Sweden's SKF Q4 sales fall on automotive decline

SKF AB

30/01/2026 06:38

Overview

Sweden-based bearing maker's Q4 net sales declined yr/yr, organic growth flat

Adjusted operating margin improved to 11.8% despite currency headwinds

Cash flow from operating activities was MSEK 2,758, impacted by comparability items

Outlook

SKF expects Q1 2026 market demand to remain similar to Q4 2025

Company anticipates Q1 2026 organic sales to strengthen year-over-year

SKF projects FY 2026 tax level at around 28%

Result Drivers

INDUSTRIAL GROWTH - Organic sales growth in Industrial business driven by Aerospace and Magnetic bearings in Europe and tariff-related price increases in Americas

AUTOMOTIVE DECLINE - Automotive business saw declining sales due to challenging market conditions in Europe and Americas

COST MANAGEMENT - Improved adjusted operating margin due to positive cost developments and solid price/mix contribution, despite lower volumes and currency headwinds

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
SEK 21.97 bln
Q4 Adjusted EPS
SEK 3.50
Q4 Adjusted EBIT
SEK 2.59 bln
Q4 Adjusted EBIT Margin
11.80%
Q4 Basic EPS
SEK 1.25
Q4 EBIT
SEK 1.56 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 8 "hold" and 3 "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 SEK270.00, about 7.2% above its January 29 closing price of SEK251.80

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nWkr4VPKsG

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(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.)