SSKFExecutive Cockpit

AB SKF · Enterprise 360

The whole group in one screen — net sales, adjusted vs reported profit, the segment & region mix, the aftermarket spine, the Vertevo separation and the EV bridge. Every figure live off the governed dataset, in SEK.

AB SKF (SKF Group) · FY2025 (Jan–Dec 2025, audited anchor)
World's largest bearing maker today — clear #1 in industrial bearings
37,271 employees · 90+ sites · 130 countries
Executive read· the answer, then the moves

Net sales SEK 91.6 bn — organic −0.4%, reported −7.2% on a −6.6% currency swing; H1 2026 organic is already +1.9%. Adjusted operating profit SEK 11.7 bn at 12.7% (reported 8.5% after SEK 3.9 bn of items affecting comparability). The story is the Vertevo separation (listing Q4 2026) on a fortress balance sheet at 0.8× — with the aftermarket spine (37% of sales) dampening the cycle.

5 of 8 headline metrics improving vs prior · still off target: Adjusted Operating Profit SEK 11.7 bn vs SEK 12.2 bn, Adjusted Operating Margin 12.7% vs 17.0%, Aftermarket & Services Revenue SEK 33.5 bn vs SEK 36.0 bn

Do now — ranked by urgency
  1. 1
    Land the Vertevo separation on the Q4 2026 windowWatch
    Why it matters

    Automotive (SKF Vertevo) has been stand-alone inside the group since Jan 2026 (own board, own central costs, restated reporting); the extra production-line transfers moved the listing H1 → Q4 2026, inside the announced cost envelope.

    What's driving it
    • 4 of 9 operating brands still integrating
    • Listing pending Board proposal + EGM (autumn 2026); IAC guide BSEK −2.5 to −3.0
    FYI
    • Net sales SEK 91.6 bn; adjusted margin 12.7% → 13.7% H1 2026
    • Owner: CEO · Rickard Gustafson · Vertevo CEO Kerstin Enochsson
  2. 2
    Pull DSO and working capital back to targetWatch
    Why it matters

    DSO 65d vs 60 target (NWC 30.4% of sales); the separation working-capital build dented H1 2026 operating cash flow. Net debt is only 0.8× — a fortress with headroom to the 3.0× ceiling.

    What's driving it
    • DSO 65d
    • Net debt / adj EBITDA 0.8× (net debt SEK 12.1 bn, SKF definition incl. pensions & leases)
    FYI
    • EV SEK 130.1 bn = market cap SEK 118.0 bn + net debt SEK 12.1 bn
    • Post-spin optionality: bolt-ons, potential buyback / extra distribution
  3. 3
    Reported −7.2% is currency, not demandWatch
    Why it matters

    Quote organic for demand and reported for scale; hold tariff-compensating pricing discipline.

    What's driving it
    • Growth split
    • Signal: Alert
    FYI

    FY2025 sales fell 7.2% reported but organic was only −0.4% — currency −6.6% (USD/SEK −16.5%). H1 2026 organic already +1.9%.

  4. 4
    NSK–NTN merger would displace SKF as #1 by revenueWatch
    Why it matters

    Press the industrial-bearings lead: aftermarket depth, technology and regionalization — word superlatives carefully.

    What's driving it
    • Competitive position
    • Signal: Alert
    FYI

    Basic agreement 12 May 2026; joint holding company targeted for Oct 2027 (~24% combined share, press estimate; regulatory risk remains).

📈 Industrial growth & aftermarketStep 3 of 7 · is the consolidated group on track?Value Creation PlanFinance 360All journeys
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Net Sales
SEK 91.6 bn
▼ 7.2% vs priorTarget SEK 93.0 bn
Adjusted Operating Profit
SEK 11.7 bn
▼ 4.2% vs priorTarget SEK 12.2 bn
Adjusted Operating Margin
12.7%
▲ 3.3% vs priorTarget 17.0%
Aftermarket & Services Revenue
SEK 33.5 bn
▼ 4.0% vs priorTarget SEK 36.0 bn
Organic Growth (H1 2026)
1.9%
▲ 575.0% vs priorTarget 4.0%
Aftermarket & Services Mix
37.0%
▲ 5.7% vs priorTarget 40.0%
DSO (Days Sales Outstanding)
65d
▼ 4.4% vs priorTarget 60d
Net Debt / Adj EBITDA
0.8x
▼ 20.0% vs priorTarget 3.0x
Group financials · FY2025 (calendar year)

Adjusted vs reported — labeled

SKF headlines adjusted; reported is depressed by SEK 3.9 bn of items affecting comparability (rightsizing · separation · impairments, net of divestment gains). Quote organic for demand, reported for scale.

