SKF Q2 2025: Another quarter of margin resilience
SKF (OTC:SKFRY) reported Q2 2025 results showing margin resilience despite challenging market conditions. The company achieved an adjusted operating margin of 13.3% (up from 13.0%), with net sales of MSEK 23,166 and organic growth of -0.2%.
Key highlights include strong Industrial segment performance with a 16.6% margin, while Automotive faced headwinds except in electrical vehicles. The company announced a significant rightsizing program targeting approximately 1,700 positions, primarily in Europe, expecting annual savings of BSEK 2 by 2027. The aerospace business showed notable improvement with 12% annual sales growth and an 8pp margin increase since 2022.
SKF (OTC:SKFRY) ha riportato i risultati del secondo trimestre 2025 evidenziando una solidità dei margini nonostante un contesto di mercato difficile. L'azienda ha raggiunto un margine operativo rettificato del 13,3% (in aumento rispetto al 13,0%), con vendite nette pari a 23.166 MSEK e una crescita organica dello -0,2%.
I punti salienti includono una forte performance del segmento Industriale con un margine del 16,6%, mentre il settore Automotive ha incontrato difficoltà, fatta eccezione per i veicoli elettrici. La società ha annunciato un programma di ridimensionamento significativo che coinvolge circa 1.700 posizioni, principalmente in Europa, prevedendo risparmi annuali di 2 miliardi di SEK entro il 2027. Il business aerospaziale ha mostrato un miglioramento notevole con una crescita annua delle vendite del 12% e un incremento del margine di 8 punti percentuali rispetto al 2022.
SKF (OTC:SKFRY) reportó resultados del segundo trimestre de 2025 mostrando resistencia en los márgenes a pesar de condiciones de mercado desafiantes. La compañía alcanzó un margen operativo ajustado del 13,3% (subiendo desde 13,0%), con ventas netas de 23.166 MSEK y un crecimiento orgánico de -0,2%.
Los aspectos destacados incluyen un fuerte desempeño del segmento Industrial con un margen del 16,6%, mientras que el sector Automotriz enfrentó dificultades, salvo en vehículos eléctricos. La empresa anunció un programa significativo de ajuste de plantilla que apunta a aproximadamente 1.700 puestos, principalmente en Europa, esperando ahorros anuales de 2 mil millones de SEK para 2027. El negocio aeroespacial mostró una mejora notable con un crecimiento anual de ventas del 12% y un aumento del margen de 8 puntos porcentuales desde 2022.
SKF (OTC:SKFRY)는 2025년 2분기 실적에서 어려운 시장 상황에도 불구하고 견고한 마진을 기록했습니다. 회사는 조정 영업이익률 13.3% (이전 13.0% 대비 상승)을 달성했으며, 순매출은 23,166 MSEK, 유기적 성장률은 -0.2%를 기록했습니다.
주요 내용으로는 산업 부문의 강력한 실적이 16.6% 마진으로 나타났으며, 자동차 부문은 전기차를 제외하고 어려움을 겪었습니다. 회사는 주로 유럽에서 약 1,700명 규모의 인력 조정 프로그램을 발표했으며, 2027년까지 연간 20억 SEK의 비용 절감을 기대하고 있습니다. 항공우주 사업은 연간 매출 12% 성장과 2022년 대비 8%포인트 마진 상승을 보이며 크게 개선되었습니다.
SKF (OTC:SKFRY) a publié ses résultats du deuxième trimestre 2025, démontrant une résilience des marges malgré des conditions de marché difficiles. La société a réalisé une marge opérationnelle ajustée de 13,3% (en hausse par rapport à 13,0%), avec un chiffre d'affaires net de 23 166 MSEK et une croissance organique de -0,2%.
Les points clés incluent une forte performance du segment Industrie avec une marge de 16,6%, tandis que le secteur Automobile a rencontré des vents contraires, sauf dans les véhicules électriques. L'entreprise a annoncé un programme important de redimensionnement visant environ 1 700 postes, principalement en Europe, avec des économies annuelles attendues de 2 milliards de SEK d'ici 2027. Le secteur aérospatial a montré une amélioration notable avec une croissance annuelle des ventes de 12% et une augmentation de marge de 8 points de pourcentage depuis 2022.
SKF (OTC:SKFRY) meldete die Ergebnisse für das zweite Quartal 2025 und zeigte eine stabile Margenentwicklung trotz herausfordernder Marktbedingungen. Das Unternehmen erzielte eine bereinigte operative Marge von 13,3% (ein Anstieg von 13,0%) bei einem Nettoumsatz von 23.166 MSEK und einem organischen Wachstum von -0,2%.
Zu den wichtigsten Highlights zählt die starke Performance im Industriesegment mit einer Marge von 16,6%, während der Automobilbereich mit Gegenwind zu kämpfen hatte, außer im Bereich der Elektrofahrzeuge. Das Unternehmen kündigte ein bedeutendes Restrukturierungsprogramm an, das etwa 1.700 Stellen vor allem in Europa betrifft und Einsparungen von 2 Milliarden SEK pro Jahr bis 2027 erwartet. Das Luftfahrtgeschäft zeigte eine deutliche Verbesserung mit 12% jährlichem Umsatzwachstum und einem Margenanstieg um 8 Prozentpunkte seit 2022.
