Sandvik’s industrial portfolio: orders, cutting tools and mining equipment

Sandvik’s industrial portfolio links cutting tools, manufacturing software, mining equipment and mineral processing.

Orders rise but miss expectations

Sandvik's second-quarter 2026 results combined rising industrial demand with an order intake below market expectations. The metal-cutting-tool and mining-equipment manufacturer reported adjusted operating profit before amortisation of 8.31 billion Swedish kronor, compared with 5.63 billion a year earlier and a 7.80 billion kronor average forecast in an LSEG poll. Organic orders increased 17%, while organic sales grew 23%. J.P. Morgan analysts said the market had expected a larger order increase, with Machining accounting for the biggest shortfall. Chief executive Stefan Widing described mining demand as strong and underlying general-industry demand as improving.

The company said cutting-tool orders had remained stable so far in July. Shares were down approximately 6% at 1048 GMT on Jul 17, after trading around 1.5% lower before the report. Sandvik's published quarterly totals were 37.799 billion kronor in orders and 36.752 billion kronor in revenue.

The first-quarter comparison

The preceding quarter's release, published on Apr 22, reported orders of 36.756 billion kronor against 32.763 billion a year earlier. Order growth at fixed exchange rates and organic growth were both 23%. Revenue reached 30.685 billion kronor, compared with 29.301 billion, with growth of 15% on both those measures. Adjusted EBITA was 6.138 billion kronor, up from 5.768 billion; its margin increased from 19.7% to 20.0%. Adjusted EBIT, a separate measure, was 5.719 billion kronor and its margin was 18.6%. Profit for the period was 3.877 billion kronor, compared with 3.736 billion. Diluted earnings per share were 3.09 kronor rather than 2.97, while adjusted earnings per share were 3.27 kronor. Free operating cash flow was 3.613 billion kronor, below the previous-year 3.809 billion.

The closing quarter of 2025

The Jan 27, 2026, release provides an earlier quarterly baseline. In the fourth quarter of 2025, orders were 32.717 billion kronor, compared with 31.562 billion, and rose 15% at fixed exchange rates. Revenue was 32.461 billion kronor, against 32.151 billion, with fixed-currency growth of 12%. Adjusted EBITA reached 6.373 billion kronor from 6.288 billion, while its margin remained 19.6%. Adjusted EBIT was 5.942 billion kronor, corresponding to an 18.3% margin. Profit for the period was 4.200 billion kronor, below 4.297 billion, despite adjusted profit increasing to 4.249 billion from 4.084 billion. Free operating cash flow rose to 6.714 billion kronor from 6.463 billion. The board proposed a dividend of 6.00 kronor per share; that announcement was a proposal rather than confirmation of payment.

Sandvik

Four business areas and a manufacturing plan

At its May 2025 Capital Markets Day in Gimo, Sweden, Sandvik announced a structure separating Manufacturing and Machining Solutions into two business areas from Jan 1, 2026. The resulting areas were Mining, Rock Processing, Machining and Intelligent Manufacturing. Business-area name changes were scheduled from July 1, 2025. Sandvik said the split would sharpen attention to profitable growth and make the financial performance of the two manufacturing areas more transparent, while retaining collaboration. The same announcement set out restructuring in Machining across 2025–2030. The programme concerned the geographical manufacturing footprint, site consolidation and organisational efficiency. Sandvik expected annual run-rate savings of one billion kronor by the end of 2030, with three billion kronor of restructuring costs affecting reported EBITA across the programme. Those were savings and cost plans, with individual phases to be communicated as activities were decided and implemented.

Precision tools for optical components

On Apr 9, 2026, Sandvik announced the acquisition of an 80% holding in K&Y Diamond. The Montreal-based company made monocrystalline diamond tools for ultra-precision applications and was to be reported within Sandvik Coromant in Machining. Founded in 1976, K&Y Diamond had 45 employees and approximately 120 million kronor in 2025 revenue. Its tools were used in manufacturing spectacle lenses, contact lenses, optical lenses and optronic components. Aerospace and medical applications also required the super-finishing capabilities described in the announcement. Widing linked the purchase to Sandvik's strategy of expanding micro-precision tooling and engineering capabilities. The company expected a slightly positive effect on its EBITA margin and earnings per share, but did not disclose a purchase price. The 120 million kronor figure represented the acquired company's historical revenue, not consideration paid for the stake.

Metrology software enters the portfolio

Sandvik signed an agreement to buy Verisurf Software on Mar 10, 2025, and announced completion on June 3. Verisurf, headquartered in Anaheim, California, had 44 employees and 2024 revenue of approximately 130 million kronor, or $12 million. It principally served North America, with around 1,500 customers spanning smaller manufacturers and larger companies, including aerospace and defence businesses. Its modular software covered quality inspection, assembly guidance and reverse engineering and was built on the Mastercam Design CAD platform. Sandvik described the acquisition as an extension of its industrial-metrology and digital-manufacturing offering, particularly for small and medium-sized manufacturers. At closing, Verisurf was assigned to a separate business unit in Machining and Intelligent Manufacturing, the business-area structure then in use. The March agreement had targeted completion in the second quarter subject to customary regulatory approvals. The parties did not disclose the purchase price.

