Sweden's SKF misses Q3 sales, operating profit estimates
Overview
Swedish bearings maker's Q3 net sales grew yr/yr but missed analyst expectations
Operating profit missed analyst expectations
Adjusted EPS for Q3 rose yr/yr
Outlook
SKF expects organic sales for continuing operations to strengthen somewhat in Q4 2026 year-over-year
Company says market volatility remains high, amplifying overall uncertainty for Q4 2026
Company lowers 2026 capex guidance to SEK 2.5 bln, down SEK 0.5 bln from previous forecast
Result Drivers
SELECTED OEM DEMAND - Co said organic sales growth was driven by higher demand in selected OEM markets, including data centers, infrastructure, security and defence
SIS PERFORMANCE - Specialized Industrial Solutions segment saw strong growth, especially in Aerospace and Magnetic Solutions
COST SAVINGS - Rightsizing program savings more than offset negative separation-related synergies, per co
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | SEK 17.47 bln | SEK 21.47 bln (7 Analysts) |
Q3 Adjusted EPS | SEK 3.88 | ||
Q3 EBIT | Miss | SEK 2.78 bln | SEK 2.84 bln (9 Analysts) |
Q3 Adjusted EBIT | SEK 2.85 bln | ||
Q3 Adjusted EBIT Margin | 16.30% | ||
Q3 Basic EPS | SEK 3.74 |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for SKF AB is SEK275.00, about 0.7% above its October 20 closing price of SEK273.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand
Oct 20 - Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric
Oct 21 - Sweden's Handelsbanken Q3 operating profit rises 10%
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)