Maintained Strong Adjusted Operating Margin
Adjusted operating margin of 13.5% in Q1 (flat year-over-year) despite a significant FX headwind (FX reduced margin by ~2.1 percentage points).
Organic Growth in Q1
Group organic growth of 2.4% in Q1, in line with guidance; regional detail includes Americas +4.0% and China / NE Asia +4.5%, while EMEA was -1.0%.
Specialized Industrial Solutions Outperformance
Specialized Industrial Solutions delivered nearly 9% organic growth, margin improvement to 13.3%, and strong price/mix across all four business units (notably Aerospace and Magnetic Solutions). Represents ~20% of sales and ~20% of adjusted operating profit.
Bearing Solutions Margin and Profit Concentration
Bearing Solutions (>50% of net sales, >75% of adjusted operating profit) reported organic growth of 2.4% and an adjusted operating margin of 19.3%, supported by price/mix, world-class manufacturing benefits and higher production volumes.
Rightsizing and Cost Savings Delivered
Rightsizing delivered SEK 300 million of savings in Q1. Management expects a run-rate progression (SEK 1.2bn in Q1 toward SEK 2bn by end-Q4 2027) and indicated rightsizing should be slightly net positive versus separation dissynergies for full-year 2026 (management cited ~SEK 100 million net positive as a reasonable assumption).
Capital Gain and EPS Metrics
Recorded a capital gain from the divestment of Elgin of ~SEK 450 million. Reported EPS SEK 3.6 and adjusted EPS ~SEK 4.25 for Q1.
Automotive Strategic Wins and Addressable Market Expansion
Automotive reported an increased OE RFQ hit ratio and higher contract values; signed new distribution agreements in North America and Europe expected to generate ~SEK 1 billion of sales over the next four years, and aftermarket momentum improving margins.