Q1 2026 SKF AB Earnings Call Transcript
Key Points
- SKF AB (SKFRY) reported a strong adjusted operating margin of 13.5% for Q1 2026, despite significant currency headwinds.
- The company achieved solid organic growth of 2.4%, driven by strong performance in Specialized Industrial Solutions and Bearing Solutions.
- Rightsizing activities yielded SEK300 million in savings, exceeding initial expectations and contributing positively to the overall margin.
- The separation of the automotive business is progressing well, with benefits already being realized in terms of operational efficiency and customer focus.
- SKF AB (SKFRY) is successfully executing on strategic priorities, strengthening its position in high-value industrial segments and building a strong platform for future growth.
- Cash flow was weak in Q1 2026, with a negative SEK0.4 billion, driven by safety stock buildup, restructuring charges, and timing effects in accounts payable.
- Net sales decreased by 8.7% in the quarter, primarily due to a 9.9% negative impact from currency headwinds.
- The automotive segment experienced a negative organic decline of 2%, with weak demand in EMEA and China, impacting overall performance.
- The company faced significant headwinds from FX, impacting the adjusted operating margin by 2.1 percentage points.
- Net working capital as a percentage of rolling sales increased to 34.6%, indicating higher cash absorption and potential challenges in managing working capital efficiently.
A warm welcome to this call where we will focus on SKF performance in Q1 2026. And we had a strong start of the year in terms of margin successful and navigating in volatile market conditions. I am Sophie Arnius, heading up Investor Relations. And today, I'm joined by our CEO, Rickard Gustafson; and our CFO, Susanne Larsson.
After the presentation, there was an opportunity to ask questions. And there are ways to do that. (Operator Instructions) So without further ado. It's a great pleasure to hand over to you, Rickard, please.
A warm welcome to all of you for joining us at this quarterly report. During the quarter, we continued to execute on our strategic priorities to strengthen our position in high-value industrial segments and advancing the separation of our automotive business, and in the quarter, we do deliver a strong performance despite volatile market conditions.
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