Sandvik (SAND) Q3 2025 earnings summary

Executive summary

• Organic order intake grew 16% year-over-year, driven by strong demand in mining, software solutions, and aerospace, while automotive remained weak and infrastructure mixed.

• Total order intake increased 7% year-over-year, with revenues down 4% but up 5% organically due to significant currency headwinds.

• Adjusted EBITA/EBITDA margin was resilient at 19.0%, with free operating cash flow of SEK 5.6 billion and cash conversion at 105%.

• Strategic launches included AI-based Mastercam Copilot, new jaw plate range, and other innovations supporting differentiation and margin protection.

• Book-to-bill ratio at 105%, marking the third consecutive quarter of positive backlog build.

Financial highlights

• Q3 order intake: SEK 30,769 million (+7% year-over-year); revenues: SEK 29,218 million (-4% year-over-year); organic growth 16% and 5% respectively.

• Adjusted EBITA/EBITDA: SEK 5,539 million (margin 19.0%), down 6% year-over-year due to currency headwinds.

• Adjusted profit for the period: SEK 3.5 billion; adjusted EPS, diluted: 2.81.

• Free operating cash flow: SEK 5.6 billion, cash conversion 105%.

• Return on capital employed increased to 15.1% from 13.5% year-over-year.

Outlook and guidance

• Continued negative currency impact expected in Q4, with SEK -1 billion on EBITA/EBITDA.

• CapEx for 2025 estimated at SEK 4.5 billion; interest net at approximately SEK -0.8 billion.

• Normalized tax rate for 2025 expected at 23–25%.

• No specific revenue guidance, but strong order intake in mining expected to flow into revenues with typical 9–12 month lead time.

• Long-term targets: 7% growth through the cycle, adjusted EBITA margin 20–22%, dividend payout ratio 50% of adjusted EPS, net debt/EBITDA <1.5.