Q1 2025 Sandvik AB Earnings Call Transcript
Key Points
- Sandvik AB (SDVKF) reported a 2% increase in total order intake and a 1% increase in revenue, with organic growth contributing equally to these figures.
- The company achieved an improved adjusted EBITDA margin of 19.7%, up by 1.5 percentage points, driven by successful restructuring programs and cost savings.
- Strong performance in the mining sector, particularly in Australia and South America, with a 26% increase in equipment orders and double-digit growth in parts and services.
- Sandvik AB (SDVKF) launched several innovations, including an electric option for rotary drill rigs and a mobile electric cone crusher, enhancing its product portfolio.
- The company announced nine acquisitions in the quarter, strengthening its position in CAM and demolition and recycling equipment.
- The cutting tools and infrastructure segments were negatively impacted by the uncertain macroeconomic environment, with Europe and North America experiencing declines.
- The automotive segment saw a significant downturn, with low double-digit declines in Europe and North America.
- Despite a positive sentiment in aerospace, North America reported a mid-single-digit decline in order intake.
- The company faces potential risks from global tariffs and trade barriers, which could impact the overall economy and Sandvik AB (SDVKF)'s operations.
- Currency fluctuations had a negative impact on the company's financial performance, with a reported negative currency impact of 1% on orders and revenue.
Hello everyone and welcome toamic's presentation of the first quarter results 2025. My name is Louis Tedder, head of investor relations, and beside me I have SaviO, Stephan Viding and CFO Cecilia, Felton.
We will do the normal procedure, meaning Stefan and Cecilia will start with the presentation and take you through the key highlights of the quarter, and after that we will move on to the questions.
And with this I hand over the word to you, Stefan.
Thank you, Louis, and also from my side, welcome to our first quarter report in 2025.
We start by summarizing the quarter, we see good momentum in the mining business while cutting tools and the infrastructure continue to be impacted by the uncertain macro environment.
Also positive is that manufacturing software continues to grow at mid single digits.
Total order intake increased by 2%, and of that
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