Slides
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Interim report third quarter 2025
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1.2 Adjusted EBITA margin Financial net debt/EBITDA Revenue growth at fixed exchange rates 5% 19.0% Summary Q3 Strong momentum – Strong demand for mining and software solutions. Cutting tools up high-single-digits, underlying demand in general engineering stable, strong in aerospace and defense, and weak in automotive. Demand in infrastructure mixed – Total order intake grew by 7% year on year. Organic order intake growth of 16% – Total revenue decreased by 4%, and increased organically by 5% Resilient margins on significant currency headwinds – Adjusted EBITA amounted to SEK 5,539 M (5,866), corresponding to a margin of 19.0% (19.4), adjusted EBITA margin R12 at 19.3 % (19.2) – Savings from restructuring programs had a positive bridge effect of SEK 145 M – Adjusted profit for the period amounted to SEK 3.5 Bn (3.7) – Free operating cash flow of SEK 5.6 Bn (6.8) corresponding to a cash conversion of 105% 2
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Key innovations launched in the quarter Mastercam Copilot – AI-infused Copilot built for machinists to simplify CAM programming for all skill levels – Conversational help and command agent: ask questions or give commands in natural language and Copilot guides or executes New jaw plate range – Up to 40% longer wear life – Up to 30% reduction in running costs – Optimized chamber geometry for improved crushing efficiency and throughput AutoMine® surface drilling training simulator – Immersive, realistic training environment for AutoMine® i-series surface drill rigs – Accelerated operator readiness 3
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YoY market development Mining 51% General Engineering 20% Automotive 6% Infrastructure 9% Aerospace 4% Percent of revenue 2024 Other includes mainly energy, die and mold, electronics, medical, pump and valve, rail and defense. % of revenue 2024 Interim report for the third quarter 2025 Europe North America Asia Australia Africa and Middle East South America Order intake Y/Y Q3 25 26% 25% 18% 12% 12% 7% 6% 18% 18% 31% 18% 6% Other 10% 4
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Order intake and revenues Order intake Reported (MSEK) Revenues Reported (MSEK) 5 10 15 20 25 30 35 0 0 20 40 60 80 100 120 140 SEK Bn Q1 2021 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3Q2 Order intake, reported Revenues, reported Order intake R12 Revenues R12 30,769 Book-to-bill 29,218 105% Interim report for the third quarter 2025 5
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Growth in order intake and revenues Order intake Revenue -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% -80 -60 -40 -20 0 80 100 120 140 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 SEK Bn Q3 Q4 Q1 2024 Q2Q2 Q4 Q1 2025 Q2 Q3Q3 Organic % Structure % Order intake R12, fixed rate -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% -60 -40 -80 -20 0 80 100 120 140 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 SEK Bn Q2 Q3 Q4 Q1 2025 Q1 2024 Q3Q1 2021 Q2 Q3 Q2 Organic % Structure % Revenues R12, fixed rate Interim report for the third quarter 2025 6
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Adjusted EBITA development – Adj. EBITA SEK 5,539 M (5,866) – Good leverage on higher volumes and good price execution negatively off-set by currency – Currency impact of SEK -837 million, dilution of 130 basis points – R12 adj. EBITA margin 19.3% (19.2) Adj. EBITA margin: 19.0% 7 Interim report for the third quarter 2025 7 0 1 2 3 4 5 6 7 8 14% 0% 2% 16% 18% 20% 22% 24% 4% SEK Bn Q1 2021 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3Q1 2022 Q2 Q3 Q4Q4Q3Q2 -5.6% Adj. EBITA Adj. EBITA % Adj. EBITA % R12
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Mining Order intake – Continued momentum in mining with robust demand for Sandvik’s solutions – Strong organic order intake growth, driven by equipment growth of 75%. Parts and Services and Digital Mining Technologies grew by double-digits – Total order intake increased by 13%. At fixed exchange rates, order intake grew by 24%, of which organic 24%. Excluding major orders of SEK 1.6 billion (0.5) organic order intake increased by 16% Adjusted EBITA – Adjusted EBITA amounted to SEK 3,059 million (3,269), corresponding to a margin of 20.1% (20.6). Good leverage on higher volumes was negatively off-set by exchange rates. ERP go live (from Q2) had a 30 bps dilution on the margin – Tariffs were fully offset by surcharges – Exchange rates had a negative impact of SEK 530 million year on year, corresponding to a dilution of 150 basis points Shift to growth – Launch of Sandvik MB 672 bolter miner and introduction of Automine® – Surface Drilling Training Simulator – Glencore expanded its use of Sandvik’s Automine® and anti-collision avoidance systems 51% share of revenues 2024 Order intake and revenues 8 Adjusted EBITA development 0% 50% 100% 150% 0 4 8 12 16 20 SEK Bn Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Order intake Revenues Book-to-bill 0% 10% 20% 30% 0 1 2 3 4 SEK Bn Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Adj. EBITA Adj. EBITA % Adj. EBITA % R12 Interim report for the third quarter 2025 8