Net sales
organic −0.4% · currency −6.6% · structure −0.2% = reported −7.2% (H1 2026 organic +1.9%)
SEK 91.6 bn
Adjusted operating profit
the headline; reported operating profit SEK 7.8 bn · 8.5% after IAC SEK 3.9 bn
SEK 11.7 bn · 12.7%
Net profit (reported)
adjusted net profit SEK 8.2 bn; EPS 8.62 / adjusted 17.23 (ETR 33.9% vs 26.8% underlying)
SEK 4.2 bn
Net cash flow after investments
incl. +2,188 divestment proceeds (clean ≈ 4.7 bn); operating cash flow 8,392
SEK 6.9 bn
The central story

SKF Vertevo — separation in flight

The Automotive business runs stand-alone inside the group since Jan 2026 (own board, own central costs, restated 3-segment reporting). Name announced 26 Feb 2026; Nasdaq Stockholm listing planned Q4 2026, pending a Board listing proposal and an EGM (autumn 2026) to approve the Lex Asea distribution. Not yet listed.

Listing Q4 2026Restated Automotive perimeter SEK 23.6 bn
Open Separation & Re-rating →
Valuation & leverage

EV → market cap · fortress at 0.8×

EV SEK 130.1 bn
  − Net debt SEK 12.1 bn (SKF def. incl. pensions & leases)
  = Market cap SEK 118.0 bn

Net debt / adjusted EBITDA 0.8× vs the 3.0× ceiling — huge headroom (net debt/equity ex-pensions 10.2% vs <40% target). Post-spin balance-sheet optionality is a live equity point.

Smart Alerts

Flagged issues that need attention

Automatically detected and persona-routed — click any alert to open the 360 that owns it and act.

ceo · Growth splitWatch
Reported −7.2% is currency, not demand
FY2025 sales fell 7.2% reported but organic was only −0.4% — currency −6.6% (USD/SEK −16.5%). H1 2026 organic already +1.9%.
Do: Quote organic for demand and reported for scale; hold tariff-compensating pricing discipline.
ceo · Separation readinessOpportunity
Separation on track for Q4 2026
Vertevo stand-alone since Jan 2026 (own board, own central costs, restated reporting); extra production-line transfers running inside the cost envelope.
Do: Hold the window: Board listing proposal → EGM (autumn) → Lex Asea distribution → Q4 2026 listing.
cfo · Net Debt / Adj EBITDAOpportunity
Fortress balance sheet at 0.8×
Net debt MSEK 12,052 (SKF definition incl. pensions 6,372 + leases 2,895) = 0.8× adjusted EBITDA; net debt/equity ex-pensions 10.2% vs <40% target.
Do: Preserve optionality — bolt-ons and potential extra distribution/buyback after the spin.
cfo · Items affecting comparabilityWatch
IAC guidance BSEK −2.5 to −3.0 for 2026
Separation plus Americas footprint consolidation front-load costs (Q2 2026 IAC −1,004, roughly half separation / half footprint).
Do: Keep separation spend inside the announced envelope; track footprint payback quarter by quarter.
cfo · DSOWatch
DSO 65 vs 60 target — NWC 30.4% of sales
>60d AR ≈ MSEK 2,400; the separation working-capital build dented H1 2026 operating cash flow (Q1 −446).
Do: Tighten OEM terms & collections; unwind the separation WC build in H2 2026.
board · Competitive positionWatch
NSK–NTN merger would displace SKF as #1 by revenue
Basic agreement 12 May 2026; joint holding company targeted for Oct 2027 (~24% combined share, press estimate; regulatory risk remains).
Do: Press the industrial-bearings lead: aftermarket depth, technology and regionalization — word superlatives carefully.
board · Adjusted Operating MarginOpportunity
Margin expanding through the carve-out
Adjusted margin 12.7% FY2025 → 13.7% H1 2026 (Q2 13.9%); rightsizing run-rate ~1.4 of BSEK 2 banked.
Do: Stay on the post-spin frame: >17% mid-term, >19% long-term for the industrial pure-play.
board · Aftermarket & Services MixOpportunity
Aftermarket spine holds the cycle
Aftermarket & services ≈ MSEK 33,500 (37% of sales); >50% of Industrial revenue is recurring and cycle-dampening.
Do: Scale condition monitoring & REP contracts across the 17,000-location distributor network.
Exhibit 1

