Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Q3 2026 Earnings Presentation
32 slides from Sandvik Ab's earnings presentation, Oct 22, 2026
Slide 1: Interim report third quarter 2026
Interim report third quarter 2026
Slide 2: Summary Q3
Overview Summary Q3 Strong revenues and profit margin – Broad-based demand and strong operational execution, profit margin above target range and record-high cash flow – Total order intake grew by 20% year on year. Organic order intake growth of 17% – Total revenues increased by 29% year on year. Or
Slide 3: Key strategic highlights in the quarter
Overview Key strategic highlights in the quarter Rock Processing Mining Intelligent Manufacturing Machining New standardized screen range Future of surface mining Connecting the dots at IMTS Solid carbide end mills – Compact Screens – Surface concept machine – One of world’s largest trade show – Xil
Slide 4: Mining market
Market development Mining market – High commodity prices continue to underpin strong activity in the mining market and robust demand for equipment and aftermarket – High utilization rate and an aging fleet drives consumption demand for parts and services – Interest in digital and automation solution
Slide 5: Infrastructure market
Market development Infrastructure market Aggregates Demolition & recycling Europe North America Asia 2026-10-22 Interim report for the third quarter 2026 5
Slide 6: Industrial manufacturing market
Market development Industrial manufacturing market General Aerospace Light Mining & Transport- Medical & industry & defense vehicles energy ation electronics Europe North America China India Rest of world 2026-10-22 Interim report for the third quarter 2026 6
Slide 7: Cutting tools organic order intake development
Market development Cutting tools organic order intake development General Aerospace Light Mining & Transport- Medical & industry & defense vehicles energy ation Electronics Europe ++++ ++++ +++ ++++ ++++ ++++ North America ++++ ++++ ++++ ++++ ++++ - China -- ++++ ---- -- ++++ ++++ India ++++ ++++ ++
Slide 8: Order intake and revenues
Group results Order intake and revenues SEK Bn Order intake Reported (MSEK) 40 160 35 140 36,948 30 120 Revenues 25 100 Reported (MSEK) 20 80 15 60 37,728 10 40 Book-to-bill Order intake, reported 5 20 Revenues, reported 98% Order intake R12 0 0 Revenues R12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 202
Slide 9: Growth in order intake and revenues
Group results Growth in order intake and revenues Order intake Revenue Growth Q3 2026 Order intake Revenue Organic 17% 25% 30% 30% Structure 0% 1% Growth at fixed 20% 20% 17% 26% exchange rates 10% 10% Currency 3% 3% Total 20% 29% 0% 0% -10% -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 10: Mining
Business Area results Mining Order intake, revenues & adj. EBITA % SEK Bn 52% share of revenues 2025 25 25% 20 20% Order intake and revenues 15 15% – Demand remained strong for both equipment and aftermarket 10 10% – Good organic order intake growth, driven by strong growth across all aftermarket di
Slide 11: Rock Processing
Business Area results Rock Processing Order intake, revenues & adj. EBITA % SEK Bn 9% share of revenues 2025 4 16% 3 12% Order intake and revenues 2 8% – Underlying demand in mining robust, and positive market sentiment in demolition and recycling – Total order intake decreased by 2%. At fixed excha
Slide 12: Machining
Business Area results Machining Order intake, revenues & adj. EBITA % Y Axis SEK Bn 36% share of revenues 2025 18 30% 15 25% 12 20% Order intake and revenues – Positive demand in general industry, and continued strong 9 15% momentum in aerospace and defense 6 10% – Total order intake increased by 35
Slide 13: Intelligent Manufacturing
Business Area results Intelligent Manufacturing Order intake, revenues & adj. EBITA % SEK Bn 3% share of revenues 2025 1.2 30% 1.0 25% 0.8 20% Order intake and revenues – Positive broad-based demand across regions and segments. 0.6 15% Strongest demand in aerospace and defense 0.4 10% – Double-digit
Slide 14: Cecilia Felton, CFO
Cecilia Felton CFO 2026-10-22 Interim report for the third quarter 2026 14
Slide 15: Financial summary
Third quarter financials Financial summary MSEK Q3 ’25 Q3 ’26 Order intake 30,769 36,948 Revenues 29,218 37,728 Adjusted EBITA 5,539 8,477 Adjusted EBITA margin 19.0% 22.5% Net financial items -396 -304 Tax rate excluding IAC 25.0% 24.3% NWC 1 29.3% 27.2% Free operating cash flow 5,603 7,167 1 ROCE
Slide 16: Profitability development
