Sandvik (SAND) Q1 2025 earnings summary

Executive summary

• Mining business showed strong momentum, offsetting weakness in cutting tools and infrastructure, while manufacturing software grew at mid-single digits.

• Order intake increased by 2% year-over-year to SEK 32,763 million, with organic growth also at 2%; revenue rose 1% to SEK 29,301 million, organic 1%.

• Adjusted EBITA/EBITDA margin improved to 19.7% from 18.2% year-over-year; adjusted profit reached SEK 3.8 billion, up from SEK 3.3 billion.

• Nine acquisitions were announced, including several in CAM/metrology software and OSA Demolition Equipment, strengthening key segments.

• Several innovations launched, notably electric rotary drill rigs and a mobile electric cone crusher.

Financial highlights

• Adjusted EBITA/EBITDA grew 9% to SEK 5,768 million; margin at 19.7% (up 1.5 ppts year-over-year).

• Free operating cash flow was SEK 3.8 billion, with cash conversion at 70% for the quarter and 93% on a 12-month rolling basis.

• Adjusted EPS, diluted, improved to SEK 3.01 (up from 2.61); ROCE increased to 15.4% (from 14.0%).

• Net financial debt/EBITDA at 1.1, down from 1.2 at year-end.

• Book-to-bill ratio at 112% for the quarter.

Outlook and guidance

• Capex for 2025 estimated at SEK 5.0 billion; interest net expected at SEK -0.8 billion; normalized tax rate 23–25%.

• Currency effects expected to impact Q2 EBITA by SEK -600 million versus prior year.

• Management expects limited margin impact from current tariffs, with main risk being broader global economic effects.

• Restructuring programs and contingency planning continue to support leverage and flexibility.