Sandvik AB
STO:SAND
Sandvik AB
In the heart of Swedish industrial prowess, Sandvik AB has chiseled itself into an enduring player in the world of engineering and technology, blending old-world craftsmanship with cutting-edge innovation. Born from the storied roots of iron and steel production in the mid-19th century, Sandvik transformed from a small venture into a global titan. What started as a vision by Göran Fredrik Göransson to revolutionize steel manufacturing using the Bessemer process has today evolved into a diverse conglomerate. Sandvik functions through its distinct but interwoven segments: Sandvik Machining Solutions, Sandvik Mining and Rock Solutions, and Sandvik Materials Technology. Each of these divisions operates in symphony, guided by an expertise in material knowledge and an unrelenting drive for technological advancement.
The company crafts its revenue streams predominantly from the manufacture and sale of advanced equipment and tools, offering solutions that enhance efficiency and productivity across dozens of industries. For instance, Sandvik Machining Solutions thrives by providing premium cutting tools and tooling systems essential for precision engineering, enabling manufacturers worldwide to produce everything from automobiles to consumer electronics. Meanwhile, its Mining and Rock Solutions arm delivers sophisticated machinery and services indispensable to mining operations, facilitating the extraction of minerals and resources. Meanwhile, Sandvik Materials Technology carves out its niche by innovating in the field of stainless steels and special alloys — crucial components for industries requiring high-performance materials. By weaving its expertise across these verticals, Sandvik anchors itself as a stalwart in industrial solutions, where the marriage of robustness and innovation generates a dynamic blueprint for sustained growth.
In the heart of Swedish industrial prowess, Sandvik AB has chiseled itself into an enduring player in the world of engineering and technology, blending old-world craftsmanship with cutting-edge innovation. Born from the storied roots of iron and steel production in the mid-19th century, Sandvik transformed from a small venture into a global titan. What started as a vision by Göran Fredrik Göransson to revolutionize steel manufacturing using the Bessemer process has today evolved into a diverse conglomerate. Sandvik functions through its distinct but interwoven segments: Sandvik Machining Solutions, Sandvik Mining and Rock Solutions, and Sandvik Materials Technology. Each of these divisions operates in symphony, guided by an expertise in material knowledge and an unrelenting drive for technological advancement.
The company crafts its revenue streams predominantly from the manufacture and sale of advanced equipment and tools, offering solutions that enhance efficiency and productivity across dozens of industries. For instance, Sandvik Machining Solutions thrives by providing premium cutting tools and tooling systems essential for precision engineering, enabling manufacturers worldwide to produce everything from automobiles to consumer electronics. Meanwhile, its Mining and Rock Solutions arm delivers sophisticated machinery and services indispensable to mining operations, facilitating the extraction of minerals and resources. Meanwhile, Sandvik Materials Technology carves out its niche by innovating in the field of stainless steels and special alloys — crucial components for industries requiring high-performance materials. By weaving its expertise across these verticals, Sandvik anchors itself as a stalwart in industrial solutions, where the marriage of robustness and innovation generates a dynamic blueprint for sustained growth.
Strong Organic Growth: Sandvik delivered double-digit organic growth in both order intake (15%) and revenue (12%) for Q4, with total orders up 4% and total revenues up 1%, overcoming significant currency headwinds.
Margins & Cash Flow: Adjusted EBITA margin improved slightly to 19.6% and free operating cash flow was robust at SEK 6.7 billion, with a cash conversion of 110%.
Mining Strength: Mining remained a standout with 17% organic order growth and 39% equipment growth; demand was broad-based with gold and copper leading.
Currency Headwinds: Adverse currency effects negatively impacted EBITA by SEK 1.2 billion, diluting margins by 130 basis points, a more negative outcome than earlier guidance.
Pricing & Tungsten: Cutting tools saw high single-digit orders, with some pre-buying in China due to rising tungsten prices, but not in other regions. Pricing adjustments will continue as tungsten costs rise.
Guidance & Outlook: Currency headwinds are expected to persist in Q1 2026 with a negative impact of SEK 1.4 billion. CapEx for 2026 is guided at SEK 4–4.5 billion, and interest net is expected to trend lower.
Strategic Progress: Digital Mining Technologies and Intelligent Manufacturing both posted strong double-digit growth, and Sandvik is entering a new strategy cycle after solid delivery on its prior 5-year plan.
