GOTHENBURG, Sweden, Oct. 21, 2026 /PRNewswire/ -- Comments and figures in this report refer to SKF Group's continuing operations unless otherwise stated. The Automotive segment is reported as discontinued operations and as assets/liabilities held for distribution. The income statement and cash flow statement have been updated for comparative periods, whilst the balance sheet has been updated per September only. Related key figures have been adjusted accordingly.

Q3 2026

   -- Net sales: MSEK 17,467 (16,562) 
 
   -- Organic growth: 4.3% (3.7%). Driven by both positive demand as well as 
      solid price/mix contribution. 
 
   -- Adjusted operating profit: MSEK 2,845 (2,553). Driven by strong 
      commercial execution, especially within Specialized Industrial Solutions 
      (SIS). 
 
   -- Adjusted operating margin: 16.3% (15.4%). 
 
   -- Net cash flow from operating activities: MSEK 2,076 (1,780). Mainly 
      driven by improved operating result, partly offset by working capital 
      build-up. 
 
Financial overview, MSEK unless 
otherwise stated                  Q3 2026  Q3 2025  Jan-Sep 2026  Jan-Sep 2025 
--------------------------------  -------  -------  ------------  ------------ 
Net sales                         17,467   16,562   51,215        51,491 
Organic growth, %                 4.3      3.7      3.5           1.2 
Adjusted operating profit         2,845    2,553    8,383         8,137 
Adjusted operating margin, %      16.3     15.4     16.4          15.8 
Operating profit                  2,778    2,166    8,108         6,357 
Operating margin, %               15.9     13.1     15.8          12.3 
Adjusted net profit               1,844    1,674    5,806         5,707 
Adjusted earnings per share, SEK  3.88     3.52     12.28         11.90 
Net profit                        1,777    1,287    5,531         3,927 
Basic earnings per share, SEK     3.74     2.67     11.68         8.00 
Net debt/Adjusted EBITDA, times   1.1      0.9(1)   1.1           0.9(1) 
Adjusted ROCE, %                  15.3(2)  14.0(1)  15.3(2)       14.0(1) 
Net cash flow from operating 
 activities                       2,076    1,780    4,513         5,336 
Net profit, SKF Group including 
 discontinued operations          1,428    1,127    4,495         3,658 
Basic earnings per share, SEK, 
 SKF Group including 
 discontinued operations          2.91     2.30     9.26          7.38 
 

1) SKF Group including discontinued operations.

2) Based on the balance sheet by the end of the period and not 12 months' rolling average.

Rickard Gustafson, President and CEO:

"We delivered 4.3% organic growth and increased adjusted operating margin by 0.9 percentage points to 16.3%, year-over-year, supported by strong commercial execution. We are also bringing forward our BSEK 2 annual savings target by six months, to mid-2027. Shareholder approval of the SKF Vertevo distribution at the EGM marked an important milestone.

Growth in selected markets supports improved margin

Ahead of the planned listing of SKF Vertevo on Nasdaq Stockholm on 1 December 2026, the Automotive business is reported as Discontinued operations from Q3. Looking at our Continuing operations, i.e. our industrial business, organic sales growth was 4.3%, driven by both volume and solid price/mix. We saw higher demand in selected OEM markets, including drives connected to data centers, infrastructure, as well as security and defence.

Bearing Solutions grew by 2.8%, with continued growth in India and Southeast Asia and further improvement in the OEM market in the Americas. Development was broadly unchanged in Europe, Middle East and Africa, as well as in China and Northeast Asia. Specialized Industrial Solutions (SIS) continued its strong performance where organic sales increased by 8.3%, growing across all business units and particularly in Aerospace and Magnetic Solutions. It's worth noting that in Magnetic Solutions, we continue to strengthen our position by expanding production capacity and increasing automation to capture structural growth.

I'm pleased that the industrial business improved its adjusted operating margin, compared to the same quarter last year, to 16.3%, reflecting continued strong commercial execution, particularly in SIS. Rightsizing savings of approximately MSEK 350, corresponding to an annual pace of about BSEK 1.7, more than offset negative separation-related synergies. The rightsizing program is progressing well, and we now expect to reach the targeted annual run-rate savings of approximately BSEK 2 by mid-2027 compared to end-2027 as previously communicated.

