Swedish engineering firm Sandvik AB reported mixed full-year results, with reported revenue slipping 2% while profitability improved. The company said currency movements weighed on reported top-line figures even as demand translated into higher order intake and an increase in profit for the period.
For the year, Sandvik's revenue fell to 120.9 billion Swedish crowns from 122.9 billion the prior year. Profit for the period climbed to 14.69 billion crowns, up from 12.25 billion. Diluted earnings per share rose to 11.70 crowns from 9.75.
Total order intake for the year expanded by 3% on a reported basis and by 11% when measured at fixed exchange rates. While reported revenue declined by 2% year-on-year, revenue increased 6% on a constant currency basis, which included 5% organic growth.
"Strong financial results, proven resilience and significant strategic progress summarize and conclude not only 2025," President and CEO Stefan Widing said in a statement.
Adjusted EBITA edged slightly lower to 23.31 billion crowns from 23.58 billion the previous year, while the adjusted EBITA margin moved up marginally to 19.3% from 19.2%. Currency movements had a visible effect in the fourth quarter: they reduced profit by 713 million crowns in Q4 alone and corresponded to a margin dilution of 120 basis points for that quarter.
In the fourth quarter specifically, order intake rose 4% overall and 15% at fixed exchange rates. Reported revenue for the quarter increased 1%, or 12% on a constant currency basis.
At the business-segment level, Sandvik Mining and Rock Solutions experienced a 17% increase in organic order intake in mining during the quarter, driven by demand for equipment, parts and digital technologies. Machining and Intelligent Manufacturing posted organic order intake growth of 15% and revenue growth of 11%, supported by orders from aerospace, medical and defense customers.
On the balance sheet, financial net debt fell to 26.5 billion crowns from 32.1 billion a year earlier, tightening the net debt-to-EBITDA ratio to 0.9 from 1.2. The company also completed eleven acquisitions during 2025 with a combined purchase price of 1.58 billion crowns.
Sandvik's results illustrate the tension between strong underlying demand in key industrial end markets and the near-term effects of foreign exchange on reported financials. While adjusted operating profit held broadly steady and leverage improved, currency headwinds remain a tangible influence on quarterly margins.