Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Q1 2025 Earnings Presentation
28 slides from Sandvik Ab's earnings presentation, Apr 16, 2025
Slide 1: Interim report first quarter 2025
Interim report first quarter 2025
Slide 2: Summary Q1
Summary Q1 Mixed demand with strong growth in mining – Good momentum in mining, while cutting tools and infrastructure continued to be impacted by uncertain macro environment. Manufacturing software grew mid-single digits – Total order intake increased by 2%, organic growth was 2% – Total revenue in
Slide 3: Innovation and product development are key to our organic growth
Innovation and product development are key to our organic growth – Launch of intelligent cable electric rotary drill rig range with modular design – Flexible power pack to cover the global power supply needs. – AutoMine® and My Sandvik capable DR410iE/DR411iE 3
Slide 4: YoY market development
Interim report for the first 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 Q1 25 Europe 26% -8% North America 25% 4% Asia 18% 9% Africa and Middle East 12% 2% Au
Slide 5: Order intake and revenues
Interim report for the first quarter 2025 Order intake and revenues SEK Bn 35 140 Order intake Reported (MSEK) 32,763 30 120 25 100 Revenues 20 80 Reported (MSEK) 15 10 60 40 29,301 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 2025 0 112% Order intake, r
Slide 6: Growth in order intake and revenues
Interim report for the first quarter 2025 Growth in order intake and revenues Order intake Revenue SEK Bn SEK Bn 50% 120 50% 140 40% 100 40% 120 30% 30% 100 80 20% 20% 80 10% 10% 0 0% 0% 0 -20 -10% -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 Q1
Slide 7: Adjusted EBITA development
Interim report for the first quarter 2025 Adjusted EBITA development SEK Bn 8 22% Adj. EBITA margin: 19.7% 7 +9.2% 20% 6 5 18% 4 – Adj. EBITA SEK 5,768 M (5,281) 16% 3 – Good margin despite seasonally lower 2 2% volumes 1 – Strong leverage on the back of structural 0 0% savings and good cost control
Slide 8: Mining and Rock Solutions
Interim report for the first quarter 2025 Order intake and revenues 52% share of Mining and Rock revenues 2024 SEK Bn Solutions 20 150% 16 100% Order intake 12 – Strong organic order intake development, with double-digit growth in 8 50% equipment. Good underlying demand in aftermarket with strong gr
Slide 9: Rock Processing Solutions
Interim report for the first quarter 2025 Order intake and revenues 9% share of Rock Processing revenues 2024 SEK Bn Solutions 4 150% 3 100% Order intake 2 – Demand in mining remained stable while infrastructure activity remained low 50% 1 in most regions, and especially in Europe – Total order inta
Slide 10: Manufacturing and Machining Solutions
Interim report for the first quarter 2025 Order intake and revenues 39% share of Manufacturing and Machining revenues 2024 SEK Bn Solutions 16 150% 12 100% Order intake – Industrial activity remained low, and cutting tools orders declined in general 8 engineering and automotive in all major regions.
