AB SKF (publ) Q2 2025 Earnings | 07/18/2025

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AB SKF (publ) reported its Q2 2025 results on July 18, 2025, demonstrating continued margin resilience despite persistent headwinds in the global market and currency volatility. Net sales for the quarter totaled SEK 23,166 million, reflecting a slight decrease from SEK 25,606 million the prior year, with organic growth at -0.2%. The primary factor behind the revenue dip was softer demand in the automotive sector, whereas the industrial segment delivered robust performance, supporting group-level resilience. Adjusted operating profit for the quarter was SEK 3,090 million, with the adjusted operating margin improving to 13.3% from 13.0% a year ago—propelled by price/mix effects, proactive cost control, and commercial execution. Notably, the Industrial segment posted a margin of 16.6%, while the automotive segment margin stood at 5.1%, impacted by global market pressures except for ongoing growth in electric vehicles. Net profit for the quarter was SEK 583 million, compared to SEK 1,663 million in Q2 2024, with basic earnings per share at SEK 1.13 (vs. SEK 3.36) and adjusted earnings per share at SEK 5.06 (vs. SEK 5.19). Operating cash flow was a highlight, surging to SEK 2,817 million from SEK 2,152 million a year earlier, thanks to improved working capital management. During the quarter, SKF advanced its strategic rightsizing initiatives, announcing a workforce reduction of approximately 1,700 positions (mainly in Europe), expected to deliver annual savings of SEK 2 billion by 2027. The group also reported strong results in its aerospace division, which achieved 12% annual sales growth and an 8 percentage point margin improvement since 2022. CEO Commentary & Outlook: President and CEO Rickard Gustafson reiterated SKF’s commitment to portfolio optimization, commercial discipline, and cost efficiency, underpinning margin strength even in a challenging market environment. The company’s ongoing restructuring is set to reinforce long-term competitiveness and unlock future growth, particularly as the separation of the automotive business progresses and high-growth areas like industrial and aerospace are prioritized. Looking ahead, management continues to target margin expansion and portfolio quality, while monitoring the macro environment for signs of demand recovery, particularly in automotive. About Inside Ticker: For in-depth financial analysis, expert insights, and real-time updates on AB SKF (publ) and leading global industrial technology companies, follow Inside Ticker and visit InsideTicker.com for comprehensive reports and market perspectives. Hashtags: #SKF #Q22025 #Earnings #FinancialResults #Margins #Industrial #Automotive #NetSales #Profitability #OperatingMargin #CashFlow #CostControl #Rightsizing #Aerospace #StrategicUpdate #PortfolioOptimization #SEK #MarketUpdate #InsideTicker #GrowthStrategy #Resilience #BusinessUpdate #InvestorUpdate #Q2Results #Transformation #GlobalMarkets #CEOUpdate