Strategy
Sandvik is a decentralized Group with leading global positions within selected segments in our targeted industries: mining, manufacturing and infrastructure. The Group strategy is rooted in industry-leading innovation capabilities, high customer focus, value-creating premium solutions, a skilled and engaged workforce, and flexible manufacturing. We are at the forefront of advanced materials, automation, digitalization and electrification, all powerful drivers in creating customer value.
The Sandvik strategy aims to create benefits for all our stakeholders – customers, employees, and communities, ultimately leading to shareholder value. It rests on our core values, explicit target setting and a decentralized way of working. In 2025, we concluded the Shift Strategy, and from 2026 we are operating under a new updated strategy, Advancing to 2030, with our long-term financial targets reconfirmed.
Global trends
There are major global trends that impact Sandvik and consequently shape our strategic priorities. The evolution of digitalization, automation and AI creates substantial opportunities to accelerate productivity, safety and resource efficiency across the mining, manufacturing and infrastructure industries. Further enhanced by AI, there are growing opportunities to capture and utilize data to power solutions for real-time decisions and smarter operations across our industries. This trend also puts increasing emphasis on cybersecurity and the need for protection of both our own and our customers’ data, being a core asset of business operations.
Urbanization is a key global trend that increases the long-term demand for infrastructure, metals, and sustainable construction materials. Building the smart cities of the future also drives investments in energy-efficient solutions and recycled solutions for the construction and infrastructure segments.
Increased regionalization impacts Sandvik and our industries, with geopolitical tensions raising the level of trade barriers globally. This development underpins reshoring (bringing production back to the home country) and an increasing demand for localized production and local supply chains. Coupled with protectionism, this trend also drives demand for automated solutions to ensure competitiveness and resilience.
Many regions across the globe are facing skills shortage in the workforce. This development is accelerated by demographic shifts and an aging workforce combined with the trends of manufacturing reshoring and rapid development of new technologies. Addressing these challenges requires an increased level of automation in all our customer industries, and a need for reskilling/upskilling of the current workforce to stay competitive in the future.
The global energy transition and electrification of our societies is driving a rising need for metals and minerals, essential to enable a low-carbon future. This trend also reinforces the need for energy-efficient solutions and smarter processes that are able to deliver more with fewer resources utilized.
Driving growth
Driving growth is a key strategic priority for Sandvik, essential to create value for our stakeholders and ensure successful business results in the long term. The solutions we deliver are crucial for our customers’ processes, and help them become more productive, efficient, safe, and sustainable. With our global reach and strong local presence close to the customers, we are a trusted partner who can respond quickly to changing demand. A large and expanding aftermarket business assures that we can serve our customers in the best way in their everyday operations. We continuously seek to optimize our business portfolio to ensure we have the right exposure to structurally faster-growing segments and regions.
We have a target of 7 percent annual revenue growth over a business cycle. The growth is supported by world-class R&D, technology leadership, and complementing acquisitions to accelerate our positions within targeted regions and segments. Investment in R&D is crucial and normally amounts to about 4 percent of annual revenues. In 2025, we welcomed acquisitions strengthening our portfolio in areas such as 3D metrology software, Computer Aided Manufacturing (CAM) solutions, demolition, and recycling.
Prioritized regions for inorganic expansion are, for example, the US, China, and India, and we made good progress increasing our footprint in markets with strong structural growth over the strategy period. Within business area Machining, we strive to become the clear leader in round tools – a faster-growing area where several acquisitions over the past years have contributed to us now sharing the global number one position. Sandvik also continues to look for opportunities to grow within segments such as aerospace, medical, defense and consumer electronics, that are underpinned by structural demand trends. Within business areas Mining and Intelligent Manufacturing, the focus is on digital solutions complementing the strong existing platforms, whereas business area Rock Processing is targeting niches in downstream mining and infrastructure, such as demolition and recycling.
Strategic growth areas within Mining are surface drilling solutions, where we aim for double-digit growth in 2025–2030, and to accelerate growth within automation and mining software. Within automation and software, we have a strong foundation through AutoMine® – the leading mining automation platform – and the mine planning software business in Deswik. We also aim to advance our market-leading positions in underground mining and aftermarket.
