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Group total

Order intake and revenue

The demand for Sandvik’s products and solutions was stable overall during 2023, with variations between segments and regions. Demand in mining was on stable high levels, with a decline in equipment orders, compensated by solid growth within parts, services and consumables. Strong momentum was noted in automation and battery-electric solutions. On the back of a more challenging environment, with increased interest rates and inflationary pressure, the infrastructure segment displayed soft demand in all of Sandvik’s major regions. The slow-down in manufacturing activities, also signaled in the global Purchase Managers' Indexes, had a negative impact on volumes in general engineering. Solid demand was noted in the aerospace segment, while the development in automotive was stable. Sandvik’s order intake amounted to SEK 125,011 million (134,019), and revenues were SEK 126,503 million (123,453), implying a bill ratio of 99 percent (109).

Earnings and return

Sandvik’s EBITA increased to SEK 24,530 million (22,471), corresponding to 19.4 percent (18.2) of revenues. The adjusted EBITA increased to SEK 25,240 (24,470) and the adjusted EBITA margin increased to 20.0 percent (19.8) compared to the previous year. Changes in foreign exchange rates affected adjusted EBITA positively by SEK 601 million (3,711) compared with the preceding year. Net financial items amounted to SEK –2,623 million (531). The result before taxes for the Group was SEK 19,794 million (16,983), and SEK 19,794 million (17,738) for continuing operations. Income tax had a total impact of SEK –4,493 million (–5,758) on earnings, corresponding to 22.7 percent (26.9) of profit before taxes. Profit for the year attributable to owners of the Parent Company was SEK 15,300 million (11,212). Basic earnings per share for the Group amounted to SEK 12.20 (8.95) and SEK 12.20 (10.25) for continuing operations. Return on capital employed was 17 percent (17) and return on equity was 18 percent (14).

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2022 is mainly related to the wind-down of operations in Russia, structural measures to support resilience ambitions and M&A costs. The line items affected are mainly Cost of goods and services sold SEK –818 million, Selling expencesss SEK –653 million, Administrative expencesss SEK –450 million, and Other operating expences SEK –708 million . 2023 is mainly related to structural measures to support resilience ambitions announced in May 2022, applicable for all Business Areas, with the main portion related to SMM and SRP. It also includes wind-down of operations in Russia and M&A costs. The line items affected are mainly Cost of goods and services sold SEK –479 million, Administrative expencesss SEK –228 million, Other operating income  SEK 252 million  and Other operating expences SEK –168 million.

Working capital

Relative net working capital for the year was 29 percent (26) of revenues. In absolute terms net working capital amounted to SEK 35,048 million (33,361) at the end of the year. In terms of volume, net working capital increased by SEK 1,687 million compared with the preceding year. Changed currency rates decreased net working capital by SEK –898 million compared with the preceding year. The structural effect from acquisitions and divestments increased working capital by SEK 146 million.

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Cash flow and financing

Cash flow from operating activities increased to SEK 18,797 million (10,465). Net cash flow after investing activities was SEK 10,293 million (–9,839). At the end of the year, cash and cash equivalents amounted to SEK 4,363 million (10,489) and free operating cash flow was SEK 19,582 million (11,985).

Financial net debt was SEK 35,215 million (36,466) and the financial net debt/EBITDA ratio was 1.18 (1.32).

At the end of 2023, Sandvik had unutilized credit facilities SEK 16,525 million equivalent, which includes a revolving credit-facility of SEK 11,000 million, and other SEK 5,525 million equivalent. The remaining duration for the Group’s outstanding bonds is currently 3.8 years. At year-end 2023, Sandvik Group held a long-term credit-rating of A– according to the international credit-rating agency Standard & Poor’s and likewise A–2 for short-term loans.

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Equity at year-end amounted to SEK 87,697 million (81,270), or SEK 69.9 per share (64.8). The equity ratio was 50 percent (46).


Investments in non-current assets for the full year 2023 amounted to SEK 5,354 million (4,530) corresponding to 153 percent of scheduled depreciation. Proceeds from the sale of companies and shares, net of cash, amounted to SEK –164 million (–34). Investments in internally generated intangible assets were SEK 1,085 million (680).

