SKF AB Class A (SE:SKF.A)
:SKF.A
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SKF AB Class A
(SKF.A)
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Rating:63Neutral
Price Target:
kr277.00
▲(12.15% Upside)
Action:ReiteratedDate:02/01/26
The score is driven mainly by stable underlying financial health (stronger balance sheet and positive free cash flow) but tempered by ongoing profitability compression and limited top-line momentum. Technicals are currently weak with the stock trading below key moving averages, and valuation looks somewhat expensive versus recent earnings pressure despite a supportive dividend. Earnings-call guidance was mixed, with cost and separation execution positives offset by notable FX headwinds and Automotive weakness.
Positive Factors
Industrial segment strength
SKF's Industrial business is the clear profit engine, accounting for the majority of sales and nearly all adjusted operating profit. That concentration in higher-margin industrial aftermarket and OEM channels provides durable earnings support and cash generation even if cyclical end markets wobble.
Negative Factors
Automotive segment weakness
Automotive is ~27% of sales but delivers very low margins and recent volume declines, making it a structural drag on group profitability. The planned separation increases near-term volatility and dissynergies, and a prolonged weak auto cycle would depress consolidated margins and returns for several quarters to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Industrial segment strength
SKF's Industrial business is the clear profit engine, accounting for the majority of sales and nearly all adjusted operating profit. That concentration in higher-margin industrial aftermarket and OEM channels provides durable earnings support and cash generation even if cyclical end markets wobble.
Read all positive factors
SKF AB Class A (SKF.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr100.97B
Dividend Yield3.16%
Average Volume (3M)5.63K
Price to Earnings (P/E)49.5
Beta (1Y)1.36
Revenue Growth-4.16%
EPS Growth-12.95%
CountrySE
Employees38,426
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)3.50
Shares Outstanding28,930,820
10 Day Avg. Volume5,124
30 Day Avg. Volume5,635
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)2.10
Price to Sales (P/S)1.23
P/FCF Ratio24.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)16.54
Revenue Forecast (FY)kr90.29B
SKF AB Class A Business Overview & Revenue Model
Company Description
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 ho...
How the Company Makes Money
SKF AB generates revenue primarily through the sale of its core products, including bearings, seals, and lubrication systems. These products are essential components in a wide range of machinery used in various industries, leading to steady demand...
SKF AB Class A Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Neutral
The call communicated a mix of resilience and challenge: strong margin performance, industrial outperformance, successful cost programs (rightsizing, world‑class manufacturing) and solid cash/ balance sheet metrics are clear positives. However, significant currency headwinds, one‑off separation costs, a weak Automotive business with low margins and near‑term dissynergies temper the outlook. Management has a concrete plan (including accelerating asset transfers and guiding an Automotive IPO in Q4 2026) and expects to largely mitigate tariffs via price/mix actions, but the recovery depends on macro and FX evolution. Overall the positives and negatives are roughly balanced.Positive Updates
Improved Adjusted Operating Margins
Adjusted operating margin improved to 12.7% for full year 2025 and 11.8% in Q4 2025, reflecting margin resilience despite challenging market conditions and currency headwinds.
Negative Updates
Automotive Weakness and Low Margins
Automotive (27% of net sales) reported negative organic growth close to 6% in Q4 and an adjusted operating margin of just 1.7% for the quarter; full year Automotive organic growth declined ~4% with full year margin just north of 4% — indicating continued softness and margin pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Improved Adjusted Operating Margins
Adjusted operating margin improved to 12.7% for full year 2025 and 11.8% in Q4 2025, reflecting margin resilience despite challenging market conditions and currency headwinds.
