Sandvik (SAND) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered double-digit organic growth in order intake (+15%) and revenues (+12%), with all business areas contributing and strong demand in mining, infrastructure, aerospace, and digital solutions, while automotive remained weak.

• Full-year 2025 organic order intake and revenues increased by 11% and 5%, respectively, despite significant currency headwinds.

• Adjusted EBITA/EBITDA margin was 19.6% in Q4 and 19.3% for the year, with adjusted profit for the period at SEK 4.2 billion.

• Free operating cash flow was SEK 6.7 billion in Q4, with cash conversion at 110%.

• Strategic progress included digital mining, intelligent manufacturing, and eleven acquisitions, supported by a EUR 500 million EIB loan.

Financial highlights

• Q4 order intake grew 4% year-over-year (organic +15%), revenues up 1% (organic +12%), with SEK 32,717 million in orders and SEK 32,461 million in revenues.

• Adjusted EBITA/EBITDA reached SEK 6,373 million (margin 19.6%), and adjusted EPS, diluted, increased to SEK 3.38.

• Net working capital as % of revenue improved to 28.7%.

• Net debt/EBITDA reduced to 0.9x; net debt at SEK 34 billion.

• Return on capital employed improved to 15.2%.

Outlook and guidance

• Currency effects expected to negatively impact Q1 2026 EBITA by SEK -1.4 billion.

• Capex for 2026 guided at SEK 4.0–4.5 billion; interest net expected at approximately SEK -0.6 billion.

• Normalized tax rate guided at 23–25%; Q1 expected to be seasonally lower in invoicing.

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