Sweden's SKF posts flat Q2 sales, beating estimates

SKF AB

17/07/2026 06:46

Overview
Sweden bearings maker's Q2 net sales were flat yr/yr, beating analyst expectations
Organic growth driven by industrial segments offset automotive weakness; cash flow declined on separation costs

Outlook
SKF expects organic sales to strengthen somewhat in Q3 2026, year-over-year
Company sees currency impact on Q3 operating profit at around MSEK 100, year-over-year
SKF expects FY 2026 tax level around 29%, excluding effects from divestments and Automotive separation

Result Drivers
SIS SEGMENT STRENGTH - Growth and improved profitability in Specialized Industrial Solutions, especially Aerospace and Magnetic Solutions, drove overall margin improvement
AUTOMOTIVE WEAKNESS OFFSET - Organic growth was offset by negative market demand in the Automotive business, though China showed strength in light and commercial vehicles
RIGHTSIZING SAVINGS - Cost savings from rightsizing activities more than offset negative synergies from the Automotive separation

Company press release: ID:nWkr87T4t2

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
SEK 23.20 bln
SEK 22.96 bln (11 Analysts)
Q2 Adjusted EPS
 
SEK 4.98
 
Q2 EBIT
 
SEK 2.22 bln
 
Q2 Adjusted EBIT
 
SEK 3.22 bln
 
Q2 Adjusted EBIT Margin
 
13.90%
 
Q2 Basic EPS
 
SEK 2.77
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for SKF AB is SEK263.50, about 0.2% below its July 16 closing price of SEK264.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)