030: 7% revenue growth (organic and inorganic, ex-currency), EBITDA/EBITA margin corridor of 20%-22%, net debt/EBITDA below 1.5, and a 50% payout ratio.

• Achieved 7% revenue CAGR since 2019, with 46 acquisitions adding SEK 22 billion in revenue and supporting repositioning toward higher-growth areas.

• Margin resilience improved, with margins at or above 20% in 2021-2023 (excluding SMT), and a solid balance sheet with net debt/EBITDA at 1.07 (Q1 2025).

• Capital allocation balanced between organic growth, dividends, M&A, and share buybacks, with a strong acquisition pipeline and focus on value creation.

• Shareholder rewards include a steadily growing dividend since 2018 and the distribution of Alema.