Swedish mining equipment and metal-cutting tool manufacturer Sandvik announced that its fourth-quarter core profit slightly exceeded expectations and proposed an increased dividend, supported by higher mining activity and rising commodity prices.
Operating profit before amortisation and items affecting comparability rose by 1% year-over-year to SEK 6.37 billion ($712.5 million), compared to the mean analyst forecast of SEK 6.22 billion in an LSEG poll, driven by a 12% increase in organic sales.
“The positive momentum in mining continued during the fourth quarter, and we observed strong interest in both surface and underground applications,” CEO Stefan Widing stated.
Gold and copper comprise approximately 60% of Sandvik’s commodity exposure within its mining division—the company’s largest operation. Strong price appreciation in these metals has boosted equipment orders, contributing to a 51% rise in the company’s share price last year.
Shares Trade Flat After Previous Gains
Sandvik shares were broadly unchanged at 0900 GMT on Tuesday, following a 12% increase earlier in the year. Analysts at Jefferies noted the stock’s “strong run” ahead of the latest report and anticipated subdued performance on Tuesday.
Recognized as a bellwether in its industry due to its broad customer base and relatively short order-to-delivery lead times for cutting tools, Sandvik reported a 15% organic increase in group order intake to SEK 32.7 billion.
Widing informed reporters that the company expanded its delivery capacity to match the mining order book and confirmed ongoing efforts to meet elevated demand.
In the Machining and Intelligent Manufacturing business—which accounts for about 40% of group revenue—Sandvik recorded robust demand for cutting tools from the aerospace sector in the fourth quarter, while automotive demand remained soft.
The company stated that orders for cutting tools have remained stable in the first quarter of 2026 thus far.
Lastly, Sandvik proposed a dividend of SEK 6.00 per share for 2025, up from SEK 5.75 the previous year and surpassing the forecast of SEK 5.93.