Net sales & adjusted operating profit — monthly

Consolidated group, FY2025 (SEK) · SEK 91.6 bn net sales · 12.7% adjusted margin

Exhibit 2

Net sales by segment

Bearing Solutions · Specialized Industrial Solutions (SIS) · Automotive (SKF Vertevo)

Bearing Solutions54%
Automotive (SKF Vertevo)26%
Specialized Industrial Solutions (SIS)21%
Exhibit 3

Region performance

Click into Org Roll-up 360 to drill region → segment → factory

RegionClustersNet salesShareStatus
EMEA6SEK 37.5 bn41.0%Watch
Americas4SEK 26.6 bn29.0%On track
China & Northeast Asia3SEK 17.4 bn19.0%On track
India & Southeast Asia2SEK 10.1 bn11.0%On track
Drill the roll-up →
Exhibit 4

Operating brands — revenue & state

The portfolio behind the segments — green = integrated · amber = in progress

SKF is the master brand ≈ the Industrial business; Vertevo is the automotive spin. Brands & Portfolio 360 →

Exhibit 5

KPI scorecard — actual vs target

Board-approved targets; current values auto-calculated from live data

ObjectiveKPICurrentTargetProgressStatus
Deliver the Vertevo separation & Q4 2026 listing (Lex Asea)Separation readiness78%100%
78%
On track
Lift Vertevo to a high-single-digit adjusted marginVertevo adj margin3.8%8%
48%
Behind
Hold the fortress through separation (dividend SEK 7.75 intact)Net debt / adj EBITDA0.8x1x
125%
On track
Adjusted operating margin to >17% mid-term (>19% long-term)Adj operating margin12.7%17%
75%
Behind
Scale SIS as the expansion engine (aero · lubrication · magnetic)SIS adj margin11.5%15%
77%
On track
Decarbonize own operations −95% by 2030 (SBTi)CO2 reduction vs 201979%95%
83%
On track
Produce-where-you-sell (Americas consolidation, China-for-China)Regional supply share78%90%
87%
On track
Carry WCM gains into the next factory-productivity waveCapacity utilization84%90%
93%
On track
Grow the recurring aftermarket & services spineAftermarket & services revenue33500MSEK36000MSEK
93%
On track
Scale condition monitoring & REP contracts (AI-enabled)CM & REP revenue2930MSEK4000MSEK
73%
On track
Footprint Heatmap

The manufacturing footprint at a glance

Each dot is a factory / logistics cluster. Colour = operational health (green = healthy · amber = watch · red = at risk). Hover for detail; open Factories & Footprint 360 to act on one.

Global manufacturing & logistics network · 90 sites in ~28 countries
HealthyWatchAt riskHQ
Clusters by region
AmericasSEK 26.6 bn
USA factories & logistics (consolidating)SEK 14.6 bn
Monterrey · Mexico (region-for-region)SEK 6.0 bn
Brazil & LatAm clusterSEK 4.0 bn
US condition-monitoring & service hubsSEK 2.0 bn
China & Northeast AsiaSEK 17.4 bn
China factories (region-for-region)SEK 12.4 bn
Shanghai tech centre & distributionSEK 3.0 bn
Japan & South KoreaSEK 2.0 bn
EMEASEK 37.5 bn
Schweinfurt & Germany clusterSEK 9.5 bn
Gothenburg (HQ · Sweden factories & R&D)SEK 6.5 bn
CEE cluster (Poland · Bulgaria · Austria)SEK 6.5 bn
Airasca · Italy (super-precision, +30% capacity)SEK 5.2 bn
UK & Nordics distribution/logisticsSEK 5.0 bn
France & Iberia clusterSEK 4.8 bn
India & Southeast AsiaSEK 10.1 bn
India factories (Pune · Bengaluru · Haridwar)SEK 7.1 bn
Southeast Asia & Middle East distributionSEK 3.0 bn
Execution Hub · Action items

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