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• Order Intake: Increased by 2%, with organic growth also at 2%.

• Revenue: Increased by 1%, with organic growth at 1%.

• Adjusted EBITDA Margin: Improved by 1.5 percentage points to 19.7%.

• Adjusted Profit: 3.8 billion, up from 3.3 billion in the same period last year.

• Free Operating Cash Flow: 3.8 billion, slightly improved from the previous year.

• Mining Solutions Order Intake: Strong organic growth, 26% up in equipment.

• Net Financial Items: Decreased from 500 million to 300 million year over year.

• Net Debt: 40 billion, with financial net debt over EBITDA at 1.1%.

• Adjusted EPS: Improved to 3.016.

• Cash Conversion: 70% in the quarter, with a 12-month rolling basis at 93%.

• Regional Performance: Europe down 8%, North America up 4%, Asia up 9%, Australia up 12%, South America up 8%.

• Segment Performance: Mining strong, automotive down low double digits, aerospace up mid single digits in Europe.

• Warning! GuruFocus has detected 4 Warning Sign with SDVKF.

Release Date: April 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sandvik AB (SDVKF) reported a 2% increase in total order intake and a 1% increase in revenue, with organic growth contributing equally to these figures.

• The company achieved an improved adjusted EBITDA margin of 19.7%, up by 1.5 percentage points, driven by successful restructuring programs and cost savings.

• Strong performance in the mining sector, particularly in Australia and South America, with a 26% increase in equipment orders and double-digit growth in parts and services.

• Sandvik AB (SDVKF) launched several innovations, including an electric option for rotary drill rigs and a mobile electric cone crusher, enhancing its product portfolio.

• The company announced nine acquisitions in the quarter, strengthening its position in CAM and demolition and recycling equipment.

Negative Points

• The cutting tools and infrastructure segments were negatively impacted by the uncertain macroeconomic environment, with Europe and North America experiencing declines.

• The automotive segment saw a significant downturn, with low double-digit declines in Europe and North America.

• Despite a positive sentiment in aerospace, North America reported a mid-single-digit decline in order intake.

• The company faces potential risks from global tariffs and trade barriers, which could impact the overall economy and Sandvik AB (SDVKF)'s operations.

• Currency fluctuations had a negative impact on the company's financial performance, with a reported negative currency impact of 1% on orders and revenue.