Sweden's SKF Q1 sales fall on weak automotive demand

SKF AB

21/04/2026 06:42

Corrects Key Details tabel to show sales, EBIT and Adjusted Ebit was reported in billions, not millions

Overview

Sweden bearings maker's Q1 net sales fell yr/yr, but organic growth was positive

Adjusted operating margin for Q1 was flat yr/yr despite significant currency headwinds

Company reported negative cash flow from operations, mainly due to restructuring and separation costs

Outlook

SKF expects Q2 market demand to remain at similar levels as Q1

Company expects Q2 organic sales to be relatively unchanged year-over-year

SKF sees Q2 currency impact on operating profit around MSEK –100 year-over-year

Result Drivers

INDUSTRIAL SEGMENTS - Organic sales growth in Industrial segments, especially in Asia and SIS, offset weaker Automotive demand

PRICE/MIX IMPROVEMENT - Solid price/mix development, mainly from tariff-related price increases and stronger aftermarket performance in SIS and Automotive

COST ACTIONS - Rightsizing initiatives and cost actions helped maintain margins despite currency headwinds and separation costs

Company press release: ID:nWkr87rn4P

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
SEK 21.87 bln
Q1 Adjusted EPS
SEK 4.25
Q1 Adjusted EBIT
SEK 2.95 bln
Q1 Adjusted EBIT Margin
13.50%
Q1 Basic EPS
SEK 3.57
Q1 EBIT
SEK 2.64 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and 5 "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 SEK250.00, about 1% above its April 20 closing price of SEK247.60

The stock recently traded at 14 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.)