We continue to actively work with our cost and commercial execution to mitigate continued cost inflation in input costs and logistics. Tariff-related costs were again largely compensated. Investments in our transformation initiatives to harmonize and modernize our IT landscape proceeded as planned. Support production to the automotive business in Q3 was non-material. Currency effects provided a minor tailwind in Q3.

Cash flow from operations increased year-over-year to BSEK 2.1, supported by the improved operating result and partly offset by an increase in inventory for components and materials, primarily within SIS to support continued growth.

Preparing for two focused companies

The approval by our shareholders of the distribution of the shares in SKF Vertevo marked an important milestone ahead of the planned listing on 1 December 2026. Another milestone will be SKF Vertevo's Capital Markets Day (CMD) on 17 November. In Q3, they delivered a solid performance with an improved adjusted operating margin of 4.6% despite challenging market conditions where organic sales declined by --4.0%.

As the separation progresses, we have updated the classification of some items affecting comparability (IAC) between separation and footprint optimization activities. The total expected level of IAC remains unchanged from our CMD 2025 communication, and this has no impact on our path towards achieving our long-term industrial business margin target. Additional production lines transferred to the Automotive business will decrease the need for industrial footprint optimization with BSEK 0.5, while IAC related to the separation will increase by the same amount, totaling approximately BSEK 3.

Out of SKF Vertevo's total production, a few production lines remain to be transferred into SKF Vertevo plants during 2027. This means that contract manufacturing to SKF Vertevo will start to decrease from Q2 2027. Thereafter, it is expected to decrease significantly over the medium term.

Outlook

We expect organic sales for SKF Group's continuing operations to strengthen somewhat in Q4, year-over-year. This as we see a similar market environment as we had in Q3. However, market volatility remains high which amplifies overall uncertainty."

Outlook and guidance

The statements below refer to SKF Group's continuing operations unless otherwise stated.

Outlook Q4 2026

   -- We expect organic sales for SKF Group's continuing operations to 
      strengthen somewhat in Q4, year-over-year. This as we see a similar 
      market environment as we had in Q3. However, market volatility remains 
      high which amplifies overall uncertainty. 

Guidance Q4 2026

   -- Currency impact on the operating profit: around MSEK 150, year-over-year, 
      based on exchange rates as per 30 September 2026. 

Guidance FY 2026

   -- Tax level excluding effects related to divested businesses and separation 
      of the Automotive business: around 27%. 
 
   -- Additions to property, plant and equipment: around BSEK 2.5. Compared to 
      previous guidance, this corresponds to a decrease of around BSEK 0.5 as 
      result of optimization of SKF Group's continuing operations' planned 
      investments. 
 
   -- IAC related to the Automotive separation and footprint optimization for 
      SKF Group including discontinued operations: BSEK --2.5 to --3. This is 
      within the frame communicated at CMD 2025.1) 

1) SKF Group including discontinued operations.

A webcast will be held on 21 October 2026 at 08:30 (CEST):

Sweden: +46 (0)8 5051 0031

UK/International: +44 (0)203 059 5863

https://www.skf.com/group/investors

Aktiebolaget SKF

(publ)

The financial information in this press release contains inside information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out below on 21 October 2026 at 07:30 CEST.

For further information, please contact:

Press Relations: Carl Bjernstam, +46 31-337 2517; +46 722 201 893; carl.bjernstam@skf.com

Investor Relations: Sophie Arnius, +46 31-337 8072; +46 705 908 072; sophie.arnius@skf.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/skf/r/skf-q3-2026--improved-margin-and-selectively-higher-demand, c4412564

The following files are available for download:

 
https://mb.cision.com/Main/637/4412564/4328853.pdf        Q3 2026_Eng 
https://news.cision.com/skf/i/skf-magnetic-bearing,c3574  SKF Magnetic Bearing 
073 
https://news.cision.com/skf/i/rickard-gustafson,c3574074  Rickard Gustafson 
 

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SOURCE SKF