Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Q3 2025 Earnings Presentation
27 slides from Sandvik Ab's earnings presentation, Oct 20, 2025
Slide 1: Interim report third quarter 2025
Interim report third quarter 2025
Slide 2: Summary Q3
Summary Q3 Strong momentum – Strong demand for mining and software solutions. Cutting tools up high-single-digits, underlying demand in general engineering stable, strong in aerospace and defense, and weak in automotive. Demand in infrastructure mixed – Total order intake grew by 7% year on year. Or
Slide 3: Key innovations launched in the quarter
Key innovations launched in the quarter Mastercam Copilot New jaw plate range AutoMine® surface drilling training simulator – AI-infused Copilot built for machinists – Up to 40% longer wear life – Immersive, realistic training to simplify CAM programming for all environment for AutoMine® i-series –
Slide 4: YoY market development
Interim report for the third quarter 2025 YoY market development Mining General Engineering Infrastructure Automotive Aerospace Other 51% 20% 9% 6% 4% 10% % of revenue 2024 Percent of revenue Order intake 2024 Y/Y Q3 25 Europe 26% 6% North America 25% 18% Asia 18% 18% Africa and Middle East 12% 31%
Slide 5: Order intake and revenues
Interim report for the third quarter 2025 Order intake and revenues SEK Bn 35 140 Order intake Reported (MSEK) 30,769 30 120 25 100 Revenues 20 80 Reported (MSEK) 15 10 60 40 29,218 Book-to-bill 5 20 0 Q1 Q2 2021 Q3 Q4 Q1 Q2 2022 Q3 Q4 Q1 Q2 2023 Q3 Q4 Q1 Q2 2024 Q3 Q4 Q1 Q2 2025 Q3 0 105% Order int
Slide 6: Growth in order intake and revenues
Interim report for the third quarter 2025 Growth in order intake and revenues Order intake Revenue SEK Bn SEK Bn 50% 140 50% 140 40% 120 40% 120 30% 100 30% 100 20% 80 20% 80 10% 10% 0% 0 0% 0 -10% -20 -10% -20 -20% -40 -20% -40 -30% -60 -30% -60 -40% -80 -40% -80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 7: Adjusted EBITA development
Interim report for the third quarter 2025 Adjusted EBITA development SEK Bn 8 24% Adj. EBITA margin: 19.0% 7 -5.6% 22% 6 20% 5 18% 4 16% 3 14% – Adj. EBITA SEK 5,539 M (5,866) 2 4% – Good leverage on higher volumes and good 1 2% price execution negatively off-set by currency 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 8: Mining
Interim report for the third quarter 2025 Order intake and revenues 51% share of Mining revenues 2024 SEK Bn 20 150% 16 100% Order intake 12 – Continued momentum in mining with robust demand for Sandvik’s solutions 8 50% – Strong organic order intake growth, driven by equipment growth of 75%. 4 Part
Slide 9: Rock Processing
Interim report for the third quarter 2025 Order intake and revenues 9% share of Rock Processing revenues 2024 SEK Bn 4 150% 3 100% Order intake 2 – Solid growth in mining. Infrastructure demand subdued, but with 50% accelerated dealer activity in the US in the demolition and recycling 1 – Total orde
Slide 10: Machining and Intelligent Manufacturing
Interim report for the third quarter 2025 Order intake and revenues 40% share of Machining and Intelligent revenues 2024 SEK Bn Manufacturing 16 150% 12 100% Order intake 8 – Mixed demand picture with strong growth in aerospace and smaller strategic segments. Underlying demand in general engineering
Slide 11: Cecilia Felton CFO
Cecilia Felton CFO 11
Slide 12: Financial summary
Interim report for the third quarter 2025 Financial summary MSEK Q3 2024 Q3 2025 Growth OI Rev Order intake 28,796 30,769 Organic 16% 5% Revenues 30,306 29,218 Structure 0% 0% Adjusted EBITA 5,866 5,539 Organic + structure 16% 5% Adjusted EBITA margin 19.4% 19.0% Currency -9% -8% Net financial items
Slide 13: Bridge analysis