Acquisitions during the year

In February, Sandvik acquired 95 percent of the shares in the Irish-based company PMT Premier Machine Tools Limited, a solutions provider to medical customers in Ireland. In February, Sandvik also completed the previously announced acquisition of Polymathian Industrial Mathematics, an Australia-based provider of advanced mine optimization software and services.

In April, Sandvik acquired the remaining 70 percent of MCB Services and Minerals, a seller of mining software and services. Deswik, a Sandvik-owned company since 2022, had already acquired 30 percent of MCB Services and Minerals in 2019.

In June, Sandvik acquired Norgalv, a galvanizing company in Canada.

In August, Sandvik acquired Postability, a Canadian-based global software firm developing NC (numerical control) post processors for Mastercam.

In November, Sandvik acquired esco GmbH, a German-based supplier of software for power skiving, an important technology within gear machining.

In December, Sandvik acquired Buffalo Tungsten, Inc., a leading US-based manufacturer of tungsten metal powder and tungsten carbide powder.

Parent Company1)

The Parent Company’s revenues for 2023 amounted to SEK 13,705 million (13,139) and the operating result was SEK –6,868 million (4,906). The result from shares in Group companies of SEK 12,855 million (11,166) for the year consists mainly of dividends and contributions. Interest-bearing liabilities, less cash and cash equivalents and interest-bearing assets, amounted to SEK 38,011 million (16,147). The Parent Company’s total assets increased by SEK 17,546 million, from SEK 82,868 million to SEK 100,414 million. Investments in non-current assets amounted to SEK 384 million (320).

The number of employees in the Parent Company and the subsidiaries operating on commission for Sandvik AB as of December 31, 2023 was 3,641 (3,720).

1) The Parent Company includes subsidiaries operating on commission for Sandvik AB. These are presented in note P12.


The Board of Directors proposes a dividend of SEK 5.50 per share (5.00). The dividend proposal represents 43 percent (42) of adjusted earnings per share, dilutive for the Sandvik Group in total.

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x number of shares




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The average number of employees amounted to 40,686 (42,318), of which 21 percent (20) were women. The employee turnover rate was 10 percent (12). Wages, salaries and other remunerations for the year totaled SEK 26,323 million (25,467).

Current guidelines for the remuneration of senior executives

The below remuneration guidelines were approved by the Annual General Meeting 2020 and apply until the Annual General Meeting 2024.

Scope of the guidelines

These guidelines encompass the President and other members of the Group Executive Management. The guidelines do not apply to any remuneration decided on or approved by the General Meeting.

The guidelines’ promotion of the Company’s business strategy, long-term interests and sustainability

A prerequisite for the successful implementation of the Company’s business strategy and safeguarding of its long-term interests, including its sustainability, is that the Company is able to recruit and retain qualified personnel. To this end, it is necessary that the Company offers competitive remuneration. These guidelines enable the Company to offer senior executives a competitive total remuneration. For more information regarding the Company’s business and sustainability strategy, please see the Company’s website:

Types of remuneration

The total remuneration package should be based on market terms, be competitive and reflect the individual’s performance and responsibilities as well as the Group’s earnings trend. The remuneration may consist of fixed salary, variable remuneration, pension benefits and other benefits.

Fixed salary

The purpose of the fixed salary is to attract and retain senior executives with the right competence for the respective positions. The salary level should be determined by comparing the salary to similarly complex positions within a defined peer group.

Variable remuneration

Variable share related remuneration

The Company may offer long-term share related or share price related remuneration. Such programs are adopted by the General Meeting and are therefore not covered by these guidelines. There are currently ongoing long-term share related incentive programs for senior executives and key employees in the Group. For more information on these programs, see the Company’s website:

Variable cash remuneration

The Company may offer short or long-term variable cash remuneration. The fulfillment of objectives for awarding such remuneration shall be measured over a period of one to three years. Such remuneration may amount to not more than 75 percent of the fixed annual salary per year.

