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1. Company Snapshot

1.a. Company Description

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, rock processing, manufacturing and machining, and materials technology in Sweden and internationally.The company offers mining and rock solutions, including drill rigs, underground loaders and trucks, rock drills and other tools, and parts and services, as well as digital and sustainability solutions; and rock processing applications, which include crushing, screening, feeding, breaking, demolition, and recycling.It also provides manufacturing solutions, comprising traditional metal cutting under the Sandvik Coromant, Walter, Wolfram, Seco, and Dormer Pramet brands; and manufactures tools and tooling systems for advanced metal cutting.


In addition, the company develops and manufactures advanced stainless steels, powder-based alloys, and special alloys.It serves aerospace, automotive, construction, mining, general engineering, nuclear power generation, oil and gas, process, and renewable energy industries.The company was founded in 1862 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on SAND

Sandvik AB's recent performance was driven by a proposed dividend increase to SEK 6.00 per share, reflecting the company's resilience in Q4 2025. The interim report highlighted sales of SEK 32,461 million and net income of SEK 4,199 million, with basic earnings per share from continuing operations reaching SEK 3.35. Additionally, the company has secured large mining equipment orders and is executing ongoing initiatives, further solidifying its position in the market.

1.c. Company Highlights

2. Sandvik's Q4 2025 Earnings: A Strong Finish to the Year

Sandvik reported a robust fourth quarter 2025, with double-digit order intake and revenue growth. Revenue increased by 1% to SEK 32.5 billion, with an organic growth of 12%. The adjusted EBITA margin was 19.6%, corresponding to an adjusted EBITA of SEK 6.4 billion. Earnings per share (EPS) came in at 3.21, slightly below estimates of 3.23. The company's strong financial performance was driven by high demand in mining and infrastructure, with orders worth SEK 32.7 billion and a positive book-to-bill ratio of 101%.

Publication Date: Feb -02

📋 Highlights
  • Q4 Performance: Double-digit order intake (15% organic) and revenue growth (12% organic), with a strong book-to-bill ratio of 101% (SEK 32.7B orders vs SEK 32.5B revenue).
  • Adjusted EBITA Margin: Reached 19.6% (SEK 6.4B), with rolling 12-month margin at 19.3%, up from 19.2% in the prior year.
  • Mining Segment Strength: Organic order intake growth of 17% and a 21.5% EBITA margin, driven by brownfield projects and demand for copper and gold.
  • Geographic Growth: Asia surged 14%, Australia jumped 43%, and Europe grew 13%, reflecting robust mining activity in key regions.
  • 2025 Guidance: Expects 11% organic order intake growth and 5% revenue increase, with a margin target of 19.3% despite currency headwinds.

Segment-wise Performance

The Mining segment saw a 5% increase in order intake and 17% organic growth, with an adjusted EBITA margin of 21.5%. Rock Processing experienced a 9% decline in order intake but 0% organic growth. Intelligent Manufacturing and Machining saw mixed demand, with Aerospace and Defense showing strong growth. The company's cutting tools business grew 8% in revenue, driven by slight volume growth and surcharges related to tariffs.

Geographic Performance

Geographically, Europe grew by 13%, North America by 9%, and Asia by 14%. Mining markets in Africa and the Middle East grew by 5%, Australia by 43%, and South America by 13%. The company's strong performance was driven by robust demand in mining and infrastructure.

Guidance and Outlook

The company expects significant currency headwinds to continue into the first quarter but anticipates a strong financial performance in 2025, with organic order intake and revenues increasing by 11% and 5%, respectively, and a margin of 19.3%. CapEx is expected to be SEK 4-4.5 billion, with an interest net of SEK 0.6 billion. As Cecilia Felton noted, the margin corridor for mining is expected to be between 20-22%, with a normal leverage of around 30%.

Valuation

With a P/E Ratio of 30.03 and an EV/EBITDA of 16.52, the market seems to be pricing in a certain level of growth. The company's ROE is 16.12%, and ROIC is 11.34%, indicating a relatively healthy profitability. The Net Debt / EBITDA ratio is 1.24, suggesting a manageable debt level. Analysts estimate next year's revenue growth to be around 7.2%, which may be achievable given the company's strong order intake and revenue growth in 2025.

