President and CEO, Sandvik
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About Stefan Widing
Stefan Widing, President and CEO of Sandvik, reported record financial results for the second quarter of 2026, describing the period as "a very strong quarter with record revenues and profits." He noted that total order intake grew 17% organically, total revenues increased 23% organically, and adjusted EBITA rose to 8.3 billion Swedish kronor, up from 5.6 billion in the prior year, corresponding to a margin of 22.6%. Widing attributed the performance to strong momentum across key regions and segments, good price realization, and a "superstrong quarter" for mining, where order intake exceeded 20 billion kronor for the first time in a single quarter. He also highlighted that the cutting tools business grew 20%, with an estimated 7% pre-buy effect from customers anticipating further price increases, and that aftermarket parts and services continued to grow at a "very high level." Widing commented on the broader economic environment, stating that while political and macroeconomic uncertainty persists, the trends Sandvik observes are "underlying positive" and "cautiously positive," with a "slight improvement in the business cycle" driven by general industry, aerospace, defense, and energy. He also discussed Sandvik's strategic expansion into filtration and dewatering solutions for the mining industry through the acquisition of Diemme Filtration, describing it as a move into "a very attractive end-customer niche that grows 15% with good aftermarket and high margins." Widing said the company has a stated strategy of growing in attractive niches downstream in mining and would continue to pursue similar acquisitions.
Transcript (52 segments)
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Interviewer0:00
Warm welcome to Stefan Widing, Mikael Staffas, and Ad Ratchepp.
Welcome, welcome, welcome. Let's sit down again in these incredibly low chairs.
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Mikael Staffas0:24
They are very low.
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Interviewer0:25
Very low. I'll have to stretch my legs once. So, considering what we've heard this morning from a general perspective, what do you say about what's happening in the world, Stefan?
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Stefan Widing0:39
Well, it's a more turbulent world. I've been in this job for six years, starting with the pandemic, so it's been turbulent for a while. Maybe it has accelerated recently. But it's important not to get caught up in daily news; look at the long-term trends and act accordingly.
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Interviewer1:13
Mm.
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Mikael Staffas1:15
I've been in steel for 42 years and never seen this. It's very turbulent, but we're flexible and adapting. We've niched in steel, so we're doing relatively well, but it's a tough time.
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Interviewer1:45
What do you say, Mikael, about all the doom and gloom? What do you think as a person?
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Mikael Staffas1:55
The world has changed many times. I'm not too negative. Humanity will survive. I worked in the Soviet Union when it collapsed; it was tough but then improved. We've had many crises. We'll manage, but the world will look different.
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Interviewer2:38
Sandvik is a huge global company. How do you navigate tariffs and supply chain disruptions while benefiting from commodity market turbulence?
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Stefan Widing3:08
We focus on long-term trends like regionalization. We have a non-Chinese tungsten supply chain from a mine in Austria, which now gives us a competitive advantage. You need strategic in-house capabilities, not just just-in-time outsourcing.
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Interviewer4:05
Where is that mine?
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Stefan Widing4:07
Austria.
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Interviewer4:07
In Austria.
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Stefan Widing4:08
This shows that in uncertain times, you sometimes need to invest in insurance solutions for resilience.
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Interviewer4:29
You mentioned higher demands for flexibility. Elaborate.
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Stefan Widing4:37
The pandemic taught us to make big changes overnight. With tariffs, we had IT systems ready. You need scenario planning but shouldn't react to every short-term statement.
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Interviewer5:21
In its stomach strategy.
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Stefan Widing5:23
Exactly.
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Interviewer5:23
Yes.
You're also a global company, owned by Nippon Steel. Do you agree with Stefan on how to handle this?
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Mikael Staffas5:45
We're independent. Our strategy is to produce close to customers, so tariffs actually benefit us short-term. Long-term, tariffs are bad because they reduce consumption. But we're local, so we're less affected.
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Interviewer6:51
Sandvik has operations in over 150 countries. Have you been to all of them?
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Stefan Widing7:01
Yes, we have.
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Interviewer7:04
That wasn't a question. You're Europe's largest mining company. Metal prices are high, and billions are pouring in. What have you done right?
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Mikael Staffas7:33
My chairman taught me not to get depressed in bad times or get hubris in good times. We're in a capital-intensive industry with long cycles. We kept our gold and silver exposure, which is paying off now. It's about sticking to a long-term strategy and not being swayed by short-term criticism.
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Interviewer10:21
You acquired two mines last year. What will you do with the incoming billions?
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Mikael Staffas10:31
Pay down debt and look for organic growth. The world will need more base metals, and Europe is undersupplied, so we'll grow our operations there.
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Interviewer11:15
How does the shift from free trade to bilateral agreements affect you?
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Stefan Widing11:40
Lower tariffs are always good. The EU-India deal is very important for us; we've been in India since the 1950s and export globally from there. It allows us to utilize our production more efficiently.
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Interviewer12:26
Can you be more concrete? What does the signed agreement mean in practice?
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Stefan Widing12:36
It's about where we produce and export cost-effectively. More production within larger trade areas makes us more competitive.
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Interviewer12:58
Boliden is a major EU mining company. How do you see your role in increasing domestic production of critical raw materials?
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Mikael Staffas13:20
Our role is to do our best for shareholders and employees. Given our dominance, we'll have a role, but the EU's bureaucracy often undermines its own goals. They need a consistent grand plan.
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Interviewer14:31
I've heard you say Sweden ruined its best asset: cheap electricity.
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Mikael Staffas14:31
Cheap electricity. Sweden had stable, low prices, but now we're dependent on German prices. Politicians talk but don't increase supply. This is a lost competitive advantage.
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Interviewer15:55
Regulatory simplification is high on your wish list. Which area is most urgent?
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Mikael Staffas16:12
We can handle regulations, but our customers and the European economy suffer. The EU creates barriers instead of a single market. Europe's lack of growth is our own fault, not Trump's or China's.
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Interviewer17:02
How present are civil defense and preparedness issues in your companies?
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Mikael Staffas17:43
Too little. Finland has maintained total defense thinking; Sweden dismantled it. The authorities are struggling to structure cooperation. There's no clear answer on what's expected of us.
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Interviewer20:02
Do you agree, Mikael? Sandvik has resources that could help beyond drill rigs.
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Stefan Widing20:13
Yes, we have a big presence in Finland, where authorities know what they want. In Sweden, it's lacking. We're working on it, but there are few clear counterparts.
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Interviewer21:04
The climate issue has been deprioritized. How does that affect your priorities?
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Mikael Staffas21:57
We see it. Car companies have backed off electrification. We like combustion engines but are making them cleaner. Our own goal is to be completely climate-friendly. But industry is moving slowly; green steel deals are tiny fractions of volume. Ambitions and reality differ.
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Interviewer23:27
Mikael Staffas, where is the world heading?
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Mikael Staffas23:46
Forward. Metals will always be needed.
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Interviewer23:57
Stefan Widing, where is the world heading?
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Stefan Widing24:00
I'm optimistic. Long-term trends are positive. Poverty is decreasing. We've had exceptional decades, but even now is not worse than many before. It will get better.
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Interviewer24:47
Ad Rip, where is the world heading?
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Ad Ratchepp24:50
I'm also optimistic. Common sense always wins. The world will become a better place.
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Interviewer25:05
Great. In that positive spirit, we wrap up. Big thank you to you.
A
Ad Ratchepp25:10
Thank you very much.