Variable cash remuneration shall be conditional upon the fulfillment of defined and measurable criteria. These criteria shall aim at promoting the Company’s business strategy and performance as well as its long-term interests, including its sustainability. At the beginning of each year the Board of Directors and the Remuneration Committee shall establish the criteria, including key performance indicators (KPIs) and the target ranges, deemed relevant for the upcoming measurement period. The criteria may be financial, with at least three KPIs, and non-financial, and shall always be related to business performance. At least 80 percent of the variable cash remuneration shall be linked to the financial criteria. The President and Group Function heads shall be measured on Group level KPIs and the Business Area Presidents shall be measured on both Group level and Business Area level KPIs. The established KPIs shall be presented on the Company’s website: The extent to which the criteria for awarding variable cash remuneration have been fulfilled shall be determined when the measurement period has ended and will be published in the Report on Evaluation of Remuneration the following year. For financial criteria, the evaluation shall be based on the latest financial information made public by the Company.

Special arrangements

In specific cases, the Company may offer one-off remuneration provided that such remuneration is only made on an individual basis, for the purpose of recruiting or retaining senior executives, does not exceed an amount corresponding to 100 percent of the individual’s fixed annual salary and maximum variable cash remuneration, and is not paid more than once per year and individual.

Right to withhold or reclaim remuneration

Terms and conditions for variable remuneration shall be designed so that the Board of Directors (i) has the right to limit or refrain from payment of variable remuneration if exceptional economic circumstances prevail and such a measure is considered reasonable, and (ii) has the right to withhold or reclaim variable remuneration paid to an executive based on results that afterwards were found to have been misstated because of wrongdoing or malpractice (so called malus and clawback).

Pension benefits

For the President, the pension benefit shall be defined contribution and the pension premiums shall amount to not more than 37.5 percent of the fixed annual salary. For the other senior executives, pension benefits shall be defined contribution and amount to not more than 55 percent of the fixed annual salary, in accordance with the Swedish ITP1 pension scheme. Exceptions to this main rule may be decided on for senior executives with existing defined benefit schemes provided that the cost of such schemes does not exceed the above mentioned cap.

Other benefits

Other benefits may include, for example, life insurance, medical insurance and company car benefit. Such benefits may amount to not more than 5 percent of the fixed annual salary. For senior executives in need of double accommodation, paid accommodation, etc. may be added in line with Sandvik’s regulations and such benefits may amount to not more than 20 percent of the fixed annual salary.

Termination of employment

Severance pay may be paid when employment is terminated by Sandvik. The President and the other senior executives may have a period of notice of not more than 12 months, in combination with severance pay corresponding to 6–12 months fixed salary. When employment is terminated by the senior executive, the notice period may not exceed six months and no severance pay shall be paid.

In case a senior executive is not entitled to severance pay, but is covered by a non-compete undertaking, the senior executive may instead be compensated for such a non-compete undertaking. Any remuneration paid as compensation for a non-compete undertaking shall not exceed 60 percent of the fixed salary at the time of notice of termination of the employment and shall not be paid for a longer period than 18 months. Fixed salary during the notice period together with any compensation for the non-compete undertaking shall not exceed an amount equivalent to the senior executive’s fixed salary for 24 months.

Consideration of remuneration to the Company’s employees

When preparing the proposal for these guidelines, the employment conditions applied within the Company as a whole have been used as a benchmark, following the principle that the remuneration packages of all Sandvik employees should be based on the complexity of the position, performance and market practice. In general, the same combination of remuneration components such as fixed salary, variable remuneration, pension and other benefits are offered within Sandvik.

The decision-making process to determine, review and implement the guidelines

The Board of Directors has established a Remuneration Committee. The Committee’s tasks include preparing the Board of Directors’ decision to propose guidelines for senior executive remuneration. The Board of Directors shall prepare a proposal for guidelines at least every fourth year and submit it to the General Meeting. The guidelines shall be in force until new guidelines are adopted by the General Meeting. The Remuneration Committee shall also monitor and evaluate programs for variable remuneration for the executive management, the application of the guidelines for senior executive remuneration as well as the current remuneration structures and compensation levels in the Company. The members of the Remuneration Committee are independent of the Company and its executive management. The President and the other senior executives do not participate in the Board of Directors’ processing of and resolutions regarding remuneration-related matters to the extent that they are affected by such matters.

Decisions on remuneration to the President are taken by the Board of Directors, based on proposals from the Remuneration Committee, and decisions on remuneration to the other senior executives are taken by the Remuneration Committee.

