Sandvik AB (publ) (SAND) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to Sandvik's presentation of the first quarter results 2026. We want to start apologizing. We had some technical issues and therefore we're a bit late. We will start as usual with Sandvik presenting the highlights of the first quarter and presenting our CEO Stefan Widing and our CFO Cecilia Felton. And my name is Louise Cheddar, head of investor relations. So we start with the presentation and the remaining topics. Time we will spend on the Q&A session. And with this short welcome, I hand over the word to you, Stefan. Thank you, Louise. Also from my report in 2026. As you have already seen, we had a strong start to the year. Strong demand across all business areas with double-digit organic growth in the quarter in all four business areas. Total order intake grew by 12% and organic order intake growth was 23%. Total revenues increased by 5% and the organic growth was 15%. Adjusted EBITDA was just over 6.1 billion SEK, corresponding to a margin of 20% up from 19.7 last year. Also, the adjusted profit for the period increased to 4.1 billion from 3.8 in the prior year. We had a free operating cash flow of 3.6 billion, corresponding to a cash conversion of 62%, which is in line with normal seasonality for this time of the year. Some strategic highlights in the quarter. In mining, we completed an acquisition of Thorotech Simulation. Thorotech is designing and delivering OEM agnostic mining and construction training simulators. This is a key capability for us as there is a skills gap in the industry and the machines are getting more and more advanced. So a very good addition that will strengthen our aftermarket and digital offering. Rock Processing launched two new cone crushers in the high running segments, the 400 and the 600 series in the quart...