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Rock Processing Order intake and revenues Adjusted EBITA development 0% 50% 100% 150% 0 1 2 3 4 SEK Bn Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Order intake Revenues Book-to-bill 0% 5% 10% 15% 20% 0 0.1 0.2 0.3 0.4 0.5 SEK Bn Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Adj. EBITA Adj. EBITA % Adj. EBITA % R12 Order intake – Solid growth in mining. Infrastructure demand subdued, but with accelerated dealer activity in the US in the demolition and recycling – Total order intake was flat at 0%. At fixed exchange rates, order intake increased by 9%, of which organic was 9% – Excluding major orders of SEK 189 million (318), organic order intake growth of 14% Adjusted EBITA – Adjusted EBITA amounted to SEK 392 million (417) corresponding to a margin of 15.1% (15.2). Strong leverage and savings were off-set by negative impact from exchange rates – Tariffs fully off-set by surcharges – Exchange rates had a negative impact of SEK 69 million year on year, corresponding to a margin dilution of 130 basis points Shift to growth – Launch of new jaw crusher plate range share of revenues 20249% Interim report for the third quarter 2025 9
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Machining and Intelligent Manufacturing Order intake – Mixed demand picture with strong growth in aerospace and smaller strategic segments. Underlying demand in general engineering was stable – Organic order intake for cutting tools increased by high single digits year on year on low comparables. Strong development was noted in the powder business. Software orders increased by double-digits – Total order intake increased by 1%. At fixed exchange rates, order intake increased by 8% of which organic 8% – Daily order intake in the first two weeks of October was stable compared to the third quarter, taking normal seasonality into account Adjusted EBITA – Adjusted EBITA amounted to SEK 2,184 million (2,314), corresponding to a margin of 19.2% (19.8). Good price execution and savings were negatively off- set by currency. Tariffs were fully off-set by surcharges – Savings from the restructuring programs had a positive bridge effect of SEK 116 million – Exchange rates had a negative impact of SEK 218 million year on year, corresponding to a dilution of 60 basis points Shift to growth – Multiple innovations introduced within Machining and Intelligent Manufacturing Order intake and revenues Adjusted EBITA development 0% 50% 100% 150% 0 4 8 12 16 SEK Bn Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Order intake Revenues Book-to-bill 0% 10% 20% 30% 0 1 2 3 SEK Bn Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Adj. EBITA Adj. EBITA % Adj. EBITA % R12 share of revenues 202440% Interim report for the third quarter 2025 10
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Cecilia Felton CFO 11
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Financial summary 1 R12 revenues and R12 month average NWC / ROCE MSEK Q3 2024 Order intake Revenues Q3 2025 30,769 29,218 Adjusted EBITA 5,539 Adjusted EBITA margin 19.4% 19.0% Net financial items -396 Tax rate excluding IAC 25.0% NWC 30.2% 29.3% Free operating cash flow 5,603 ROCE 13.5% 15.1% ROCE excl. amortization of surplus values 16.5% Growth OI Organic 16% Structure 0% Rev 5% 0% Organic + structure Currency -9% -8% Total 7% -4% 1 1 Interim report for the third quarter 2025 24.1% 12 14.9% 16% 5% 28,796 30,306 5,866 -526 6,762 Adjusted EPS, diluted 2.94 2.81 1
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MSEK Q3 2024 Organic Currency Structure Q3 2025 Revenues 30,306 1,390 -2,496 18 29,218 Adjusted EBITA 5,866 479 -837 31 5,539 Adjusted EBITA margin 19.4% 34% 19.0% Accretion/dilution 0.7% -1.3% 0.1% Bridge analysis Interim report for the third quarter 2025 13
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Net financials MSEK Interest net Q3 2024 Q3 2025 -201 Pension -20 Bank charges -23 Other financial income and cost -14 Leases IFRS16 -70 FX and other asset classes -68 Total -396 Total yield cost, R3 3.5% Interim report for the third quarter 2025 14 -390 -26 -22 -8 -66 -13 -526 Total yield cost, R12 4.0% 4.9% 5.2%
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Tax rate MSEK Reported Q3 2024 Q3 2025 26.4% 25.8% Excluding IAC 24.1% 25.0% Normalized 24.1% 25.0% Interim report for the third quarter 2025 – Normalized tax: In line with guidance for 2025 – 23-25% 15
