Market and financial development

Market

The cutting tools market remained mixed in 2025. Underlying demand in general engineering was muted but stable, a consequence of the subdued industrial cycle. Demand in aerospace was strong during the year, after multiple years of backlog with large aerospace manufacturers, while the automotive industry remained weak. Sandvik also noted solid order intake development in the defense segment, where geopolitical unrest has spurred increased investments.

Scarce global supply of tungsten powder, following trade restrictions, resulted in sharp price hikes. Increased investment in digital solutions continued with strong momentum in the manufacturing software business.

Financial development

Order intake, at fixed exchange rates, increased by 5 percent, of which 4 percent was organic. Revenues, at fixed exchange rates, increased by 3 percent, of which 2 percent was organic. Pricing and tariff surcharges contributed to the positive revenue development.

Adjusted EBITA amounted to SEK 9,385 million. The operating profit margin was 19.9 percent, negatively impacted by currency. Tariffs were fully mitigated thanks to swift implementation of tariff surcharges.