President and CEO, Sandvik
Q4 results & electrification breakthroughs | Studio Sandvik Ep15 (2025)
This episode dives into the Q4 and full-year 2025 report with CEO Stefan Widing, the launch of the fully electric mobile crushing plant in South Africa, and major equipment orders in Australia and Canada.
We also take a closer look at the new Inspiration Through Innovation concept from Seco, designed to advance collaborative solutions for customers in medical, aerospace, automotive and general engineering segments.
In the studio, Metrologic introduces Metrolog Copilot, an AI-powered assistant supporting users with instant guidance across its software suite.
Additional highlights include San...
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 (24 segments)
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Host0:09
Hello and welcome to Studio Sandvik. These are our headlines for today: the first fully electric mobile crushing plant launched in Africa; Stefan Steenstrup explains the Inspiration through Innovation concept from Seco; and of course, Stefan Widing will go through the main news of the day, our Q4 and full-year report of 2025. We will start with the latest telegrams from the world of Sandvik. First out from Mining, where Sandvik has received a major underground mining equipment order from Northern Star Resources, one of Australia's leading gold producers. The order consists of underground trucks and loaders, with deliveries expected to begin in the first quarter of 2026 and continue throughout the year. It is valued at approximately 260 million SEK. Sandvik Rock Processing has introduced its first fully electric mobile crushing plant on the African market. Together with distributor S&R Enterprises, it has been built in South Africa using the UJ443E heavy jaw unit. The plant is built on a fully electric track platform and offers lower operating costs, reduced emissions, and sound aftersales support. There has been significant interest in the unit as the mining, quarrying, and construction sectors seek to move towards lower carbon and more cost-effective operations. It's time for one of the highlights of the day: our report for the fourth quarter and full-year 2025. Let's listen to Stefan Widing.
Hi, Stefan. We start with safety, as always in Sandvik. How did the safety development progress during Q4?
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Stefan Widing2:04
We had a very good development in the quarter. We had a Total Recordable Injury Frequency Rate at 2.3, which represents a very good improvement versus the same period last year. And also Lost Time Injury Frequency Rate which ended up at 0.9, represented a very good improvement versus last year. And in fact, both of them are at all-time lows. I think it's very good work with safety during the full year and it ended on a high note in the quarter.
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Host2:42
And the Q4 report was published today, indeed a very strong ending to the year. How would you summarize the quarter?
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Stefan Widing2:48
Of course we are very happy with the strong top-line development, with double-digit organic growth in both orders and revenues. We continue to see strong demand in the Mining business. Of course also this quarter we are particularly happy that we also see double-digit revenue growth, which is an indication that we are ramping up to meet the strong demand. We also see a good development in the Machining business, with good order intake and revenues, driven by strong price execution. But also, good growth in our focused growth segments, such as aerospace and defense. Also good development on the powder side. Then we also continue to see very good growth in our software businesses. Intelligent Manufacturing is growing double digits, as is our Digital Mining Technologies. So overall a very strong development. If we look further down into the P&L, we also see a good operating margin: 19.6 percent, slightly higher than last year, despite a significant currency headwind of almost 1.2 billion. We also see a very strong cash flow, 6.7 billion, corresponding to a cash conversion of 110 percent in the quarter. So I'm very happy with the financials, and then, of course, we continue to make strategic progress in many areas.
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Host4:17
On that note, very good progress also in key strategic areas. What are a few highlights here?
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Stefan Widing4:26
We are very happy with the progress we made in the entire strategy period, as well as in 2025, and also now in the fourth quarter. We see this in the high pace of launching new innovations, as well as strategic acquisitions. Some highlights that we can show are the continued progress we are making in Intelligent Manufacturing, when it comes to strengthening our market positions in the software business. We see it in the high ratio of new sales of new innovations that we have in the Machining business. We see it in the strong growth we have in the surface business, which is also to a large extent driven by new product launches. And we also see it in, for example, focused geographies in growth areas in Machining, where we have had good growth in India for many years. This year we also see very good growth in China, which is to a large extent driven by an acquisition that we did in 2024. So many of these actions are yielding results when it comes to growth.
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Host5:47
2025 is also the last year of a strategy period, and now Sandvik enters a new one. Any final words on that?
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Stefan Widing5:50
This period, which has basically been the past five years up until the end of 2025, is of course a period with very challenging geopolitical and macro-economic challenges and changes. We've had the war in Ukraine, we've had supply chain, inflation, tariffs, many things to manage. Despite this, we have delivered good financial results every quarter. And on top of that, driven a significant strategic transformation of the Group, building a stronger Sandvik. This is a platform that we will now continue to build on with our financial strength, our leading market positions, and a strong culture, a winning high-performing culture in the organization. Now when we go into the next period, 'Advancing to 2030,' we will continue to build on the strengths that we have. This has of course been possible thanks to the whole Sandvik organization and the commitment, high energy, hard work that everyone has put in during these past five years. It's also an opportunity to say thank you to the whole organization for making this happen.
