Sandvik AB (publ) (SAND) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

A warm welcome to Sandvik's presentation of the fourth quarter results 2025. My name is Louise Cheddar, Head of Investor Relations and beside me I have our CEO Stefan Widing and CFO Cecilia Felton. We will start off with the presentation. Stefan and Cecilia will take you through the highlights of the quarter and the remaining time we will spend on the Q&A session. So let's start. The word is yours. Thank you. And also from my side, of course, a warm welcome to the fourth quarter report in 2025. If we summarize the quarter, we see a strong ending to the year with double digit order intake and revenue growth. We see a strong demand in mining and infrastructure is continuing to improve. There's a mixed demand in cutting tools with strong demand in, for example, aerospace and defense, while automotive remains weak. We also see a strong demand in both software solutions and powder solutions. Total order intake grew by 4% and the organic order intake growth was 15%. Revenue increased totally by 1% and organically by 12%. We also see a stable margin on the significant currency headwinds. Adjusted EBITDA came in at just below 6.4 billion, corresponding to a margin of 19.6%, which is a slight improvement versus last year, even though the figures round to the same number. On the rolling 12-month basis, the margin is 19.3, up from 19.2 in the year before. The savings in the restructuring programs had a positive bridge effect of 131 million in the quarter, and the adjusted profit for the period came in at 4.2 billion, up from 4.1. We also had a strong free operating cash flow of 6.7 billion, corresponding to a cash conversion in the quarter of 110%. A couple of strategic highlights, as always. We continue to see strong momentum for digital solutions in mining. In the quarter, we...