Read all positive updates
Company Guidance
Management guided that Q1 2026 demand should be similar to Q4 2025 with organic sales expected to “strengthen somewhat” year‑over‑year, but warned of a sequential FX hit of about SEK 800m (mainly USD and TRY) in Q1; for 2026 they expect a tax rate of ~28% (excl. automotive separation/divestments), group CapEx of ~SEK 5bn (Industrial ~5% of sales, plus Automotive separation‑related investments), and one‑off separation/footprint costs of roughly SEK 2.5–3.0bn for the year (consistent with the SEK 6.5bn guidance for Q4‑2025–2028). They reiterated plans to list Automotive in Q4 2026, said rightsizing delivered ~SEK 190m in Q4 and should reach a SEK 2bn run‑rate by end‑2027 (from ~SEK 750m today), confirmed the SEK 5bn world‑class manufacturing savings have been delivered, and expect to largely offset known tariff impacts into Q1.SKF AB Class A Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 91.58B | 98.72B | 103.88B | 96.93B | 81.73B |
| Gross Profit | 24.52B | 27.37B | 26.49B | 24.47B | 23.27B |
| EBITDA | 12.38B | 14.61B | 14.34B | 11.51B | 13.76B |
| Net Income | 3.93B | 6.47B | 6.39B | 4.47B | 7.33B |
Balance Sheet | |||||
| Total Assets | 106.42B | 119.41B | 111.90B | 110.92B | 99.63B |
| Cash, Cash Equivalents and Short-Term Investments | 9.15B | 11.09B | 13.65B | 11.22B | 13.66B |
| Total Debt | 15.34B | 20.04B | 21.69B | 21.27B | 19.21B |
| Total Liabilities | 50.75B | 57.44B | 56.95B | 56.88B | 54.26B |
| Stockholders Equity | 53.56B | 59.65B | 52.74B | 51.93B | 43.65B |
Cash Flow | |||||
| Free Cash Flow | 4.56B | 5.70B | 8.02B | 428.00M | 1.36B |
| Operating Cash Flow | 8.39B | 10.79B | 13.78B | 5.64B | 5.25B |
| Investing Cash Flow | -1.50B | -5.60B | -5.87B | -5.35B | -3.15B |
| Financing Cash Flow | -8.29B | -7.57B | -4.51B | -3.40B | -3.51B |
SKF AB Class A Technical Analysis
Negative
247.00
Price Trends
243.92
Negative
245.19
Negative
238.66
Negative
Market Momentum
-9.08
Positive
34.68
Neutral
26.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SKF.A, the sentiment is Negative. The current price of 247 is above the 20-day moving average (MA) of 233.40, above the 50-day MA of 243.92, and above the 200-day MA of 238.66, indicating a bearish trend. The MACD of -9.08 indicates Positive momentum. The RSI at 34.68 is Neutral, neither overbought nor oversold. The STOCH value of 26.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SKF.A.
SKF AB Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | kr215.18B | 23.27 | 20.42% | 1.84% | 3.54% | 20.94% | |
63 Neutral | kr100.97B | 49.50 | ― | 3.16% | -4.16% | -12.95% | |
61 Neutral | kr77.12B | 24.91 | 9.65% | 1.95% | 2.73% | 7.56% | |
60 Neutral | kr100.97B | 49.26 | 8.90% | 3.19% | -4.16% | -12.95% | |
57 Neutral | kr258.24B | 43.82 | 6.71% | 1.46% | -0.93% | -34.25% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | kr77.58B | 31.54 | 9.65% | 0.86% | -0.69% | 269.86% |
* General Sector Average
SE:SKF.A
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SKF AB Class A Corporate Events
AB SKF Sets April Date and Procedures for 2026 Annual General Meeting
Mar 18, 2026
AB SKF has called its Annual General Meeting for 21 April 2026 at the Elite Park Avenue Hotel in Gothenburg, where shareholders will receive corporate updates and a summary of the president’s address will later be published on the company...
SKF Updates Share and Voting Structure After A-to-B Conversion
Jan 30, 2026
SKF AB has announced an updated share and voting structure following the conversion of a portion of its Series A shares into Series B shares under its Articles of Association. As of 30 January 2026, the company has a total of 455,351,068 shares ou...
SKF boosts margins amid weak auto markets as it accelerates Automotive spin-off plan
Jan 30, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.