President and CEO, Sandvik
Q1 report and growth across mining and machining | Studio Sandvik Ep17 (2026)
In the latest episode of Studio Sandvik, President and CEO Stefan Widing reflects on the first quarter 2026 report and what it signals ahead.
The episode features major underground mining orders in Australia, Namibia and Colombia, a new acquisition that strengthens ultraprecision machining for optics, aerospace and medical, plus innovation and digital highlights from across the group. We also look at how Remote Monitoring Services help customers improve performance.
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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 (14 segments)
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Host0:09
Hello and welcome to Studio Sandvik. These are our headlines: our most recent acquisition opens a new segment of the machining market, remote monitoring services provide more efficient environments for our customers, new underground mining orders in Colombia, and Stefan Widing will comment on the Q1 report. We start with a strategically important order from Barminco, the world's largest underground mining contractor. The deal consists of five AutoMine orders including Multi-Lite systems for mine sites in Australia and Namibia. With these orders, the majority of Barminco's global operations will now run AutoMine for loading. Sandvik has also acquired 80% of Canada-based K&Y Diamonds, a leading manufacturer of diamond tools for ultra-precision applications, particularly in optics for spectacle lenses, contact lenses, and optical components, as well as aerospace and medical. K&Y Diamonds will be reported into Sandvik Coromant. Additionally, Sandvik has received a large order from Ares Mining for underground mining equipment to support the expansion of its Marmato operation in Colombia, including loaders, trucks, drilling rigs, and a maintenance services contract. Now we visit northern Sweden, where Sandvik Rock Processing has helped Björkdal Mine reach its fullest potential using remote monitoring services.
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Unknown2:30
Sandvik has already piloted early digital connectivity for equipment. Digital tools are helping improve control and efficiency. We gained insights from the crushers themselves. Digitalization is the future of mining. We can use data from the crushers, for example to simplify processes, improve energy efficiency, and support sustainability goals. It also enables better communication between functions at the customer and Sandvik. We can extract and visualize data in real time, including through the mobile app. This enables efficient solutions with the help of Sandvik's monitoring service.
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Host3:47
Now it's time to move on to one of the biggest news of today: our report for the first quarter 2026. Let's listen to our president and CEO, Stefan Widing. Welcome, Stefan. Safety first, as always at Sandvik. Could you walk us through the progress in the quarter?
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Stefan Widing4:12
Yes, if we look at our KPIs, we had good progress in the quarter. Our total recordables improved by 12% to 2.5, and our lost time improved by 15% to 1.0. So here we see good progress. Unfortunately, this was fully overshadowed by the fact that we had two fatalities in our mining business in the quarter. This is still being investigated by the authorities — what happened and why — so I cannot comment further on the details. But our thoughts are of course with the families and friends of those impacted. This is also a tragic reminder of why safety is always so important for us and why we always have to put it first. Our workplaces, our procedures, and our behaviors need to reflect the culture we want to have and reflect our vision of zero harm in the workplace.
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Host5:10
Indeed. On the order intake, very strong organic order intake — double digits across all business areas. Could you walk us through that?
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Stefan Widing5:19
Yeah, it was an exceptional start of the year. We continue to see very good momentum in the mining business — equipment orders up over 40%, aftermarket up in the double digits. In rock processing, we continue to see a recovery in infrastructure in both the US and in Europe, and strong demand in demolition, recycling, and aggregates. In intelligent manufacturing, which we report as a separate business area for the first time this quarter, we also continue to see good demand with 11% organic growth on both orders and revenues. And then of course we have machining, with an exceptional 28% growth on organic order intake.
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Host6:09
Okay, let's stay on machining. 28% is indeed a strong number. Can you break it down for us?
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Stefan Widing6:18
Yeah, there are several dynamics behind that. If we start with the underlying demand picture, we are seeing early indications of improved demand on the cutting tool side, which is very good to see. We also see strong demand in strategic growth areas such as aerospace, defense, and medical, which is also very positive. We also have good price realization adding to that. But then of course we have surging tungsten prices, which is coming on top of all of this. That is driving actually a more than double order intake in our powder business. And this also contributes to our cutting tool business because customers are seeing price increases and expecting more to come, so there is also a bit of a pre-order effect on the cutting tool side. So if we add these up, the 18% we have in cutting tools is driven by a bit stronger underlying demand, price effects, and pre-buying — all of those combined.
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Host7:27
In conclusion, is there anything else you would like to highlight from the first quarter?
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Stefan Widing7:34
I think we must also highlight the operating margin, which came in at 20%, which means it's within our target interval. This is a very good achievement considering major currency headwinds as well as weaker seasonality that we always have in the first quarter. And then of course also the strategic execution, especially in terms of growing our digital business. I mentioned already intelligent manufacturing, but if we look at all our digital businesses including in mining, we also see strong double-digit growth. So very good progress there as well.
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Host8:11
Indeed, a strong start to the year. Thank you, Stefan. In March, Tech Days 2026 took place at the Sandvik Coromant Center in Renningen, Germany, welcoming close to 500 visitors mainly from Germany and Switzerland. For three days, the event focused on technological exchange, connected manufacturing processes, and the manufacturing value chain. The discussions confirmed that many customers are ready to move toward data-driven decision-making and more sustainable production systems. The event also strengthened cross-functional collaboration across Sandvik divisions — for example, visitors learned about the material story behind machining solutions, with Wolfram presenting how tungsten is sourced. Moving on to My Sandvik Geo from business area Mining — it's an advanced cloud-based digital service that transforms drilling data into actionable geological and geotechnical insights, announced at ConExpo in Las Vegas in March. Let's have a closer look.
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Unknown9:42
My Sandvik Geo is a visualization and data collection system that takes the data coming off a rock drill at plan level and at site level. We are creating a full digital twin. You can see every part of the rock, what's happening underground, how well they've been drilled, whether they've been on target in terms of their length, depth, and angle, and whether that plan has produced the results that you intended. It's a really good way to get full insight.
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Host11:11
Sandvik has unveiled its next-generation automated development drill rig, the DD423i, which achieved over 95% machine availability in field testing in Boliden, Sweden. It raises the bar for productivity, intelligence, and reliability in underground development drilling. The new rig features a redesigned cabin with 55% increased visibility, lower noise levels, improved dust control, and full compatibility with Sandvik digital mining solutions. The industries where Sandvik operates continue to face a skills gap alongside a clear need for broader perspectives and more diverse talents. The Introduce a Girl to Engineering initiative, recently arranged at Sandvik Coromant sites in Pune, India and Sandviken, Sweden, helps young people see engineering as a field where they can belong, contribute, and grow. Participants met engineers, explored machining technology, and took part in practical challenges designed to test their creativity and problem-solving skills. Such a nice initiative, and it seems they had a lot of fun. And that was all for today. Thank you for watching, and see you in the next episode of Studio Sandvik. See you. Bye-bye.
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Unknown13:09
Bye.