Electrification is another key focus area where we continue to foresee a strong long-term growth trend. Whereas the overall development in this area was slower in 2025, we received the biggest order ever for battery-electric mining equipment for a critical mineral project in the US.
We see an emerging trend towards automation also among our customers within component manufacturing, a trend that is expected to accelerate in the coming years with the rapid developments in AI. We continue to invest in technology and customer channels, and our unique combination of a strong digital portfolio and leading machining process expertise provides a solid platform to meet these evolving demands.
Within Rock Processing, we maintain our focus on developing eco-efficient solutions, addressing the need for improved productivity, and reduced energy and water consumption, within the highly energy-intensive comminution processes.
Building resilience through continuous improvement
We consistently strive to become a more resilient and flexible company to help us adapt faster to cyclical demand swings and better capture growth opportunities. Growing our aftermarket business is an important focus area and from 2019–2025, our aftermarket share of revenues grew from 31 to 40 percent. A strong aftermarket base is important since this business is typically more stable and predictable than equipment revenue. It also strengthens customer relationships and deepens our insights into customer operations.
It is also critical for the Group to continuously improve the way we do things and strengthen operational efficiency. In recent years we have implemented group-wide efficiency measures that support the strategy execution. In 2025 we announced a multi-year plan of restructuring initiatives within Machining, aimed at strengthening efficiency and competitiveness, and optimizing our manufacturing footprint. These measures are expected to generate annual savings of SEK 1 billion by 2030, and during the year we initiated the first phase of this overall plan.
We strive to have localized manufacturing, service coverage and supply chains wherever it makes business sense, as it brings resilience and enables us to quickly react to changing market conditions.
A leading digital offering
Sandvik aims for digital leadership across our industries, and we have rapidly expanded our portfolio of digital solutions in recent years. Total software revenues increased by double digits during the year but did not reach the SEK 6.5 billion revenue target, mainly due to a significant negative currency impact. We are now targeting digital revenues of SEK 13 billion in 2030.
Our strategy is to combine hardware and software to create optimized end-to-end solutions for the mining, manufacturing, and infrastructure industries, future-proofing Sandvik and creating customer value. This also entails continued investing in digitalization and the adoption of new technology throughout Sandvik, creating more automated, efficient, and intelligent operations to leverage our workforce’s expertise and strengthen resilience.
A strong people-centric culture
Our people are our greatest asset and it’s crucial for Sandvik to retain, develop and attract a skilled workforce to deliver on our strategic objectives. We have a strong safety-first performance culture, where we drive and measure employee safety and engagement. For 2025, the Total Recordable Injury Frequency Rate was improved to 2.3 (3.0) and the engagement rate was 7.8 (7.7). We invest in the continuous learning and development of our people and aspire to have an inclusive culture that is characterized by empowerment and accountability. We also invest in long-term competence sourcing with schools, universities and inhouse Sandvik academies.
In 2024, we introduced a parental leave benefit, offering 14 weeks of paid leave for all employees, and in 2025 the benefit was rolled out in more than 50 countries.
Sustainable business
Sustainability is embedded in the way we drive our business, and we always seek to develop solutions that help our customers to operate in a more resource-efficient, safe, productive and sustainable way. About 65 percent of the emissions in our value chain derive from the use of our products, so the largest contribution we can make is to develop the best solutions and processes on the market. We have an increasing number of products that offer sustainability benefits to our customers, for example significant improvements in energy or resource efficiency, circular business models and enhanced safety features. Some of these examples include battery-electric mining vehicles, buyback programs of used materials in both Mining and Machining, and solutions to optimize resource efficiency through our software and cutting tools offering.
We have set targets for greenhouse gas (GHG) emissions that have been validated by the Science Based Targets initiative (SBTi), committing to reaching net-zero emissions by 2050 and reducing absolute emissions from our own operations (scope 1 and 2) by 50 percent by 2030, and 90 percent by 2040. We will also reduce absolute emissions from customers, suppliers and transport (scope 3) by 30 percent by 2030.