Adjustments to local rules

Remuneration under employments subject to other rules than Swedish may be duly adjusted to comply with mandatory rules or established local practice, taking into account, to the extent possible, the overall purpose of these guidelines.

Derogation from the guidelines

The Board of Directors may temporarily resolve to derogate from the guidelines, in whole or in part, if in a specific case there is special cause for the derogation and a derogation is necessary to serve the Company’s long-term interests, including its sustainability, or to ensure the Company’s financial viability. As set out above, the Remuneration Committee’s tasks include preparing the Board of Directors’ resolutions in remuneration-related matters. This includes any resolutions to derogate from the guidelines.

For information concerning the current remuneration of senior executives, including ongoing long-term incentive programs, refer to note G4.

Proposal for new guidelines for the remuneration of senior executives

The Remuneration Committee has recommended that the Board of Directors proposes that the Annual General Meeting 2024 adopt guidelines for remuneration with, in principle, the same content as the current guidelines. However, a change is proposed in respect of pension benefits where the cap for defined contribution benefits is lowered to be better aligned with market practice and the possibility to offer defined benefit schemes is removed.

In light of the above, the Board of Directors proposes that the Annual General Meeting 2024 resolves on guidelines for remuneration with the same content as the guidelines that were resolved at the Annual General Meeting 2020, with the exception of the section on pension benefits, which is proposed to have the following new wording:

For the President, the pension benefit shall be defined contribution and the pension premiums shall amount to not more than 37.5 percent of the fixed annual salary. For the other senior executives, pension benefits shall be defined contribution and amount to not more than 35 percent of the fixed annual salary.

Research and development (R&D)

Each business area is responsible for its own R&D activities. Focus areas are machining materials and process development, powder metallurgy, electrification and digital solutions.

Sandvik has a portfolio of approximately 6,921 (7,079) active patents. In 2023, 722 (725) new patents were granted. Investments in R&D were SEK 4,803 million (4,471), corresponding to 3.8 percent (4.0) of revenues. The number of employees in R&D, including Quality Assurance, was 3,134 (3,009).


Sandvik is a multinational group with many intercompany transactions. The OECD has issued guidelines for transfer pricing of cross-border transactions in multinational groups. Sandvik adheres to these guidelines and also to the local legislation of each country to ensure that a correct pricing model is deployed and that a correct amount of tax is paid in each country. Sandvik monitors the OECD’s tax reform work and the EU initiatives on tax transparency carefully and observes these standards as and when enacted. Sandvik strives to have good relations with our stakeholders, such as tax authorities, non-governmental organizations and investors.

Sandvik has initiated cooperation with tax authorities in several countries. We are convinced that an open discussion and cooperation with tax authorities around the globe will help us to reduce uncertainty about the taxes we are obliged to pay. We contribute to the local communities and countries in which we operate in the form of, for example, taxes and employment opportunities. In 2023, the Group paid SEK 6,852 million (5,262) in income taxes globally. Income tax comprises just a portion of all taxes paid by Sandvik worldwide. In addition, we pay social security contributions, environmental and energy taxes, property taxes, etc. Furthermore, Sandvik collects and pays taxes at the request of governments and authorities, including indirect taxes and withholding taxes.


In Sweden, Sandvik operates under licenses at nine sites in accordance with the Swedish Environmental Code. Each site holds the necessary environmental permit, and none of them exceeded their limits throughout the year. In 2023, new environmental permits were applied for the Sandviken (Sweden) sites. Sandvik Additive Manufacturing and Sandvik Coromant received new permits while the permit process for Sandvik Rock Tool was still ongoing at year-end. Notifications for operational changes and renewal of permission for handling flammable goods were submitted for Seco Tools in Fagersta. The site in Arboga was closed at the end of the year.

Statutory sustainability report

Sandvik has, in accordance with the Annual Accounts Act, prepared a statutory sustainability report, approved for issue by the Board of Directors and the President and CEO. The Statutory Sustainability Report and Sustainable Business Report comprise pages About Sandvik, Sustainability targets, Shift to growth, Risk management, Non-financial notes

Events after the end of the period

On January 25, Sandvik announced a new restructuring program to strengthen operational efficiency and resilience. The program will generate annual savings of about SEK 1.2 billion.