Q2 2025 Sandvik AB Earnings Call Transcript
Key Points
- Sandvik AB (SDVKF) achieved an all-time high order intake, driven by strong momentum in Mining and Powder Solutions.
- The company reported a solid adjusted EBITA of SEK5.6 billion, with a margin of 19%, despite significant currency headwinds.
- Strong cash flow was recorded at SEK5.1 billion, an improvement from SEK4.2 billion in the same period last year.
- Sandvik AB (SDVKF) continues to make strategic progress, including booking its largest battery electric vehicle order and launching new products like the Automine Surface Fleet.
- The software business, surface mining, and parts and services segments showed strong revenue growth, contributing positively to the company's performance.
- Total revenue decreased by 5% year-on-year, although it grew organically by 3%.
- The profitability margin decreased to 19% from 19.6% last year, impacted by currency headwinds and low leverage in key segments.
- Demand in General Engineering, Automotive, and Infrastructure segments remained soft, affecting overall performance.
- The company faced challenges with ERP go-live issues, impacting delivery and invoicing in the rock tools division.
- Currency fluctuations had a significant negative impact, with a minus 11% effect on order intake and minus 10% on revenues.
A warm welcome to Sandvik's presentation of the second-quarter results 2025. My name is Louise Tjeder, Head of Investor Relations. And of course, beside me, I have our CEO, Stefan Widing; and CFO, Cecilia Felton. We will, as we usually do, start with the presentation, present the quarterly highlights, and after that, we will move on to the Q&A session.
And with this short introduction, I will hand over to you Stefan.
Thank you, Louise. And also from me, welcome to the second-quarter report of 2025.
If we summarize the quarter, of course, we have to start with the order intake, which is at an all-time high level. We see a strong momentum in Mining and also in Powder Solutions. We see a positive development in the Software business, Aerospace, and some of the smaller segments -- I'll come back to that -- while, of course, demand in General Engineering, Automotive, and
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