- Adjusted operating margin improved to 13.3% despite flat organic sales
- Industrial segment margin increased to 16.6% with growth in all regions
- Aerospace business achieved 12% annual sales growth and 8pp margin improvement
- Strong cash flow of BSEK 2.8, up from BSEK 2.2, driven by working capital improvements
- Cost-saving program expected to deliver BSEK 2 in annual savings by 2027
- Organic sales declined 0.2% year-over-year
- Automotive segment facing challenging global market conditions
- Significant negative currency impact affecting operating profit
- Workforce reduction of 1,700 positions, primarily in Europe
- High Items Affecting Comparability (IAC) costs of BSEK -1.8 in Q2
Q2 2025
- Net sales: MSEK 23,166 (25,606)
- Organic growth: −
0.2% (−6.6% ), driven by lower market demand within the Automotive market while the Industrial segment reported organic sales growth. - Adjusted operating profit: MSEK 3,090 (3,324). The decrease was due to significant currency headwind. Solid price/mix contribution, driven by pricing activities and portfolio management, as well as good cost control more than offset lower volumes.
- Adjusted operating margin:
13.3% (13.0% ) with Industrial at16.6% (16.3% ) and Automotive at5.1% (5.3% ). - Net cash flow from operating activities: MSEK 2,817 (2,152).
Financial overview, MSEK unless otherwise stated | Q2 2025 | Q2 2024 | Half year 2025 | Half year 2024 |
Net sales | 23,166 | 25,606 | 47,132 | 50,305 |
Organic growth, % | −0.2 | −6.6 | −1.8 | −6.8 |
Adjusted operating profit | 3,090 | 3,324 | 6,323 | 6,627 |
Adjusted operating margin, % | 13.3 | 13.0 | 13.4 | 13.2 |
Operating profit | 1,300 | 2,489 | 4,185 | 5,482 |
Operating margin, % | 5.6 | 9.7 | 8.9 | 10.9 |
Adjusted net profit | 2,373 | 2,498 | 4,669 | 4,810 |
Net profit | 583 | 1,663 | 2,531 | 3,665 |
Net cash flow from operating activities | 2,817 | 2,152 | 3,794 | 3,933 |
Basic earnings per share | 1.13 | 3.36 | 5.08 | 7.50 |
Adjusted earnings per share | 5.06 | 5.19 | 9.77 | 10.02 |
Rickard Gustafson, President and CEO:
"It's encouraging that our adjusted operating margin improved, year-over-year, with relatively flat organic sales and significant currency headwind. We have continued to work hard to create a strong foundation for the future, including our ongoing rightsizing activities.
Margin resilience in markets with mixed demand
Our organic sales declined in the second quarter by -
Our Automotive business continued to face challenging market conditions globally, except for electrical vehicles, resulting in an organic sales decline, year-over-year.
We delivered a strong adjusted operating margin of
Items affecting comparability (IAC) was high in the quarter. This as the full amount of costs related to the previously indicated rightsizing program were charged. As the Automotive separation is building momentum, IAC also includes sequentially higher separation costs. Furthermore, we reported a capital gain of BSEK 0.8. Due to timing effects, costs related to footprint regionalization were low in the quarter. In total, IAC amounted to BSEK -1.8.
Cash flow increased to BSEK 2.8 (2.2) due to improved working capital, where accounts payable contributed positively.
A more competitive Industrial business
Strengthened operational and commercial excellence are key pillars to create significant customer value in targeted markets.
As part of improving our operational excellence, we have managed to swiftly adapt our organization to the rapidly changing market conditions in recent years, contributing to our margin resilience.
To further enhance our competitiveness, the previously announced rightsizing of our Industrial business, enabled by the Automotive separation, comprise of a gross reduction of approximately 1,700 positions, primarily staff positions in
One targeted market, where we have improved our performance through commercial excellence including portfolio prioritization and pricing activities, is aerospace. Following the strategic review we started in 2023, our aerospace business has had
Outlook
While the global economic development makes the outlook uncertain, we expect organic sales to be relatively unchanged in Q3, year-over-year."
Outlook and guidance
Outlook
- Q3 2025: While the global economic development makes the outlook uncertain, we expect organic sales to be relatively unchanged, year-over-year.
Guidance Q3 2025
- Currency impact on the operating profit is expected to be around MSEK 500 negative compared to the third quarter 2024, based on exchange rates per 30 June 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 18 July 2025 at 09:00 (CEST):
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 half year report presented in this press release contains financial and inside information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through the agency of the contact person set out above on 18 July 2025 at 07.30 CEST.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/skf/r/skf-q2-2025--another-quarter-of-margin-resilience,c4208589
The following files are available for download:
Q2_2025_Eng | |
Aerospace | |
https://news.cision.com/skf/i/rickard-gustafson-jpg-highpreview-800,c3457113 | Rickard Gustafson jpg highpreview 800 |
View original content:https://www.prnewswire.com/news-releases/skf-q2-2025-another-quarter-of-margin-resilience-302508514.html
SOURCE SKF
FAQ
What were SKF's key financial metrics for Q2 2025?
How much cost savings does SKF expect from its rightsizing program?
What is SKF's outlook for Q3 2025?
How did SKF's Automotive segment perform in Q2 2025?
What improvements did SKF's aerospace business achieve?
