Q2 2026 Sandvik AB Earnings Call Transcript
Key Points
- Sandvik AB (SDVKF) reported record revenues and profits for the second quarter of 2026, with total revenues increasing by 24% and adjusted EBITDA rising to 8.3 billion, reflecting a margin of 22.6%.
- The company achieved a significant 17% growth in total order intake, both overall and organically, indicating strong demand across key regions and segments.
- Sandvik AB (SDVKF) made a strategic acquisition of DM Filtration, entering the filtration and dewatering market segment, which is expected to grow at 15% annually.
- The launch of new technologies, such as the Automine Aura platform with 3D mapping capabilities, enhances productivity and positions Sandvik AB (SDVKF) as a leader in mining automation.
- The company reported strong performance in its aftermarket business, with a 17% year-on-year growth driven by parts, services, and digital mining technologies.
- Free operating cash flow was reported at 3.6 billion, corresponding to a cash conversion of 46%, which is considered on the lower side due to higher invoicing.
- The organic operating leverage in the mining segment was 25%, which is below the normal 30% due to one-off items such as litigation costs and a mine closure in South Africa.
- Currency fluctuations had a negative impact, diluting margins by 50 basis points.
- The light vehicles segment showed weaker performance, with Europe and North America being flattish and China experiencing a decline.
- The machining segment's profitability was affected by temporary effects from tungsten price dynamics, with a net positive impact of 550 million, but underlying price versus inflation was still dilutive.
A warm welcome to Sandvik's presentation of the second quarter results 2026. My name is Luis Chedder, Head of Investor Relations here at Sandvik, and beside me, I have our CEO, Stefan Verding, and CFO, Cecilia Felta.
We will, as usual, start with the presentation. Stefan and Cecilia will take you through the highlights of the quarter. And after that, we go on to the Q&A session.
So without further ado, over to you, Stefan.
Thank you, Luis. And welcome also from my side to the second quarter report presentation.
To summarize the quarter, it was a very strong quarter with record revenues and profits. We see strong momentum across key regions and segments.
As well as also good price realization, which is, of course, very important in the current environment.
Total order intake grew by 17% and organically we grew by 17% as well.
Total
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