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The single financial pane of truth — P&L, quality of earnings, profitability, FP&A and segment & brand economics.

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

Margin is expanding, but ≈ SEK 3.9 bn of operating profit still sits between today's 12.7% margin and the 17% mid-term target — held in the lower-margin Automotive & SIS lines and opex. Convert mix shift and operating leverage into reported operating profit to re-rate the stock.

4 of 8 headline metrics improving vs prior · still off target: Organic Growth (H1 2026) 1.9% vs 4.0%, Gross Margin 26.8% vs 28.0%, Adjusted Operating Profit SEK 11.7 bn vs SEK 12.2 bn

Do now — ranked by urgency
  1. 1
    Close the margin gap to the 17% mid-term targetWatch
    Why it matters

    ≈ SEK 3.9 bn of operating profit stands between 12.7% margin and the 17% mid-term target — the swing that re-rates the listed equity.

    What's driving it
    • Adj. operating margin 12.7% vs 17% target
    • 3 of 9 brands below 80% savings capture
    FYI
    • Revenue SEK 91.6 bn; SG&A 14.1% of revenue
    • Each margin point ≈ SEK 916 M of operating profit
  2. 2
    IAC guidance BSEK −2.5 to −3.0 for 2026Watch
    Why it matters

    Keep separation spend inside the announced envelope; track footprint payback quarter by quarter.

    What's driving it
    • Items affecting comparability
    • Signal: Alert
    FYI

    Separation plus Americas footprint consolidation front-load costs (Q2 2026 IAC −1,004, roughly half separation / half footprint).

  3. 3
    DSO 65 vs 60 target — NWC 30.4% of salesWatch
    Why it matters

    Tighten OEM terms & collections; unwind the separation WC build in H2 2026.

    What's driving it
    • DSO
    • Signal: Alert
    FYI

    >60d AR ≈ MSEK 2,400; the separation working-capital build dented H1 2026 operating cash flow (Q1 −446).

  4. 4
    RecondOil & remanufacturing circularity — PlannedWatch
    Why it matters

    Unbanked margin until captured — rightsizing & footprint fund the >17% post-spin frame.

    What's driving it
    • SEK 120 M run-rate targeted
    • Signal: Savings program
    FYI
    • Circular offers scaling from pilot to plant-scale; supports the clean-growth pillar.
    • Owner: CFO
📈 Industrial growth & aftermarketStep 4 of 7 · the P&L & quality of earnings (adjusted vs reported)Enterprise 360Cash 360All journeys
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Net Sales
SEK 91.6 bn
▼ 7.2% vs priorTarget SEK 93.0 bn
Organic Growth (H1 2026)
1.9%
▲ 575.0% vs priorTarget 4.0%
Gross Margin
26.8%
▼ 3.2% vs priorTarget 28.0%
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
Aftermarket & Services Mix
37.0%
▲ 5.7% vs priorTarget 40.0%
Net Cash Flow After Investments
SEK 6.9 bn
▲ 32.8% vs priorTarget SEK 7.0 bn
Exhibit 1

P&L bridge — revenue to operating profit

How SEK 91.6 bn of revenue converts to SEK 11.7 bn adjusted operating profit.

Exhibit 2

P&L at a glance

RevenueSEK 91.6 bn100.0%
Cost of goods sold(SEK 67.0 bn)(73.2%)
Gross profitSEK 24.5 bn26.8%
SG&A(SEK 12.9 bn)(14.1%)
Adjusted operating profitSEK 11.7 bn12.7%
Exhibit 3

Revenue & operating profit

Exhibit 4

Revenue by division

Bearing Solutions54%
Automotive (SKF Vertevo)26%
Specialized Industrial Solutions (SIS)21%
Exhibit 5

Reported → Adjusted operating profit

Diligence-grade add-back walk — IAC −3,918 (rightsizing · separation · impairments · less divestment gains).

Exhibit 6

Adj. operating profit — FY24 → FY25

Currency translation (SEK strength, −6.6%) vs. organic volume, price & mix vs. cost programs & lower material costs vs. divested businesses.

Exhibit 7

Adj. operating margin by division

Exhibit 8

Revenue by end-market

Planning

FP&A & productivity

Forecast discipline, cost & sustainability savings, and productivity.

Budget Variance
-0.8%
▲ 61.9% vs priorTarget 0.0%
Forecast Accuracy
93.0%
▲ 3.3% vs priorTarget 95.0%
Program Realization (rightsizing & WCM)
70.0%
▲ 27.3% vs priorTarget 100.0%
Revenue / Employee
SEK 2,457 K
▼ 3.6% vs priorTarget SEK 2,600 K
Opex % of Revenue (S&A incl. R&D)
14.1%
▼ 8.4% vs priorTarget 13.0%
Employees (registered)
37,271
▼ 3.8% vs priorTarget 37,000
Exhibit 9

Brand performance

Operating-profit uplift and savings capture by brand as each engine scaled.

BrandScaledRevenueValue-addedOp. profit MSEKSavings captureStatus
SKF1907SEK 65.6 bnSEK 24.9 bn81059690%Integrated
PEER2008SEK 900 MSEK 150 M1012085%Integrated
Lincoln2010SEK 2.5 bnSEK 1.2 bn1445095%Integrated
Alemite2010SEK 600 MSEK 300 M129092%Integrated
Kaydon2013SEK 2.2 bnSEK 500 M1638088%Integrated
@ptitude / IMx / Axios (condition monitoring)2015SEK 2.9 bnSEK 2.9 bn1861080%In progress
RecondOil2018SEK 150 MSEK 120 M51555%In progress
Cooper (split-roller)2020SEK 450 MSEK 160 M158070%In progress
SKF Vertevo2026SEK 23.6 bnSEK 8.6 bn489660%In progress