Third quarter financials Profitability development Adj. EBITA margin: 22.5% SEK Bn 9 27% 8 24% 7 21% 6 18% – Adj. EBITA SEK 8,477 million (5,539) 5 15% – Higher volumes, Powder Solutions and savings 4 12% – Timing effect from tungsten price development estimated to 3 9% SEK 104 million, correspondin
Slide 17: Bridge analysis
Third quarter financials Bridge analysis Q3 Q3 MSEK 2025 Organic Currency Structure 2026 Revenues 29,218 7,336 1000 174 37,728 Adjusted EBITA 5,539 2,690 158 90 8,477 Adjusted EBITA margin 19.0% 37% 22.5% Accretion/dilution 3.6% -0.2% 0.1% 2026-10-22 Interim report for the third quarter 2026 17
Slide 18: Net financials
Third quarter financials Net financials MSEK Q3 ’25 Q3 ’26 Interest net -201 -195 Pension -20 -11 Bank charges -23 -22 Other financial income and cost -14 -37 Leases IFRS16 -70 -66 Fx and other asset classes -68 27 Total -396 -304 Total yield cost, R3 3.5% 4.0% Total yield cost, R12 4.0% 3.9% 2026-1
Slide 19: Tax rate
Third quarter financials Tax rate MSEK Q3 ’25 Q3 ’26 – Normalized tax rate: In line with guidance of 23-25% Reported 25.8% 24.3% Excluding IAC 25.0% 24.3% Normalized 25.0% 24.3% 2026-10-22 Interim report for the third quarter 2026 19
Slide 20: Net working capital
Third quarter financials Net working capital SEK Bn 50 34% 40% 45 33% 40 32% 35% 35 31% 30 30% 30% 25 29% Rock Processing, % of rev., R12 20 28% 25% Intelligent Manufacturing, % of rev., R12 15 27% Machining,% of rev., R12 0% Mining,% of rev., R12 10 26% -20% Machining and 5 Intelligent Manufacturin
Slide 21: Free operating cash flow
Third quarter financials Free operating cash flow SEK Bn 8 160% MSEK Q3 ’25 Q3 ’26 7 140% EBITDA 6,984 9,870 6 120% Non-cash and other items* -664 -501 EBITDA adj for non-cash 5 100% and other items 6,320 9,368 4 80% Capex -817 -998 NWC 100 -1,203 3 60% FOCF 5,603 7,167 2 40% Cash Conversion 105% 87
Slide 22: Net debt
Third quarter financials Net debt Financial net debt/R12 EBITDA 0.9 SEK Bn RATIO 60 1.8 50 1.5 40 1.2 30 0.9 20 0.6 Financial net debt 10 0.3 Net pension liability Leases Financial net debt / R12 EBITDA 0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 – Financial net debt SEK 30 billion – Net d
Slide 23: Outcome versus guidance
Third quarter financials Outcome versus guidance Outcome Q3 Guidance Q3 Currency YoY effect (MSEK) 158 200 Temporary timing effect from tungsten price (MSEK) 104 200 Outcome Q1-Q3 Guidance FY26 Capex (BSEK) 2.8 4-4.5 Interest net (BSEK) -0.5 -0.6 Normalized tax rate (%) 24.2% 23-25% 2026-10-22 Inter
Slide 24: Guidance Q4 and FY 2026
Guidance Guidance Q4 and FY 2026 Currency effect Given currency rates per September 30, the effect on adjusted EBITA from transaction and translation would be SEK +0.6 Bn for Q4 2026 compared to the year-earlier period Temporary timing Based on tungsten prices per September 30, effect from the effec
Slide 25: Conclusion
Summary Conclusion Markets & macro Financial performance Strategic progress Advancing to 2030 – Strong demand in upstream mining. – Order intake grew double digits – Innovations launched in – Consistent delivery each quarter, Increased activity in downstream and strong execution led to 26% strategic
Slide 26: Q&A
Q&A 2026-10-22 Interim report for the third quarter 2026 26
Slide 27: Backup slides
Backup slides 2026-10-22 Interim report for the third quarter 2026 27
Slide 28: Tungsten price dynamics Machining
Tungsten price dynamics Machining Temporary powder price-cost gap ~2 months Powder business Costs inventory Powder price • Sourcing: 10-15% own mine, 55% recycled material, 30-35% – 3 months – 1 month external virgin tungsten (outside of China) • Price-cost gap: • Price: Based on a mix of APT and Ar
Slide 29: Adjusted EBITA bridge, per BA
Adjusted EBITA bridge, per BA Q3 Q3 MSEK Organic Currency Structure 2025 2026 Mining Revenues 15,240 3,555 731 - 19,525 Adjusted EBITA 3,059 1,113 87 0 4,259 Adjusted EBITA margin 20.1% 31% 21.8% Accretion/dilution 2.1% -0.4% 0.0% Rock Processing Revenues 2,600 -11 94 108 2,791 Adjusted EBITA 392 -1
Slide 30: Loan and duration profile
Loan and duration profile Long term: MSEK Amount Duration Bonds MTN 13,701 3.2 years 82% Bank Loans 9,174 4.8 years Commercial papers 5,277 2.7 years Short term: Bonds MTN 6,172 0.7 years Bank Loans 98 0.5 years 18% Total 34,421 3.1 years Committed Credit facilities SEK 11,474 million 2026-10-22 Int
Slide 31: Loan maturity profile
SEK M Loan maturity profile 8 000 Average interest rate: ~2.9% (excluding swap costs) 6 000 4 000 2 000 0 2026 2027 2028 2029 2030 2031 2032 2033 2026-10-22 Interim report for the third quarter 2026 31
Slide 32: 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