Sandvik AB

Mixed Demand and Performance: In Q1 2025, Sandvik reported solid performance in its mining segment, with a 2% increase in total order intake and 1% revenue growth. Mining orders increased by 26% in equipment and showed double-digit growth in parts and services. Conversely, the cutting tools and infrastructure segments continue to struggle due to a weak macroeconomic environment, leading to overall mixed demand across regions, with Europe seeing a decline of 8%.

Margin Improvement: The adjusted EBITA margin improved by 1.5 percentage points to 19.7%, aided by structural savings from previous restructuring programs and currency effects. The absolute adjusted profit for the quarter rose to SEK 3.8 billion, up from SEK 3.3 billion year-over-year. This performance reflects strong operational leverage and cost control.

Concerns About the U.S. Market: Despite stable order intake in early April, there are ongoing concerns about potential demand deterioration in the U.S. market, particularly in light of geopolitical issues related to tariffs. This uncertainty could affect customer spending and capital expenditure, particularly in industrial and automotive sectors.