Sandvik Q2 2026 Earnings Call: Complete Transcript

Sandvik (OTC: SDVKY ) reported second-quarter financial results on Friday. The transcript from the company's second-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

6%. The company announced a strategic acquisition of DM Filtration, entering a new market segment in mining filtration and dewatering, which is expected to have a growing market driven by regulatory trends. Sandvik launched new products, including a new generation of AutoMine with 3D mapping, enhancing automation solutions, and inaugurated a new innovation hub in Pune, India, to support digital growth. The company provided guidance with expected positive currency effects in Q3 and maintained full-year guidance for capex, interest net, and tax rate.

Management highlighted strong financial performance despite macroeconomic uncertainties, with significant strategic progress in expanding their product offerings and capturing market opportunities. Full Transcript Luis Cheddar, Head of Investor Relations A warm welcome to Sandvik's presentation of the second quarter results 2026. My name is Luis Cheddar, head of investor relations here at Sandvik and beside me I have our CEO Stefan Verding and CFO Cecilia Felt. We will, as usual, start with the presentation.

Stefan and Cecilia will take you through the highlights of the quarter and after that we go on to the Q and A session. So without further ado, over to you, Stefan. Stefan Widing, President & CEO Thank you, Luis, and welcome also from my side to the second quarter report presentation. To summarize the quarter, it was a very strong quarter with record revenues and profits.

We see strong momentum across key regions and segments, as well as also good price realization, which is of course very important in the current environment. Total order intake grew by 17% and organically we grew by 70% as well. Total revenues increased by 24%, but organically 23%. 6 in the prior year period.

6% up from 19%. 4. 7. 6, corresponding to a cash conversion of 46%.

This is on the lower side, but it's driven of course by our significantly higher invoicing and we'll go through the components of that a little bit more throughout the presentation. We'll start with highlighting the acquisition we announced in the quarter, which is very strategic for us, the filter press manufacturer DM Filtration, which is based in Italy. This means that we are entering a new market segment in mining, filtration and dewatering. And this will also form the base for a new filtration division within rock processing.

We have said for a number of years that we have a strategy to grow in attractive niches in downstream mining. We started three years ago with the acquisition of Schenck to complement our crushers with screens. And this is now these next steps we're taking as we also now go down into filtration and dewatering. This is a very attractive business.

Besides the structural growth in mining, filtration is growing even faster. This business market that they are in is growing around 15% per year, driven also by regulatory trends. Where mine operations want to de-risk the tailing dams and also to get the permits to operate the mine, they increasingly move to filter presses instead. And you need large filter presses for this and in this segment, the infiltration is the market leader.

They have a total addressable market of 20 billion in their core offering. If we add also adjacent offerings that they have, it increases further good growth. 1 billion expected this year. Accretive margins and a high share of aftermarket.

So all the attributes that we would like to see in what we call then the attractive niches in downstream mining. So a very strategic acquisition for us in the quarter. Other key strategic highlights in the quarter listed here, Dormer Prawmet released a new turning grade with increased tool life and productivity for our customers. This is an important launch for us to capture the growth opportunities we see in the mid market.

And then very important is completely new generation of auto mine called Auto Mine Aura. This is a complete rewrite of the automime platform. So making sure we are on the latest and the modern technology platform that can scale for the future. It also adds a significant new feature such as 3D mapping in real time.

Currently today the automation solutions used in mines have a 2D navigation system. Going full 3D means that we can in real time map the tunnel of the mine. We can see things like potholes and rocks on the ground. And overall it means we can increase the speed of the automated equipment by over 15%.

And this has also been validated by customers in their natural environment. So really important new technology step for us in Automind to make it easier to deploy, easier to use and increase productivity further. And then intelligent manufacturing in collaboration with Machining have inaugurated a new innovation hub in Pune, India.