Letter from the CEO
A stronger Sandvik
We can look back on a successful 2025 for Sandvik. In a year characterized by significant geopolitical uncertainty and trade barriers, we proved the strength of our strategy by delivering good growth, a strong cash flow and resilient profitability, while at the same time advancing our long-term ambitions.
Safety first
Safety always comes first at Sandvik. We have a zero vision for accidents in the workplace, and we continuously review initiatives to ensure our long-term positive trend in safety continues. The Total Recordable Injury Frequency Rate (TRIFR) decreased to an all-time low of 2.3 (3.0) during the year.
Strong strategy execution
Over the past years, we have repositioned the Sandvik portfolio towards areas with higher growth, built a world-class digital offering, expanded our share of aftermarket business, and continuously optimized both the manufacturing footprint and our operational efficiency. Our performance in 2025 was proof of the successful transformation into a faster, more resilient and flexible company, and we showed excellent adaptability by fully mitigating the effect of significant tariff changes. Organic order intake grew by 11 percent, we delivered a robust 19.3 percent (19.2) adjusted operating profit (EBITA) margin and a 5 percent organic revenue growth. We delivered a strong cash flow of SEK 21.2 billion (21.2).
Innovation at our core
Sandvik maintains a high innovation pace as we consistently find new ways to create customer value. We continue to build on our technology leadership within areas such as advanced materials, automation, electrification and digitalization. Our investments in research and development (R&D) amounted to SEK 4.5 billion in 2025, corresponding to 3.8 percent of Group revenues. We continuously work to enhance customer solutions and always look for ways to run Sandvik in an even better way.
The major technology shifts underway in our industries, in areas such as digital technologies and artificial intelligence, provide new opportunities for Sandvik. With our strong customer relationships, leading positions within mining equipment and tools, and world-class digital platforms, we have great potential to further leverage the value we provide with our solutions. In a few years, we have built a digital and software portfolio that generated revenues of SEK 5.5 billion in 2025. We implement AI across our offering, as well as within logistics and in our internal operations, wherever it makes good business sense.
Advancing to 2030
During the year we reaffirmed our long-term financial targets, including an average annual revenue growth of 7 percent and an adjusted EBITA margin range of 20–22 percent, and as of 2026 we have entered a new strategy period, “Advancing to 2030”. We also announced that Machining and Intelligent Manufacturing would become two separate business areas, as of January 2026, which is now in effect. This change further sharpens the focus on profitable growth and provides transparency on the financial development of the two areas, while continuing to deepen collaboration.
I am proud of our accomplishments under the previous Shift Strategy that ended in 2025. We have undergone a significant transformation and repositioned Sandvik. We have divested or spun off businesses with combined revenues of SEK 30 billion and acquired businesses adding revenues of more than SEK 22 billion. This has strengthened our exposure to strategic growth areas such as digital mining and manufacturing, and enhanced our presence in growth segments and regions. In 2025, we welcomed 11 businesses to Sandvik, within areas such as CAM solutions, 3D metrology software, and demolition and recycling equipment.
“Our performance in 2025 was proof of the successful transformation into a faster, more resilient and flexible company.”
Strong growth
Our efforts to increase our share of aftermarket business is clearly yielding results, growing from 31 percent to 40 percent of revenues over the strategic plan timeframe. A large aftermarket business deepens our customer relationships, strengthens resilience, and expands the addressable market.
Growth in both the equipment and the aftermarket business was robust throughout the year as mining customers maintained high activity. This – together with a favorable momentum in software solutions – is very positive as we look to further increase our share of recurring revenues.
We continuously look at ways to improve the way we work, and we took several steps to optimize our organizational structure and strengthen our operational efficiency during the year. The restructuring programs we have run across the Group were important contributors to the resilient earnings performance during the year. We also announced a restructuring plan to strengthen our machining business, targeting annual cost savings of SEK 1 billion by 2030.
Sustainable business
Sustainability is integrated into our business model and a major opportunity for Sandvik since our solutions help our customers improve productivity, safety, and resource efficiency in their operations. Our primary focus is on the use of our products as this is where we have our main impact. Minerals are necessary to enable electrification, and we have an important role to play in supplying our customers with the best solutions to support their needs. We have a strong position through our technology leadership and innovation capabilities in areas such as automation, digitalization and electrification, and in 2025 we received our largest-ever order for battery-electric mining equipment.
In 2025, the closing year of our Shift Strategy, we continued to build a stronger Sandvik in an environment of persistent geopolitical uncertainty. The execution from the organization has been excellent throughout the year, and the solid platform we have built gives us confidence as we look ahead, “Advancing to 2030”. I would like to thank our employees for their outstanding efforts. I also want to extend a big thank you to our shareholders, customers, and business partners for your continued trust.
Stefan Widing
President and CEO