Slides
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Interim report fourth quarter 2025
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0.9 Adjusted EBITA margin Financial net debt/EBITDA Revenue growth at fixed exchange rates 12% 19.6% Summary Q4 Strong ending to the year with double-digit order intake and revenue growth – Strong demand in mining and infrastructure improving. Mixed demand in cutting tools – strong in aerospace and defense, while automotive remains weak. Strong demand also in both software solutions and powder solutions – Total order intake grew by 4% year on year. Organic order intake growth of 15% – Total revenue increased by 1%, and increased organically by 12% Stable margins on significant currency headwinds – Adjusted EBITA amounted to SEK 6,373 M (6,288), corresponding to a margin of 19.6% (19.6), adjusted EBITA margin R12 at 19.3% (19.2) – Savings from restructuring programs had a positive bridge effect of SEK 131 M – Adjusted profit for the period amounted to SEK 4.2 Bn (4.1) – Free operating cash flow of SEK 6.7 Bn (6.5) corresponding to a cash conversion of 110% 2
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Key strategic highlights in the quarter Multiple innovations in Intelligent Manufacturing - V24 launch – Metrolog Copilot: AI-based assistant offering instant guidance for all users of its software suite – New Machining Module brings powerful process optimization capabilities Strong momentum for digital solutions in Mining – Two large automation orders in the quarter – Strong growth in software – Double-digit order growth for Digital Mining Technologies Blueprint Jaw Crusher chamber platform – Automated features that improve proactive maintenance and part verification – Up to 42% productivity gains and 15% longer service life – Innovation Prize 2025 3
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YoY market development Mining 51% General Engineering 19% Automotive 5% Infrastructure 9% Aerospace 4% Percent of revenue 2025 Other includes mainly energy, die and mold, electronics, medical, pump and valve, rail and defense. % of revenue 2025 Interim report for the fourth quarter 2025 Europe North America Asia Australia Africa and Middle East South America Order intake Y/Y Q4 25 25% 26% 18% 12% 12% 7% 13% 9% 14% 5% 43% 13% Other 12% 4
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Order intake and revenues Order intake Reported (MSEK) Revenues Reported (MSEK) 10 20 30 25 0 20 40 60 80 100 120 14035 0 5 15 SEK Bn Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Q4Q4 Q1 2023 Q2 Q3Q3 Order intake, reported Revenues, reported Order intake R12 Revenues R12 32,717 Book-to-bill 32,461 101% Interim report for the fourth 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 Q2 SEK Bn Q4 Q1 2024 Q2 Q3Q3 Q1 2025 Q2 Q3 Q4Q4 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 Q1 2024 SEK Bn Q3 Q4 Q1 2025 Q2Q2 Q4Q1 2021 Q2 Q3 Q3 Organic % Structure % Revenues R12, fixed rate Interim report for the fourth quarter 2025 6
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Adjusted EBITA development – Adj. EBITA SEK 6,373 M (6,288) – Solid leverage on higher volumes, good price execution and savings off-set by negative impact from currency – Currency impact of SEK -1,172 million, dilution of 130 basis points – R12 adj. EBITA margin 19.3% (19.2) Adj. EBITA margin: 19.6% 7 Interim report for the fourth quarter 2025 7 6 7 8 0% 2% 4% 14% 0 16% 1 18% 2 20% 3 22% 4 24% 5 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 SEK Bn Q3 Q4 Q1 2025 Q2 Q3 Q4Q2Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 +1.4% Adj. EBITA Adj. EBITA % Adj. EBITA % R12
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Mining Order intake – Positive momentum with strong demand for Sandvik’s underground and surface solutions – Double-digit organic growth across all equipment divisions as well as Parts and Services and Digital Mining Technologies – Total order intake increased by 5%. At fixed exchange rates, order intake grew by 17%, of which organic 17%. Excluding major orders of SEK 0.9 billion (0.0) organic order intake increased by 12% Adjusted EBITA – Adjusted EBITA amounted to SEK 3,784 million (3,721), corresponding to a margin of 21.5% (21.5). Good leverage on higher volumes was offset by negative impact from currency. Organic operating leverage was 32% – Currency had a negative impact of SEK 713 million year on year, corresponding to a margin dilution of 120 basis points 52% share of revenues 2025 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 Q4 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 Q4 Adj. EBITA Adj. EBITA % Adj. EBITA % R12 Interim report for the fourth quarter 2025 8