Slide 11: Tariff update
Tariff update – At current tariff rates, expect limited margin impact – The main risk is the overall impact on the global economy Examples of mitigating activities – The flows between China and the US have been mitigated – The flows to Canada and Mexico are being re-routed – Tungsten raw material ex
Slide 12: Cecilia Felton CFO
Cecilia Felton CFO 12
Slide 13: Financial summary
Interim report for the first quarter 2025 Financial summary MSEK Q1 2024 Q1 2025 Growth OI Rev Order intake 31,981 32,763 Organic 2% 1% Revenues 29,002 29,301 Structure 1% 1% Adjusted EBITA 5,281 5,768 Organic + structure 3% 2% Adjusted EBITA margin 18.2% 19.7% Currency -1% -1% Net financial items -
Slide 14: Bridge analysis
Interim report for the first quarter 2025 Bridge analysis Q1 Q1 MSEK 2024 Organic Currency Structure 2025 Revenues 29,002 230 -272 341 29,301 Adjusted EBITA 5,281 203 237 48 5,768 Adjusted EBITA margin 18.2% 88% 19.7% Accretion/dilution 0.6% 1.0% 0.0% 14
Slide 15: Net financials
Interim report for the first quarter 2025 Net financials MSEK Q1 2024 Q1 2025 Interest net -363 -206 Pension -25 -21 Bank charges -29 -29 Other financial income and cost -4 51 Leases IFRS16 -61 -66 Fx and other asset classes -24 -25 Total -506 -296 Total yield cost, R3 5.2% 3.7% Total yield cost, R1
Slide 16: Tax rate
Interim report for the first quarter 2025 Tax rate MSEK Q1 2024 Q1 2025 Reported 26.1% 23.9% Excluding IAC 24.0% 23.8% – Normalized tax: In line with guidance Normalized 24.0% 23.8% for 2025 – 23-25% 16
Slide 17: Net working capital
Interim report for the first 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 202
Slide 18: Free operating cash flow
Interim report for the first quarter 2025 Free operating cash flow SEK Bn 7 140% MSEK Q1 2024 Q1 2025 6 120% EBITDA 4,320 7,094 5 100% 4 80% Non-cash and other items** 638 -1,523 EBITDA adj for non-cash 3 60% 4,957 5,571 and other items 2 40% Capex -1,186 -1,015 1 20% NWC -1 -747 0 0% FOCF 3,770 3,8
Slide 19: Net debt
Interim report for the first 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 1.1 10 0.3 0 0.0 -10 -0.3 – Financial net debt SEK 31 billion -20 -0.6 – Net debt SEK 40 billion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 2024 20
Slide 20: Outcome versus guidance
Interim report for the first quarter 2025 Outcome versus guidance Outcome Q1 Guidance Q1 Currency YoY effect (MSEK) 237 300 Outcome Q1’25 Guidance FY25 Capex (BSEK) 1.0 5.0 Interest net (BSEK) -0.2 -0.8 Normalized tax rate (%) 23.8% 23-25% 20
Slide 21: Guidance Q2 and FY 2025
Interim report for the first quarter 2025 Guidance Q2 and FY 2025 Currency effect Given currency rates at the end of March 2025 the effect on operating profit from transaction and translation would be SEK -600 M for Q2 2025 CAPEX (Cash) Estimated to approximately SEK 5.0 Bn for 2025 Interest net Und
Slide 22: Conclusion
Conclusion Mixed demand and good profit margin – Mixed demand, strength in mining and continued order growth in software while cutting tools impacted by weakness in industrial activity – Improvements in all financial metrics and good margin performance with cost control and good savings realization
Slide 23: Q&A
Q&A 23
Slide 24: Backup slides
Backup slides 24
Slide 25: Adjusted EBITA bridge, per BA
Interim report for the first quarter 2025 Adjusted EBITA bridge, per BA Q1 Q1 MSEK Organic Currency Structure 2024 2025 Mining & Rock Solutions Revenues 14,312 572 -221 12 14,675 Adjusted EBITA 2,605 356 96 1 3,058 Adjusted EBITA margin 18.2% 20.8% Rock Processing Solutions Revenues 2,446 194 -25 -
Slide 26: Loan and duration profile
Interim report for the first quarter 2025 Loan and duration profile Long term: MSEK Amount Duration Bonds MTN 22,690 3.5 years 82% Bank Loans 7,163 5.8 years Short term: Commercial papers 5,151 0.3 years Bonds MTN Bank Loans 799 398 0.4 years 0.5 years 18% Total 36,202 3.4 years Committed Credit fac
Slide 27: Loan maturity profile
Interim report for the first quarter 2025 SEK M Loan maturity profile 8 000 Average interest rate: ~3.1% (excluding swap costs) 6 000 4 000 2 000 - 2025 2026 2027 2028 2029 2030 2031 2032 2033 27
Slide 28: 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