Interim report for the third quarter 2025 Bridge analysis Q3 Q3 MSEK 2024 Organic Currency Structure 2025 Revenues 30,306 1,390 -2,496 18 29,218 Adjusted EBITA 5,866 479 -837 31 5,539 Adjusted EBITA margin 19.4% 34% 19.0% Accretion/dilution 0.7% -1.3% 0.1% 13
Slide 14: Net financials
Interim report for the third quarter 2025 Net financials MSEK Q3 2024 Q3 2025 Interest net -390 -201 Pension -26 -20 Bank charges -22 -23 Other financial income and cost -8 -14 Leases IFRS16 -66 -70 FX and other asset classes -13 -68 Total -526 -396 Total yield cost, R3 4.9% 3.5% Total yield cost, R
Slide 15: Tax rate
Interim report for the third quarter 2025 Tax rate MSEK Q3 2024 Q3 2025 Reported 26.4% 25.8% Excluding IAC 24.1% 25.0% – Normalized tax: In line with guidance Normalized 24.1% 25.0% for 2025 – 23-25% 15
Slide 16: Net working capital
Interim report for the third quarter 2025 Net working capital Net working capital Per BA, % of revenues, R12 SEK Bn 40 40% 40% 35 35% 35% 30 30% 30% 25 25% 25% 20 15 20% 20% 10 15% 15% 5 0 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 17: Free operating cash flow
Interim report for the third quarter 2025 Free operating cash flow SEK Bn 7 140% MSEK Q3 2024 Q3 2025 6 120% EBITDA 6,856 6,984 5 100% 4 80% Non-cash and other items** -669 -664 EBITDA adj for non-cash 3 60% 6,186 6,320 and other items 2 40% Capex -1,179 -817 1 20% NWC 1,755 100 0 0% FOCF 6,762 5,60
Slide 18: Net debt
Interim report for the third quarter 2025 Net debt SEK Bn RATIO 60 1.8 Financial net 50 1.5 debt/R12 EBITDA: 40 1.2 30 20 0.9 0.6 1.2 10 0.3 0 0.0 -10 -0.3 – Financial net debt SEK 33 billion -20 -0.6 – Net debt SEK 41 billion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2
Slide 19: Outcome versus guidance
Interim report for the third quarter 2025 Outcome versus guidance Outcome Q3 Guidance Q3 Currency YoY effect (MSEK) -837 -800 Outcome Q1-Q3’25 Guidance FY25 Capex (BSEK) 2.8 4.5 Interest net (BSEK) -0.6 -0.8 Normalized tax rate (%) 24.1% 23-25% 19
Slide 20: Guidance Q4 and FY 2025
Interim report for the third quarter 2025 Guidance Q4 and FY 2025 Currency effect Given currency rates at the end of September 2025 the effect on operating profit from transaction and translation would be SEK -1 Bn for Q4 2025 CAPEX (Cash) Estimated to approximately SEK 4.5 Bn for 2025 Interest net
Slide 21: Conclusion
Conclusion Order growth momentum and good performance – Strong organic order intake growth of 16% with momentum in key segments – Resilient margin of 19.0% on significant currency headwinds. Tariffs fully mitigated – Strong cash conversion of 105% Leveraging on Sandvik’s solid digital platform – Dou
Slide 22: Q&A
Q&A 22
Slide 23: Backup slides
Backup slides 23
Slide 24: Adjusted EBITA bridge, per BA
Interim report for the third quarter 2025 Adjusted EBITA bridge, per BA Q3 Q3 MSEK Organic Currency Structure 2024 2025 Mining Revenues 15,838 909 -1,511 4 15,240 Adjusted EBITA 3,269 325 -530 -5 3,059 Adjusted EBITA margin 20.6% 20.1% Rock Processing Revenues 2,750 64 -236 22 2,600 Adjusted EBITA 4
Slide 25: Loan and duration profile
Interim report for the third quarter 2025 Loan and duration profile Long term: MSEK Amount Duration Bonds MTN 19,343 3.4 years 78% Bank Loans 8,927 5.8 years Short term: Commercial papers 4,042 0.1 years Bonds MTN Bank Loans 3,860 73 0.7 years 0.5 years 22% Total 36,246 3.3 years Committed Credit fa
Slide 26: Loan maturity profile
Interim report for the third quarter 2025 SEK M Loan maturity profile 8,000 Average interest rate: ~2.7% (excluding swap costs) 6,000 4,000 2,000 0,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 26
Slide 27: Disclaimer statement
Disclaimer statement Some statements herein are forward-looking, and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors for example, the effect of economic conditions, exchange-rate