The shareholder-value view — start → today → target, the re-rating that the Vertevo separation and a resilient aftermarket earn, plus the fortress balance sheet and the cost programs behind it.
Enterprise value has gone from SEK 110.6 bn at the start of the plan to SEK 130.7 bn today; SEK 54.3 bn remains to the SEK 185.0 bn target. The prize is the separation & re-rating — the Vertevo spin-off removes the conglomerate discount, so pushing aftermarket & services mix from 37% toward 40% and banking the SEK 2.1 bn of open cost programs re-rates the industrial pure-play toward the >17% margin, 20% ROCE case.
2 of 4 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 Mix 37.0% vs 40.0%
SEK 54.3 bn of enterprise value stands between today's SEK 130.7 bn and the SEK 185.0 bn target plan — the swing that compounds shareholder value through the separation.
SEK 2.1 bn of SEK 7.1 bn run-rate cost capture is still to bank — the rightsizing, regionalization and separation-offset programs that lift the industrial pure-play margin.
Rightsizing (~BSEK 2), World Class Manufacturing, regionalization & RecondOil circularity
Climbing toward the industrial pure-play tier is worth 2–3 EBITDA turns — on SEK 15.7 bn of adjusted EBITDA that is SEK 31.5 bn–SEK 47.2 bn from re-rating alone (Timken / Schaeffler-Industrial comps).
AB SKF runs a Value Creation Plan from start to target. Group net sales are SEK 91.6 bn; the prize from here is the separation & re-rating — spinning off Automotive (SKF Vertevo) removes the conglomerate discount, and the recurring aftermarket & services spine is valued at a premium. This is the screen that tracks it.
Each lever shown start → today → target, with progress through the plan.
| Workstream | Lever | Start | Today | Target | Progress | Status |
|---|---|---|---|---|---|---|
| Scale the industrial platform | Organic frame: market +1pp over cycle (excl. contract mfg) | SEK 98.7 bn | SEK 91.6 bn | SEK 95.0 bn | Behind | |
| Shift to resilient mix | Aftermarket, services & SIS expansion | 35% | 37% | 40% | On track | |
| Expand margin | Mix + rightsizing (~BSEK 2) + regionalization | 12.3% | 12.7% | 17% | On track | |
| Grow profit | Scale × margin (post-spin >17% frame) | SEK 16.3 bn | SEK 15.7 bn | SEK 18.5 bn | Behind | |
| Fortress balance sheet | 0.8× → post-spin optionality (bolt-ons / buyback / extra distribution) | 1× | 0.8× | 0.8× | On track | |
| Re-rate the multiple | Industrial pure-play re-rating — the Vertevo separation | 6.8× | 8.3× | 10× | On track |
Aftermarket mix and pure-play focus move the EBITDA multiple. At 37%, SKF maps to the aftermarket-led industrial tier, yet the blended group trades at 8.3× — the conglomerate discount the Vertevo separation removes.
Climbing toward the industrial pure-play tier is worth 2–3 EBITDA turns — on SEK 15.7 bn of adjusted EBITDA, that's SEK 31.5 bn–SEK 47.2 bn of enterprise value from re-rating alone.
Recurring aftermarket & services — industrial distribution, condition monitoring (@ptitude/IMx/Axios), lubrication and vehicle-aftermarket kits — commands a richer EV/revenue than cyclical OEM bearing sales, separate from and on top of the blended multiple.
So what: scaling recurring aftermarket, condition monitoring and services creates value at a premium multiple — well above the 8.3× the blended group trades at today. It's the resilience spine that re-rates the industrial pure-play.
The concrete programs behind the savings % — not a slogan, a checklist.
SKF's cost & efficiency playbook in action: rightsizing the European cost base (~BSEK 2), World Class Manufacturing, regionalization & footprint optimization, the separation stand-alone-cost offset, and RecondOil / remanufacturing circularity. SEK 2.1 bn of run-rate is still to bank — the same work behind the margin climb toward >17%.