Sandvik (SAND) Q2 2025 earnings summary

Executive summary

• Order intake reached an all-time high at SEK 32.2 billion, with 10% organic growth and strong momentum in mining, powder solutions, and software; general engineering, automotive, and infrastructure remained soft.

• Total revenue decreased 5% to SEK 29.7 billion, but grew 3–4% organically at fixed rates.

• Adjusted EBITA/EBITDA margin was 19.0% (down from 19.6% last year), with strong cash flow of SEK 5.1 billion and cash conversion at 94%.

• Strategic progress included the largest battery electric vehicle order, key acquisitions, and product innovations; restructuring in Machining launched to drive efficiency.

• Focus on digitalization, electrification, and sustainability initiatives continued.

Financial highlights

• Q2 2025 order intake: SEK 32,206M; revenues: SEK 29,700M; book-to-bill ratio: 108%.

• Adjusted EBITA: SEK 5,629M (down from 6,149M); adjusted profit for the period: SEK 3.7Bn (3.9Bn last year); adjusted EPS, diluted: 2.96 (down from 3.10).

• Free operating cash flow: SEK 5.1Bn (up from 4.2Bn); net financial debt at SEK 45Bn; net debt/EBITDA at 1.3.

• Return on capital employed increased to 14.8% (up from 14.1%); net working capital as % of revenue: 29.6%.

• Currency headwinds and tariffs impacted results, but tariffs were fully offset in the quarter.

Outlook and guidance

• High macro and geopolitical uncertainty expected to persist; company will continue mitigating tariff and trade risks.

• Q3 2025 currency effect on operating profit expected at SEK -800M; FY 2025 capex estimated at SEK 4.5Bn.

• No major new site investments planned; focus on ramping up existing production.

• Long-term targets reconfirmed: 7% growth, 20–22% adjusted EBITA margin, <1.5 net debt/EBITDA, 50% dividend payout.

• Underlying interest net for 2025 estimated at SEK -0.8Bn; normalized tax rate guided at 23–25%.