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Rock Processing Order intake and revenues Adjusted EBITA development 0% 50% 100% 150% 0 2 4 1 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 Q4 Order intake Revenues Book-to-bill 0% 5% 10% 15% 20% 0 0.5 0.1 0.2 0.3 0.4 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 Q4 Adj. EBITA Adj. EBITA % Adj. EBITA % R12 Order intake – Order intake in mining declined year on year on tough mining comparables, while underlying demand remained robust – Solid demand in infrastructure driven by US demolition and recycling as well as improvement in aggregates. Positive signs noted in Europe – Total order intake declined by 9%. At fixed exchange rates, order intake increased by 2%, of which organic was 0% – Excluding major orders of SEK 129 million (188), organic order intake growth of 2% Adjusted EBITA – Adjusted EBITA amounted to SEK 394 million (409) corresponding to a margin of 14.5% (14.6). Strong leverage and savings was off-set by negative impact from currency. Organic operating leverage was 41% – Currency had a negative impact of SEK 96 million year on year, corresponding to a margin dilution of 170 basis points share of revenues 2025 9% Interim report for the fourth quarter 2025 9
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Machining and Intelligent Manufacturing Order intake – Mixed demand for cutting tools between regions and segments. Strong demand in aerospace and defense. Demand in general engineering improved, driven by Asia, while automotive remained weak across regions – Orders in cutting tools increased by high single digits, partly due to low comparables, and with positive contribution from price and tariff surcharges – Double-digit growth in intelligent manufacturing and powder solutions – Total order intake increased by 5%. At fixed exchange rates, order intake increased by 15% of which organic 15% – Daily order intake for cutting tools was stable in the first two weeks of January compared to the fourth quarter, taking normal seasonality into account Adjusted EBITA – Adjusted EBITA amounted to SEK 2,398 million (2,340), corresponding to a margin of 19.7% (19.4). Good price execution, savings and structure partly off- set by negative impact from currency. Organic operating leverage was 28% – Savings from the restructuring programs had a positive bridge effect of SEK 103 million. Acquisitions had an accretive effect on the margin of 20 basis points. – Currency had a negative impact of SEK 330 million year on year, corresponding to a margin dilution of 80 basis points 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 Q4 Order intake Revenues Book-to-bill 0% 10% 20% 30% 0 2 1 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 Q4 Adj. EBITA Adj. EBITA % Adj. EBITA % R12 share of revenues 202539% Interim report for the fourth 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 Dec’24 Order intake Revenues Dec’25 32,717 32,461 Adjusted EBITA 6,373 Adjusted EBITA margin 19.6% 19.6% Net financial items -319 Tax rate excluding IAC 24.4% NWC 29.9% 28.7% Free operating cash flow 6,714 ROCE 13.4% 15.2% ROCE excl. amortization of surplus values 16.5% Growth OI Organic 15% Structure 0% Rev 12% 0% Organic + structure Currency -12% -11% Total 4% 1% 1 1 Interim report for the fourth quarter 2025 24.0% 12 14.8% 15% 12% 31,562 32,151 6,288 -364 6,463 Adjusted EPS, diluted 3.25 3.38 1
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Bridge analysis Interim report for the fourth quarter 2025 13 Q4 Q4 MSEK 2024 2025 Revenues 32,151 3,944 -3,651 17 32,461 Adjusted EBITA 6,288 1,234 -1,172 23 6,373 Adjusted EBITA margin 19.6% 31% 133.9% 19.6% Accretion/dilution 1.3% -1.3% 0.1% Organic Currency Structure
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Net financials MSEK Interest net Dec’24 Dec’25 -151 Pension -21 Bank charges -30 Other financial income and cost -50 Leases IFRS16 -62 Fx and other asset classes -4 Total -319 Total yield cost, R3 3.5% Interim report for the fourth quarter 2025 14 -309 -26 -26 61 -72 9 -364 Total yield cost, R12 3.6% 4.9% 5.0%
