Sandvik reports stable 2024 financial performance amid global challenges
March 10, 2025
Sandvik AB, headquartered in Stockholm, Sweden, has released its 2024 Annual Report. Overall order intake was reported to have increased by 2% at fixed exchange rates, though revenues declined by 1% to SEK 123 billion. Adjusted Operating Profit (EBITA) was SEK 23.6 billion, corresponding to a 19.2% margin and a free-operating cash flow of SEK 21 billion.
Sandvik President and CEO Stefan Widing shared, “Our performance during the year showed that our transformation into a more resilient, flexible and fast-moving company, with an enhanced potential for long-term growth, has continued to yield results.”
R&D investments amounted to SEK 5.1 billion in 2024, corresponding to about 4% of the group’s revenue. Widing added, “We continued to build on the strong innovation pipeline across our businesses. We saw solid growth in many of the strategic areas identified as particularly important for future growth, including parts, services and consumables, software solutions for both mining and manufacturing operations, automation solutions and surface drilling operations.
“The parts, services and consumables business is a priority area for Sandvik, as it strengthens our position with customers and provides a more stable revenue and high earnings profile. Our focus in this area is clearly paying off, which was evident in 2024. Parts, services and consumables showed strong growth throughout the year, as mining customers maintained high activity in the mines. The combination, with a favourable momentum in software, is very positive as we aim to increase the share of recurring revenues in the business,” Widing continued.
In regard to sustainability, Widing highlights the need for minerals in the green energy transition. “We have an important role to play in supplying our customers with solutions to maximise output in an efficient, safe and sustainable way. The year included several strong innovations and customer collaborations that support the mining industry’s shift towards automated and electrified operations. Another example of how we drive sustainable business was this year’s winner of the ‘Sandvik Sustainability Award in Memory of Sigrid Göransson’, awarded to a digitalised solution for carbide tool buyback programmes. This sustainable business solution benefits both the customers and Sandvik, while also reducing waste,” he explained.
Sandvik Manufacturing and Machining Solutions
This business area – consisting of Sandvik Machining Solutions and Sandvik Manufacturing Solutions, which consists of Powder Solutions. Sandvik Coromant, Seco, and Walter, among others – posted a slightly reduced order intake of MSEK 49,187, down from 49,247 year on year. The area’s revenue – representing 40% of total Sandvik revenue – was also down, from MSEK 49,340 in 2023 to MSEK 48,567; most of this was generated from the engineering segment (52%), followed by automotive (14%), aerospace (10%) and other (24%).
The drop in figures was attributed to the mixed demand seen throughout 2024, with macroeconomic challenges and geopolitical unrest cited as the cause for lower industrial activity and the resultant weaker demand in general engineering. Challenges in the automotive industry were also said to have negatively affected demand for Sandvik’s solutions while aerospace continued on a positive track, despite temporary supply issues in the sector. The tougher market conditions led to overall volume declines, with the most negative impact in Europe. North America remained the most resilient region, where Sandvik reported ‘especially good momentum’ for its software solutions.
Other segments
Sandvik Rock Processing Solutions – supplying equipment, service and technical solutions for processing rock in the mining and infrastructure industries – generated a 9% share of Sandvik revenue and a 6% share of adjusted EBITA.
Sandvik Mining & Rock Solutions supplies equipment, tools, parts, digital solutions and sustainability-focused technologies for mining & infrastructure. This business area generated a 51% revenue share and 54% of adjusted EBITA.
“In 2024, we continued to build a stronger Sandvik, in a complex and challenging external environment, through solid execution of our strategic priorities. I would like to thank our employees whose outstanding efforts are the reason for this progress. I also want to extend a big thank you to our shareholders and customers for your continued trust,” Widing concluded.
The full report is available here.
