SKF Q1 2025: Strong margin in turbulent markets
SKF (SKFRY) reported Q1 2025 results with net sales of MSEK 23,966, showing a -3.5% organic decline due to lower market demand across regions and industries, except for aerospace. The adjusted operating margin improved slightly to 13.5% (from 13.4%), with Industrial at 16.9% and Automotive at 5.2%.
The company maintained margin resilience through pricing actions, portfolio management, and cost control, despite weak demand. Net cash flow from operating activities decreased to MSEK 977 from MSEK 1,781. The separation of the Automotive business continues with 16 factories finalized, though complexity may extend the timeline.
For Q2 2025 outlook, SKF expects continued volatility and weakening organic sales year-over-year, with a negative currency impact of approximately MSEK 400 on operating profit.
SKF (SKFRY) ha riportato i risultati del primo trimestre 2025 con vendite nette pari a 23.966 MSEK, registrando un calo organico del -3,5% a causa della minore domanda di mercato in tutte le regioni e settori, ad eccezione dell'aerospaziale. Il margine operativo rettificato è migliorato leggermente al 13,5% (dal 13,4%), con il settore Industriale al 16,9% e l'Automotive al 5,2%.
L'azienda ha mantenuto la resilienza del margine grazie ad azioni sui prezzi, gestione del portafoglio e controllo dei costi, nonostante la domanda debole. Il flusso di cassa netto dalle attività operative è diminuito a 977 MSEK da 1.781 MSEK. La separazione del business Automotive prosegue con 16 stabilimenti completati, anche se la complessità potrebbe allungare i tempi.
Per le previsioni del secondo trimestre 2025, SKF prevede una continua volatilità e un indebolimento delle vendite organiche anno su anno, con un impatto valutario negativo di circa 400 MSEK sull'utile operativo.
SKF (SKFRY) reportó los resultados del primer trimestre de 2025 con ventas netas de 23.966 MSEK, mostrando una caída orgánica del -3,5% debido a una menor demanda del mercado en todas las regiones e industrias, excepto en aeroespacial. El margen operativo ajustado mejoró ligeramente hasta el 13,5% (desde el 13,4%), con el sector Industrial en 16,9% y el Automotriz en 5,2%.
La compañía mantuvo la resiliencia del margen mediante acciones de precios, gestión de cartera y control de costos, a pesar de la débil demanda. El flujo de caja neto de las actividades operativas disminuyó a 977 MSEK desde 1.781 MSEK. La separación del negocio Automotriz continúa con 16 fábricas finalizadas, aunque la complejidad podría extender los plazos.
Para las perspectivas del segundo trimestre de 2025, SKF espera una volatilidad continua y una disminución de las ventas orgánicas interanuales, con un impacto cambiario negativo de aproximadamente 400 MSEK en el beneficio operativo.
SKF (SKFRY)는 2025년 1분기 실적을 발표하며 순매출 23,966 MSEK를 기록했으며, 항공우주 산업을 제외한 전 지역과 산업에서 수요 감소로 인해 -3.5%의 유기적 감소를 보였습니다. 조정 영업이익률은 13.4%에서 소폭 상승한 13.5%를 기록했으며, 산업 부문은 16.9%, 자동차 부문은 5.2%였습니다.
회사는 약한 수요에도 불구하고 가격 조정, 포트폴리오 관리, 비용 통제를 통해 이익률 회복력을 유지했습니다. 영업활동으로 인한 순현금흐름은 1,781 MSEK에서 977 MSEK로 감소했습니다. 자동차 사업 분리는 16개 공장이 완료되었으나, 복잡성으로 인해 일정이 지연될 수 있습니다.
2025년 2분기 전망에서 SKF는 변동성이 지속되고 전년 대비 유기적 매출이 약화될 것으로 예상하며, 환율 영향으로 영업이익에 약 400 MSEK의 부정적 영향이 있을 것으로 전망합니다.
SKF (SKFRY) a publié ses résultats du premier trimestre 2025 avec un chiffre d'affaires net de 23 966 MSEK, enregistrant une baisse organique de -3,5% en raison d'une demande plus faible sur les marchés dans toutes les régions et industries, à l'exception de l'aérospatiale. La marge opérationnelle ajustée s'est légèrement améliorée à 13,5% (contre 13,4%), avec le secteur industriel à 16,9% et l'automobile à 5,2%.
L'entreprise a maintenu la résilience de sa marge grâce à des actions tarifaires, une gestion du portefeuille et un contrôle des coûts, malgré une demande faible. Les flux de trésorerie nets provenant des activités opérationnelles ont diminué à 977 MSEK contre 1 781 MSEK. La séparation de l'activité automobile se poursuit avec 16 usines finalisées, bien que la complexité puisse prolonger les délais.
Pour les prévisions du deuxième trimestre 2025, SKF s'attend à une volatilité continue et à un affaiblissement des ventes organiques d'une année sur l'autre, avec un impact négatif des changes d'environ 400 MSEK sur le résultat opérationnel.
SKF (SKFRY) meldete die Ergebnisse für das erste Quartal 2025 mit Nettoumsätzen von 23.966 MSEK und verzeichnete einen organischen Rückgang von -3,5% aufgrund der geringeren Marktnachfrage in allen Regionen und Branchen außer der Luft- und Raumfahrt. Die bereinigte operative Marge verbesserte sich leicht auf 13,5% (von 13,4%), wobei der Industriesektor bei 16,9% und der Automobilsektor bei 5,2% lag.