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Host7:13
Indeed. Thank you, Stefan.
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Stefan Widing7:14
Thank you.
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Host7:19
Sandvik China division has secured prestigious awards. At the grand '2025 Top Employer in Suzhou' awards ceremony, held by Suzhou Broadcasting and Television Station in September, Ahno secured both the 'First Prize' and the 'Most Industry-Influential' awards. In a comment, Elisabeth Lindström Dupuy, Head of China Division, says that Ahno Group's achievement of two major awards fully demonstrates long-term commitment and outstanding achievements in employer branding, talent development, and corporate culture. Seco has created a new series of events: Inspiration through Innovation.
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Stefan Steenstrup7:59
It is hosted by Seco and our technical partners and is a series of global and local events. The ITI event is where we imagine what the future of manufacturing will look like, and that future of manufacturing is something here in Seco where we think about the whole value chain, with end-to-end solutions to the customers. To be able to do end-to-end solutions from design to verification and cleaning, we need to work together with partners in our field. Those partners come together here at the ITI, so it's a unique ambience for our customers to visit the ITI event and be able to look at the whole value chain from end to end.
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Host8:42
AI is being integrated into many of our offerings. One of these is Metrolog Copilot, an AI-based assistant offering instant guidance for all users of its software suite. With us today we have Vincent Doux, project manager of Metrologic. Welcome to Studio Sandvik, Vincent!
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Vincent Doux9:01
Thank you.
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Host9:03
Can you please explain the solution?
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Vincent Doux9:06
Sure. Metrolog Copilot is a web-based chatbot assistant, available to all end users through the Metrologic portal. It provides answers about any Metrologic product and communication and supports users in using our 3D inspection software. Running on an LLM model, also on Azure and OpenAI-powered technology, Metrolog Copilot has an intelligent search engine. It understands natural languages, questions, and delivers precise, constructive guidance. It is part of our broader Manufacturing Copilot AI for Manufacturing strategy.
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Host9:50
Very interesting! How unique is this on the market?
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Vincent Doux9:56
Metrolog Copilot is kind of unique, because it is the only assistant that is fully dedicated to 3D metrology. It has been trained exclusively on Metrologic official documentation and knowledge base, for more accurate and domain-specific answers. It is instantly available throughout the extranet, with no installation, included in the maintenance contracts. It gives our customers a competitive edge: faster problem solving, reduced downtime, and higher productivity.
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Host10:27
What is the potential for the solution?
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Vincent Doux10:31
The potential of Metrolog Copilot is to evolve from a knowledge assistant into a true agentic embedded directly in metrology workflows. Its next evolution is to activate generative AI metrology data, automatic inspection plans, preconfigured measurement programs, and GD&T interpretation, aligned with Metrologic's full solutions. With a future integration of Copilot directly embedded in Metrolog software, the assistant will be able to guide, automate, and accelerate directly within the software interface. This will reduce programming times, standardize inspection strategy, and eliminate repetitive manual tasks. The future is agentic.
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Host11:14
Very interesting, Vincent, thanks for joining Studio Sandvik! In Sudbury in Canada, Sandvik has broken ground for a new state-of-the-art facility to serve the Canadian market and its customers. The new Sudbury facility has been designed to meet increasing customer demand for maintenance, electrification, efficient service turnaround, and capacity for long-term growth. More from Canada: Eldorado Gold Corporation, a gold and base metals producer, has selected Sandvik to supply 10 battery-electric vehicles, plus 10 charging systems, for its Lamaque complex in Val-d'Or, Québec. The order includes five Sandvik TH550B trucks and five Toro LH518iB loaders. Now to India, where Studio Sandvik had the opportunity of spending one minute with Abhijeet Choure, Head of Demand Marketing at Sandvik Coromant.
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Abhijeet Choure12:20
Trekking has taught me the importance of setting bigger goals and staying disciplined in how I work towards the end. Perseverance, preparation, and teamwork are so important on the mountain and keeping the spirit high, even when things get tough. I carry this into my professional life at Sandvik Coromant in Pune, India. I am head of Demand Marketing; it's a dynamic role that blends strategy, creativity, and close collaboration. I love turning insights into campaigns that truly make a difference for our customers and our business. It is the spirit of teamwork and continuous learning at Sandvik that inspires me every day, and a work-life balance that is often hard to come by. My name is Abhijeet Choure, and I am proud to be part of Sandvik.
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Host13:09
And that was all for today. Thank you for watching, and we hope to see you again in March. Thank you for today, bye!