3. NewsRoom

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Underground Mining Equipment Industry Report 2025-2030: Sandvik, Epiroc and Caterpillar Dominate with 75% Market Share

Feb -18

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American Tungsten Initiates Drilling on Zero Level of IMA Mine, Second Drill Rig Now in Operation

Feb -18

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Sandvik Deepens Mining Solutions With Great Atlantic Deal And ThoroughTec Buy

Feb -17

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Atlas Salt, Sandvik expand collaboration for salt project in Canada

Feb -16

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Atlas Salt Broadens MOU With Sandvik Mining For Great Atlantic Salt Project

Feb -13

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Atlas Salt Expands Strategic MOU with Sandvik Mining Supporting $132 Million of Equipment and Services at Great Atlantic Salt Project

Feb -13

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Sandvik agrees to buy ThoroughTec Simulation in South Africa

Feb -13

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Assessing Sandvik (OM:SAND) Valuation After Strong Recent Share Price Momentum

Feb -12

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Sandvik Mining and Rock Solutions

Expected Growth: 3.5%

Sandvik Mining and Rock Solutions' growth is driven by increasing demand for mining equipment, expansion into new markets, and focus on digitalization and sustainability. The segment's 3.5% growth is also attributed to a strong order backlog, improved operational efficiency, and strategic acquisitions, positioning the company for long-term success in the mining industry.

Sandvik Rock Processing Solutions

Expected Growth: 4.2%

Sandvik Rock Processing Solutions' growth is driven by increasing demand for mining and construction equipment, expansion into new markets, and innovation in digitalization and automation technologies. The segment's 4.2% growth is also attributed to Sandvik AB's strategic acquisitions and strong customer relationships, enabling the company to capitalize on trends in sustainable and efficient processing solutions.

Sandvik Manufacturing and Machining Solutions

Expected Growth: 3.8%

Sandvik Manufacturing and Machining Solutions' 3.8% growth is driven by increasing demand for precision machining and advanced manufacturing technologies. The segment benefits from Sandvik's strong product portfolio, innovation capabilities, and expanding presence in key markets, particularly in Asia. Additionally, the company's focus on digitalization and sustainability supports growth in this segment.

Eliminations

Expected Growth: 0.0%

The eliminations from Sandvik AB (publ) with 0.0% growth indicate a stable and mature business segment. This suggests that there are no significant changes in the market or industry, and the company is maintaining its market share. The growth drivers are likely driven by steady demand, efficient operations, and effective cost management, resulting in a stable financial performance.

7. Detailed Products

Rock Drilling Tools

Sandvik's rock drilling tools are designed for drilling and blasting in mining, quarrying, and construction applications.

Metal-Cutting Tools

Sandvik's metal-cutting tools are designed for machining and cutting of metals in various industries.

Mining Systems

Sandvik's mining systems provide a range of solutions for underground and surface mining operations.

Materials Technology

Sandvik's materials technology provides advanced materials and manufacturing solutions.

Industrial Processes

Sandvik's industrial processes provide solutions for industrial heating, cooling, and processing applications.

Additive Manufacturing

Sandvik's additive manufacturing solutions provide 3D printing and rapid prototyping capabilities.

Digitalization and Automation

Sandvik's digitalization and automation solutions provide data analytics, automation, and IoT solutions.

8. Sandvik AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Sandvik AB (publ) operates in a niche market with specialized products, reducing the threat of substitutes. However, the company's products can be substituted with alternative materials or technologies, posing a moderate threat.

Bargaining Power Of Customers

Sandvik AB (publ) has a diverse customer base, reducing the bargaining power of individual customers. The company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Sandvik AB (publ) relies on a few critical suppliers for raw materials, giving them some bargaining power. However, the company's large scale of operations and diversified supply chain mitigate this risk.

Threat Of New Entrants

The capital-intensive nature of Sandvik AB (publ)'s business, combined with the need for specialized expertise and technology, creates a barrier to entry for new competitors.

Intensity Of Rivalry

The industrial equipment and tools market is highly competitive, with several established players competing for market share. Sandvik AB (publ) faces intense rivalry from companies like Atlas Copco and Epiroc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.94%
Debt Cost 5.02%
Equity Weight 64.06%
Equity Cost 10.55%
WACC 8.57%
Leverage 56.11%

11. Quality Control: Sandvik AB (publ) passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sandvik

A-Score: 5.7/10

Value: 2.6

Growth: 4.8

Quality: 6.9

Yield: 3.8

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Alfa Laval

A-Score: 5.3/10

Value: 2.4

Growth: 6.8

Quality: 6.6

Yield: 3.8

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Siemens

A-Score: 5.2/10

Value: 3.5

Growth: 5.0

Quality: 5.6

Yield: 5.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Schindler

A-Score: 5.2/10

Value: 0.8

Growth: 3.9

Quality: 7.4

Yield: 3.1

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
KONE

A-Score: 4.4/10

Value: 1.3

Growth: 3.3

Quality: 6.7

Yield: 5.6

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Eaton

A-Score: 4.2/10

Value: 1.3

Growth: 5.9

Quality: 7.3

Yield: 3.1

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

379.6$

Current Price

379.6$

Potential

-0.00%

Expected Cash-Flows