Sandvik Beats Profit Forecasts on Strong Mining Demand

January 28, 2026January 28, 2026 Constance

Sandvik Reports Strong Q4 Core Profit as Mining Activity and Metal Prices Lift Demand

Swedish mining equipment and metal-cutting tool maker Sandvik reported a slightly stronger-than-expected fourth-quarter core profit on Tuesday and proposed a higher dividend, supported by rising mining activity and stronger commodity prices.

Operating profit before amortization and items affecting comparability rose 1% year-on-year to 6.37 billion Swedish crowns ($712.5 million), exceeding the average analyst forecast of 6.22 billion crowns, according to an LSEG poll. The result was driven by 12% organic sales growth during the quarter.

“The positive momentum in mining continued during the fourth quarter, and we noted strong interest in both surface and underground applications,” Chief Executive Officer Stefan Widing said in a statement.

Mining is Sandvik’s largest business segment, with gold and copper accounting for roughly 60% of its commodity exposure. Rising prices for both metals boosted demand for the company’s equipment, helping drive its shares up 51% in 2025.

Shares Flat After Strong Run

Despite the solid results, Sandvik’s shares were broadly flat at around 09:00 GMT, following a 12% rise in the first weeks of the year.

Analysts at Jefferies noted that the stock had enjoyed a “strong run” ahead of the earnings report and expected limited upside in the short term.

Sandvik is widely regarded as an industry bellwether due to its broad customer base and relatively short lead times from order intake to delivery, particularly in cutting tools.

The company reported that group order intake rose 15% organically to 32.7 billion crowns in the quarter.

Widing told reporters that Sandvik had increased delivery capacity to meet its growing mining order book and would continue to invest to ensure it can keep pace with demand.

In the Machining and Intelligent Manufacturing segment which accounts for around 40% of group revenue—Sandvik reported strong demand from the aerospace industry during the fourth quarter.

However, demand from the automotive sector remained subdued. The company said orders for cutting tools have remained stable so far in the first quarter of 2026.

Sandvik proposed a dividend of 6.00 crowns per share for 2025, up from 5.75 crowns the previous year and above analysts’ forecast of 5.93 crowns.

($1 = 8.9406 Swedish crowns)