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Net working capital Net working capital Per BA, % of revenues, R12 * Best estimates excluding Alleima 0 5 10 15 20 25 30 35 40 0% 15% 20% 25% 35% 40% 30% Q1 2021* Q2 Q3 Q4 Q1 2022* Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 SEK Bn Q2 Q3 Q4 Q1 2025 Q1 2024 Q3Q2 NWC % of rev., R12% of rev., R3M 15% 0% 25% 20% 30% 35% 40% Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4Q1 2021 Q2 Q3 Q4 Q1 2025 Q1 2024 Q3Q2 Q3 Q4 Q2 Mining Machining and Intelligent Manufacturing Rock Processing Interim report for the third quarter 2025 16
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Free operating cash flow -20% 0% 20% 40% 60% 80% 100% 120% 140% -1 0 1 2 3 4 5 6 7 SEK Bn Q1 2021* Q2 Q3 Q4 Q1 2022* Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Free operating cash flow Cash conversion, R12 NWC 100 FOCF 5,603 MSEK Q3 2024 Q3 2025 EBITDA 6,984 Non-cash and other items** -664 Capex -817 * Best estimates excluding Alleima Interim report for the third quarter 2025 EBITDA adj for non-cash and other items 6,320 **Includes rental equipment, lease payments and proceeds from asset sales 17 6,856 -669 6,186 -1,179 1,755 6,762
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Net debt – Financial net debt SEK 33 billion – Net debt SEK 41 billion Interim report for the third quarter 2025 Financial net debt/R12 EBITDA: 1.2 18 -10 0 10 20 30 40 50 60 1.8 -20 -0.6 -0.3 0.0 0.3 0.6 0.9 1.2 1.5 SEK Bn RATIO Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3Q2 Financial net debt Net pension liability Leases Financial N.D. / R12 EBITDA
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Outcome versus guidance Outcome Q3 Guidance Q3 Currency YoY effect (MSEK) -837 -800 Outcome Q1-Q3’25 Guidance FY25 Capex (BSEK) 2.8 4.5 Interest net (BSEK) -0.6 -0.8 Normalized tax rate (%) 24.1% 23-25% Interim report for the third quarter 2025 19
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Guidance Q4 and FY 2025 Currency effect Given currency rates at the end of September 2025 the effect on operating profit from transaction and translation would be SEK -1 Bn for Q4 2025 CAPEX (Cash) Estimated to approximately SEK 4.5 Bn for 2025 Interest net Underlying interest net is estimated to approximately SEK -0.8 Bn for 2025 Tax rate The normalized tax rate is estimated to 23% - 25% for 2025 Interim report for the third quarter 2025 20
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Conclusion Order growth momentum and good performance – Strong organic order intake growth of 16% with momentum in key segments – Resilient margin of 19.0% on significant currency headwinds. Tariffs fully mitigated – Strong cash conversion of 105% Leveraging on Sandvik’s solid digital platform – Double-digit growth in Intelligent Manufacturing and Digital Mining Technologies – Good progress with market-leading Automine platform – Multiple innovations launched in the quarter Solid foundation and culture drives strong financial and strategic execution – Strategic initiatives yielding results – Sandvik's decentralized set-up drives swift response to market changes – Proven agility in a complex and fast-changing environment – Continued uncertain geopolitical and macro economic environment 21
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Q&A 22
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Backup slides 23
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Adjusted EBITA bridge, per BA MSEK Q3 2024 Organic Currency Structure Q3 2025 Mining Revenues 15,838 909 -1,511 4 15,240 Adjusted EBITA 3,269 325 -530 -5 3,059 Adjusted EBITA margin 20.6% 20.1% Rock Processing Revenues 2,750 64 -236 22 2,600 Adjusted EBITA 417 41 -69 3 392 Adjusted EBITA margin 15.2% 15.1% Machining & Intelligent Manufacturing Revenues 11,718 418 -748 -9 11,378 Adjusted EBITA 2,314 54 -218 33 2,184 Adjusted EBITA margin 19.8% 19.2% Comments and numbers refer to continuing operations unless otherwise stated. Interim report for the third quarter 2025 24
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Loan and duration profile MSEK Amount Duration Bonds MTN 19,343 3.4 years Bank Loans 8,927 5.8 years Commercial papers 4,042 0.1 years Bonds MTN 3,860 0.7 years Bank Loans 73 0.5 years Total 36,246 3.3 years Long term: 78% Short term: 22% Committed Credit facilities SEK 11,100 million Interim report for the third quarter 2025 25
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Loan maturity profile 0,000 2,000 4,000 6,000 8,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Average interest rate: ~2.7% SEK M Interim report for the third quarter 2025 26 (excluding swap costs)
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Disclaimer statement Some statements herein are forward-looking, and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and the major customer credit losses.