SKF Shares Fall 5% on Cautious Outlook

SKF Shares Fall 5% on Cautious Outlook

Swedish bearings manufacturer AB SKF A reported Q2 2026 results that showed an improvement in profitability, with adjusted operating profit increasing to SEK 3.22 billion from SEK 3.09 billion a year earlier, lifting the adjusted operating margin to 13.9% from 13.3%. Net profit more than doubled to SEK 1.33 billion and operating profit rose to SEK 2.22 billion from SEK 1.30 billion, helped by lower restructuring charges. Sales were broadly flat, but the Specialized Industrial Solutions segment delivered strong commercial execution, and growth was seen in aerospace, magnetic solutions and aftermarket activities, which offset continued softness in automotive demand. Ongoing cost‑saving measures and pricing actions largely offset tariff‑related costs, and the company continues preparations to separate its automotive business.

Despite the earnings beat, the market reacted negatively; the shares slipped 5.1% to SEK 249.5, underperforming the OMX Stockholm All Share Cap GI index, which fell 0.3%. Management signalled only a modest improvement in demand for the third quarter, expecting organic sales to strengthen somewhat year‑over‑year and citing early signs of improving demand in some industrial markets. However, it warned that geopolitical tensions, including the conflict in the Middle East, continue to cloud the outlook.

The full‑year guidance was adjusted: capital‑expenditure target was narrowed to around SEK 4 billion from the previous SEK 5 billion, and the underlying tax‑rate assumption was raised to roughly 29% from 28%.