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SKF AB Class A ( ($SE:SKF.A) ) has shared an update.
SKF AB reported flat organic sales for the fourth quarter of 2025 as growth in its Industrial division was offset by weakening demand in Automotive, while adjusted operating margin improved to 11.8% despite lower net sales, currency headwinds and soft market conditions. For the full year, the group delivered a resilient adjusted operating margin of 12.7% and solid operating cash flow, supported by cost reductions, rightsizing, footprint optimization and lower material costs, although items affecting comparability, including costs related to the Automotive separation and plant closures, weighed on reported profit and earnings per share. Management highlighted that the ongoing separation of the Automotive business, targeted for listing on Nasdaq Stockholm in the fourth quarter of 2026, is central to creating two fit-for-purpose companies: a higher-margin, pure-play industrial group aiming for an adjusted operating margin above 19% over a business cycle, and an Automotive unit focused on faster-growing, higher-margin segments. Despite geopolitical uncertainty, tariffs and soft demand, SKF expects market conditions in the first quarter of 2026 to remain broadly similar to the fourth quarter but with slightly stronger organic sales on easier comparables, and the board has proposed a dividend of SEK 7.75 per share, underlining confidence in the group’s financial position and long-term value-creation strategy.
The most recent analyst rating on ($SE:SKF.A) stock is a Hold with a SEK250.00 price target. To see the full list of analyst forecasts on SKF AB Class A stock, see the SE:SKF.A Stock Forecast page.
More about SKF AB Class A
SKF AB is a global industrial engineering group specializing in bearings, seals, lubrication systems and related services, with a strong presence in industrial markets such as aerospace, energy and general manufacturing, as well as the automotive sector. The company is in the process of separating its Automotive business to become a focused, pure-play industrial company, aiming to sharpen its competitive positioning and improve long-term profitability and growth.
Average Trading Volume: 7,283
Technical Sentiment Signal: Buy
Current Market Cap: SEK116.1B
Learn more about SKF.A stock on TipRanks’ Stock Analysis page.