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Tax rate MSEK Reported Dec’24 Dec’25 20.1% 24.5% Excluding IAC 24.0% 24.4% Normalized 24.0% 24.4% Interim report for the fourth 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% 30% 35% 40% Q4 Q1 2022* Q2 Q3 Q4 Q1 2023 Q2 Q3 SEK Bn Q1 2024 Q2 Q3 Q4 Q1 2025 Q4 Q3 Q4Q1 2021* Q2 Q3 Q2 NWC % of rev., R3M % of rev., R12 15% 0% 25% 20% 30% 35% 40% Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 Q1 2024 Q1 2021 Q3 Q4 Q1 2025 Q2Q2 Q4Q2 Q3 Q4 Q3 Mining Machining and Intelligent Manufacturing Rock Processing Interim report for the fourth 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 Q4 Free operating cash flow Cash conversion, R12 NWC 450 FOCF 6,714 MSEK Dec’24 Dec’25 EBITDA 7,770 Non-cash and other items** -482 Capex -1,024 * Best estimates excluding Alleima Interim report for the fourth quarter 2025 EBITDA adj for non-cash and other items 7,289 **Includes rental equipment, lease payments and proceeds from asset sales 17 7,736 -1,084 6,651 -1,366 1,178 6,463
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Net debt – Financial net debt SEK 27 billion – Net debt SEK 34 billion Interim report for the fourth quarter 2025 Financial net debt/R12 EBITDA: 0.9 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 Q4Q3 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 Q4 Guidance Q4 Currency YoY effect (MSEK) -1,172 -1,000 Outcome FY25 Guidance FY25 Capex (BSEK) 3.8 4.5 Interest net (BSEK) -0.8 -0.8 Normalized tax rate (%) 24.2% 23-25% Interim report for the fourth quarter 2025 19
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Guidance Q1 and FY 2026 Currency effect Given currency rates on January 23, 2026 the effect on operating profit from transaction and translation would be SEK -1.4 Bn for Q1 2026 CAPEX (Cash) Estimated to SEK 4.0-4.5 Bn for 2026 Interest net Underlying interest net is estimated to approximately SEK -0.6 Bn for 2026 Tax rate The normalized tax rate is estimated to 23% - 25% for 2026 Interim report for the fourth quarter 2025 20
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Conclusion 21 Strong financial performance for the fourth quarter and 2025 – Fourth quarter with double-digit organic growth in orders and revenues, improved margin and strong cash conversion – Full year organic order intake and revenues increased by 11% and 5%, respectively – Operating profit margin full year improved to 19.3% despite tariffs and significant currency headwinds Progress in key strategic areas – Good innovation pace and welcomed new companies to the Group – Progress in digital, strong growth in Intelligent Manufacturing and Digital Mining Technologies – Continued successful traction in surface mining – Strong growth in important regions in Machining such as India, and local premium China Ending a successful strategy period – Good financial performance, and strategic progress despite significant macro- and geopolitical challenges – Strengthened our offering, gained traction in important growth areas and introduced leading solutions – A stronger Sandvik, Advancing to 2030
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Q&A 22
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Backup slides 23
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Adjusted EBITA bridge, per BA MSEK Q4 2024 Organic Currency Structure Q4 2025 Mining Revenues 17,306 2,462 -2,184 3 17,588 Adjusted EBITA 3,721 779 -714 -2 3,784 Adjusted EBITA margin 21.5% 32% 21.5% Rock Processing Revenues 2,803 191 -313 34 2,715 Adjusted EBITA 409 77 -96 4 394 Adjusted EBITA margin 14.6% 41% 14.5% Machining & Intelligent Manufacturing Revenues 12,041 1,292 -1,154 -19 12,159 Adjusted EBITA 2,340 367 -330 22 2,398 Adjusted EBITA margin 19.4% 28% 19.7% Comments and numbers refer to continuing operations unless otherwise stated. Interim report for the fourth quarter 2025 24
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Loan maturity profile 0.000 2.000 4.000 6.000 8.000 2026 2027 2028 2029 2030 2031 2032 2033 Average interest rate: ~2.8% SEK M Interim report for the fourth quarter 2025 25 (excluding swap costs)
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Loan and duration profile MSEK Amount Duration Bonds MTN 18,931 3.2 years Bank Loans 8,734 5.5 years Commercial papers 0 0.0 years Bonds MTN 3,780 0.5 years Bank Loans 28 0.5 years Total 31,474 3.5 years Long term: 88% Short term: 12% Committed Credit facilities SEK 16,502 million Interim report for the fourth quarter 2025 26
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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.