Financial targets

Sandvik has long-term financial targets focusing on growth, profitability, financial position and dividend.

Growth

Target

A growth of 7 percent through a business cycle, organically and through acquisitions, excluding currency.

Outcome

A revenue growth (CAGR vs 2019) of 6 percent. Revenue growth was 4 percent over a three-year period and 10 percent over a five-year period.

EBITA margin range

Target

An adjusted EBITA margin range through a business cycle of 20–22 percent.

Outcome

The adjusted EBITA margin amounted to 19.3 percent (19.2).

Financial net debt/EBITDA

Target

A financial net debt/EBITDA ratio below 1.5.

Outcome

The financial net debt/EBITDA ratio was 0.9 (1.2).

Dividend payout ratio¹⁾

Target

A dividend payout ratio of 50 percent of earnings per share, adjusted for items affecting comparability, through a business cycle.

Outcome

A solid performance in 2025 resulted in a proposed dividend of SEK 7.5 billion (7.2) corresponding to a payout ratio of 49 percent. The average payout ratio for a three-year period amounted to 47 percent and for a five-year period to 45 percent.

1) The dividend payout ratio is only related to cash dividends and does not consider the distributed value from Alleima to shareholders in 2022. The ratio is calculated on adjusted earnings per share, diluted, for the total Group for all years except 2022, when it excludes earnings related to Alleima.