Balance Sheet StrengthSKF's leverage has steadily declined (debt/equity from 0.52 in 2020 to 0.29 in 2025) and net debt excluding pension fell, improving net-debt/EBITDA to ~0.5. This conservative structure provides durable financial flexibility to fund Automotive separation, sustain dividends and absorb macro shocks over the medium term.

Consistent Cash GenerationFree cash flow has been positive annually and improved in 2025, with operating cash flow SEK 8.4bn. FCF/net income ~0.54 in 2025 indicates the business converts earnings into cash. Reliable cash generation supports capital allocation, deleveraging and funding of separation costs without structural liquidity stress.

Industrial Segment OutperformanceThe Industrial franchise drives the bulk of profit and higher margins (Industrial adjusted margin ~15.6%), with organic growth north of 2% in Q4. This high-margin, market-leading segment provides a durable earnings base and offsets weaker Automotive performance, supporting medium-term margin stability.

Bears Say

Automotive WeaknessAutomotive is ~27% of sales but shows persistent softness and very low profitability (Q4 adj op margin 1.7%, full-year margin just above 4%). Its scale and weak margins are a structural drag on group profitability and complicate margin recovery even after planned separation and rightsizing.

Declining Revenue And MarginsTop-line has softened (revenue declines in 2024 and 2025) while net and operating margins have trended lower (net margin from 6.56% to 4.29%). This multi-year erosion signals structural pressure from adverse mix, pricing and cost dynamics that could persist absent sustained revenue recovery or structural margin improvements.

FX And Separation Cost HeadwindsCurrency effects materially depressed results (FX reduced sales by ~10.6%, Q1 2026 FX ~SEK800m) and management expects one-off separation/footprint costs (~SEK2.5–3.0bn in 2026). Together these create durable earnings and cash-flow volatility and will weigh on near-to-medium-term profitability as the Automotive separation progresses.

SKF.A FAQ

What was SKF AB Class A’s price range in the past 12 months?

SKF AB Class A lowest stock price was kr157.00 and its highest was kr263.00 in the past 12 months.

What is SKF AB Class A’s market cap?

SKF AB Class A’s market cap is kr118.97B.

When is SKF AB Class A’s upcoming earnings report date?

SKF AB Class A’s upcoming earnings report date is Apr 21, 2026 which is in 55 days.

How were SKF AB Class A’s earnings last quarter?

SKF AB Class A released its earnings results on Jan 30, 2026. The company reported kr3.5 earnings per share for the quarter, beating the consensus estimate of kr2.601 by kr0.899.

Is SKF AB Class A overvalued?

According to Wall Street analysts SKF AB Class A’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does SKF AB Class A pay dividends?

SKF AB Class A pays a Annually dividend of kr7.75 which represents an annual dividend yield of 3.16%. See more information on SKF AB Class A dividends here

What is SKF AB Class A’s EPS estimate?

SKF AB Class A’s EPS estimate is 3.52.

How many shares outstanding does SKF AB Class A have?

SKF AB Class A has 28,930,820 shares outstanding.

What happened to SKF AB Class A’s price movement after its last earnings report?

SKF AB Class A reported an EPS of kr3.5 in its last earnings report, beating expectations of kr2.601. Following the earnings report the stock price went down -6.746%.

Which hedge fund is a major shareholder of SKF AB Class A?

Currently, no hedge funds are holding shares in SE:SKF.A

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

SKF AB Class A

AB SKF (publ) engages in the design, development, and manufacture of bearings, seals, lubrication systems, and services worldwide. It operates in two segments, Industrial and Automotive. The company offers rolling bearings, mounted bearings and housings, super-precision bearings, slewing bearings, plain bearings, magnetic bearings and systems, industrial and automotive seals, lubrication management solutions, maintenance products, condition monitoring systems, power transmission solutions, test and measuring equipment, vehicle aftermarket, and waste electric and electronic equipment products. It also provides various services, including application engineering, asset management, condition-based maintenance, mechanical maintenance, remanufacturing and customization, and training solutions. The company offers its solutions for various industries, including aerospace, agriculture, cars and light trucks, construction, food and beverage, general machinery, machine tools, marine, material handling, metals, mining, mineral processing and cement, ocean energy, oil and gas, pulp and paper, railways, trucks, trailers, buses, two and three wheelers, and wind energy. AB SKF (publ) was founded in 1907 and is headquartered in Gothenburg, Sweden.