Sandvik AB (publ) (SAND) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

A warm welcome to Sandvik's presentation of the second quarter results 2026. My name is Louise Cheder, Head of Investor Relations here at Sandvik. And beside me, I have our CEO Stefan Widing and CFO Cecilia Felton. We will, as usual, start with the presentation. Stefan and Cecilia will take you through the highlights of the quarter. And after that, we go on to the Q&A session. So without further ado, over to you, Stefan. Thank you, Louise, and welcome also from my side to the second quarter report presentation. To summarize the quarter, it was a very strong quarter with record revenues and profits. We see strong momentum across key regions and segments, as well as also good price realization, which is, of course, very important in the current environment. Total order intake grew by 17%, and organically we grew by 17% as well. Total revenues increased by 24%, but organically 23%. Adjusted EBITDA came in at 8.3 billion, up from 5.6 in the prior year period. This corresponds to a margin of 22.6%, up from 19%, and rolling 12-month EBITDA margin is now 20.4%. Adjusted profit for the period, 5.8 billion, up from 3.7, and the free operating cash flow came in at 3.6, corresponding to a cash conversion of 46%. This is on the lower side, but it's driven, of course, by our significantly higher invoicing, and we'll go through the components of that a little bit more throughout the presentation. We'll start with highlighting the acquisition we announced in the quarter, which is very strategic for us, the filter press manufacturer DiEM filtration, which is based in Italy. This means that we are entering a new market segment in mining, filtration and dewatering, and this will also form the base for a new filtration division within rock processing. We have said for a number of years...