AB SKF (publ)

Q3 2026 delivered strong Industrial (continuing ops) momentum - Organic sales growth: +4.3% YoY (total net sales +5.5% YoY including +1.7% currency, -0.5% structure). - Adjusted operating margin: 16.3%, up +0.9pp YoY. - Main drivers: selective higher OEM demand (notably defense, drives, infrastructure) and strong commercial execution, especially in Specialized Industrial Solutions (SIS).

Specialized Industrial Solutions (SIS) was the clear performance standout - SIS represents 26% of net sales and 23% of adjusted operating profit. - SIS organic growth: very strong; all 4 SIS business units grew with especially fast growth in Aerospace and Magnetics. - SIS margin: improved +2.4pp to 14.0%, supported by price mix, benefits from portfolio/pruning optimization, and positive growth mix (Magnetics/Aerospace growing faster than Lubrication & Seals). - Magnetics opportunity (surprising upside narrative): growth driven by data centers, semiconductors, energy; ecosystem approach (condition monitoring + embedded sensors) enabling energy efficiency and uptime benefits; capacity scaling focus (Morocco, China build-out).

Rightsizing/“transformation” progress exceeded earlier timing; also helps offset inflation - SEK 2bn annual run-rate savings now expected ~6 months ahead: completed by mid-2027 (first half 2027) vs prior second half 2027 guidance. - Rightsizing contribution mentioned: ~SEK 350m in the quarter. - Cost headwinds: increased material, utilities, logistics, wage inflation, plus separation preparations creating production disturbances. - Despite that, margin expansion held—management emphasized price/cost actions already offsetting inflation (but details on magnitude not quantified).