Das Unternehmen hielt die Margenresilienz durch Preisanpassungen, Portfoliomanagement und Kostenkontrolle trotz schwacher Nachfrage aufrecht. Der Nettocashflow aus operativer Tätigkeit sank von 1.781 MSEK auf 977 MSEK. Die Abspaltung des Automobilgeschäfts schreitet voran, 16 Fabriken sind abgeschlossen, wobei die Komplexität den Zeitplan verlängern könnte.
Für den Ausblick auf das zweite Quartal 2025 erwartet SKF weiterhin Volatilität und einen organischen Umsatzrückgang im Jahresvergleich, mit einem negativen Währungseinfluss von etwa 400 MSEK auf das Betriebsergebnis.
- Adjusted operating margin improved to 13.5% from 13.4%
- Industrial segment margin increased to 16.9%
- Effective execution of pricing and cost reduction initiatives
- China and Northeast Asia posted first positive organic growth in seven quarters
- Organic sales declined 3.5% year-over-year
- Net cash flow decreased to MSEK 977 from MSEK 1,781
- Automotive margin declined to 5.2% from 6.0%
- 8% automotive margin target delayed beyond 2025
- Q2 2025 expected to show weakening organic sales
Q1 2025
- Net sales: MSEK 23,966 (24,699)
- Organic growth: −
3.5% (−7.0% ), driven by lower market demand across regions and industries, except for aerospace showing continuous growth. - Adjusted operating profit: MSEK 3,233 (3,303). Continued strong price/mix contribution, driven by pricing actions and active portfolio management, as well as good cost control which largely offset the lower volumes.
- Adjusted operating margin:
13.5% (13.4% ) with Industrial at16.9% (16.4% ) and Automotive at5.2% (6.0% ). - Net cash flow from operating activities: MSEK 977 (1,781).
Financial overview, MSEK unless otherwise stated | Q1 2025 | Q1 2024 |
Net sales | 23,966 | 24,699 |
Organic growth, % | −3.5 | −7.0 |
Adjusted operating profit | 3,233 | 3,303 |
Adjusted operating margin, % | 13.5 | 13.4 |
Operating profit | 2,885 | 2,993 |
Operating margin, % | 12.0 | 12.1 |
Adjusted net profit | 2,296 | 2,312 |
Net profit | 1,948 | 2,002 |
Net cash flow from operating activities | 977 | 1,781 |
Basic earnings per share | 3.95 | 4.15 |
Adjusted earnings per share | 4.71 | 4.83 |
Rickard Gustafson, President and CEO:
"In a volatile environment, I'm pleased that we maintained our resilient performance and improved our adjusted operating margin year-over-year. We continue to execute our strategy including the creation of two independent and fit for purpose businesses and thereby creating strong foundations for the future.
Margin resilience despite continued weak demand
In the first quarter we saw continued weak demand resulting in an organic sales decline of −
The adjusted operating margin was strong at
The adjusted operating margin for our Industrial business increased to
Cash flow was not satisfactory at close to BSEK 1, mainly driven by increased working capital, including high accounts receivables generated by a strong quarter end, and negative currency effects.
Creating two fit for purpose businesses
The separation of the Automotive business continues at high pace, where the operating model and organizational design now have been concluded. Automotive's global manufacturing footprint has also been finalized with 16 factories. The overall separation process progresses according to plan, but the complexity of the separation, including the IT structure, may stretch the overall time plan.
The initiated organizational review is progressing well, rightsizing both organizations to create strong foundations for the future and to withstand turbulent markets. More focused businesses with less complexity allow for leaner organizational structures resulting in sizeable reductions in staff positions, not least within
Outlook
Lately, the business environment has experienced significant volatility driven by increased geopolitical uncertainty including trade and tariff turmoil. We are preparing the business for different scenarios and remain confident that our strategy, in combination with our decentralized organization and effective cost management, will provide us with the agility and flexibility to navigate through these turbulent times. So far, we have largely compensated for increased tariff costs through price adjustments and we expect to continue to do so also in the second quarter, given current tariff levels. However, today's market uncertainty may influence demand and the prerequisites for certain products and markets.
We expect continued volatility and, even if we have seen signs of markets bottoming out, we plan for another quarter with negative volumes and expect organic sales to weaken somewhat in Q2, year-over-year."
Outlook and guidance
Outlook
- Q2 2025: We expect continued volatility and, even if we have seen signs of markets bottoming out, we plan for another quarter with negative volumes and expect organic sales to weaken somewhat in Q2, year-over-year.
Guidance Q2 2025
- Currency impact on the operating profit is expected to be around MSEK 400 negative compared to the second quarter 2024, based on exchange rates per 31 March 2025.
Guidance FY 2025
- Tax level excluding effects related to divested businesses: around
26% . - Additions to property, plant and equipment: around BSEK 4.5 excluding separation of the Automotive business.
A webcast will be held on 25 April 2025 at 09:00 (CEST):
https://investors.skf.com
Aktiebolaget SKF
(publ)
For further information, please contact:
Press Relations: Carl Bjernstam, +46 31-337 2517; +46 722 201 893; carl.bjernstam@skf.com
Investor Relations: Sophie Arnius, +46 31-337 8072; +46 705 908072; sophie.arnius@skf.com
The financial information in this press release contains inside information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above on 25 April 2025 at 07.30 CEST.
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SOURCE SKF
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