A regional software channel in Missouri

The Nov 3, 2025, acquisition of QTE Manufacturing Solutions added a different part of the software network: a reseller serving manufacturers in the US Midwest. QTE was headquartered in St. Charles, Missouri, and had 12 employees. Its 2024 annual net revenue was approximately 45 million kronor. Alongside Mastercam computer-aided-manufacturing software, it sold Verisurf 3D metrology software and Vericut CNC simulation software, both already owned by Sandvik. QTE entered the Mastercam business unit within the then-combined Machining and Intelligent Manufacturing area. Widing said the transaction would strengthen regional presence, customer support and direct sales channels. Sandvik expected a limited effect on EBITA margin and earnings per share. Its announcement did not disclose the purchase price or present the reseller's revenue as a transaction valuation.

Texas CAM operations follow

On Feb 3, 2026, Sandvik announced that it had acquired the CAM business of MLC CAD Systems, another reseller in the Mastercam network. The acquired operation was headquartered in Texas and had 21 employees. Its annual net revenue was approximately 80 million kronor in 2024. This was a purchase of the CAM business rather than an announcement that all MLC CAD Systems operations had changed ownership. It entered the Mastercam business unit in the newly separate Intelligent Manufacturing area. Widing identified stronger direct software sales, regional presence and customer-support capabilities as the objectives. Sandvik anticipated a limited effect on group EBITA margin and earnings per share. The parties agreed not to disclose the purchase price.

Direct channels in India and California

The July 7, 2026, announcement added Mastercam India and selected assets of CAD/CAM Consulting Services, known as CCCS. Both had been long-standing Mastercam channel partners. Mastercam India was headquartered in Pune, India, with 41 employees and approximately 81 million kronor in annual net revenue in 2025. California-based CCCS had 14 employees and approximately 39 million kronor in 2025 net revenue. Both acquired operations were assigned to Mastercam within Intelligent Manufacturing. Sandvik connected the purchases to stronger local capabilities, a broader regional sales network and its strategy of increasing direct channels for software. The stated effect on EBITA margin and earnings per share was limited. Purchase prices were undisclosed. The two revenue figures described the businesses' previous-year sales, while the description of selected CCCS assets defined the scope of that part of the transaction.

A proposed move into filtration

Sandvik's June 22 agreement to acquire Diemme Filtration concerned downstream mineral processing. The Lugo-based Italian manufacturer supplied engineered filtration and dewatering systems, including high-performance filter presses, with an aftermarket operation and remote-monitoring and predictive-maintenance software. Sandvik planned a separate Filtration division within Rock Processing. Diemme had approximately 200 employees, manufacturing and research capabilities, and customers in copper, gold, nickel and battery-materials mining. Sandvik estimated Diemme's 2026 revenue at 1.1 billion kronor and described its EBITA margin as accretive to Rock Processing. The purchase price was not disclosed. Sandvik estimated an addressable filtration market above 20 billion kronor and expected low-double-digit market growth, citing lower ore grades, water preservation and tailings requirements. These were company market assessments. Completion was expected in the third quarter of 2026; the June agreement itself did not establish that the acquisition had closed.

Demolition attachments and recycling

OSA Demolition Equipment illustrates an earlier completed addition to Rock Processing. Sandvik announced an agreement on Apr 4, 2025, and completion on July 1. OSA manufactured demolition tools and hydraulic hammers from Molfetta, Italy, where it also had research and development capabilities. Founded in 1994, it employed 64 people and recorded approximately 150 million kronor in 2024 revenue. Its main market was Europe, with additional business in Australia and the United States. Sandvik said the product range would strengthen its demolition and recycling offering and that its distributor network could provide opportunities for expansion. OSA became a business unit within the Attachment Tools division. The original agreement had targeted third-quarter completion, subject to regulatory approvals; the July announcement confirmed that milestone. The purchase price remained undisclosed, and Sandvik anticipated a limited effect on EBITA margin and earnings per share.

Simulator training for mining operators

The Feb 12, 2026, agreement for ThoroughTec Simulation addressed equipment training. Based in Durban, South Africa, ThoroughTec had more than 200 employees and approximately 170 million kronor in 2025 revenue. It developed training simulators compatible with equipment from different manufacturers, together with a training-management system. Sandvik planned to place it within Parts and Services in Mining. The company said combining simulator training with digital data from operating machines would support customised operator programmes. Widing identified aftermarket capabilities, productivity and safety as intended benefits, rather than reporting independently measured improvements from the transaction. ThoroughTec also had an established sales and support network. The price was undisclosed. Completion was forecast during the second quarter, subject to customary regulatory approvals; that February timetable was not itself a later closing confirmation.

Equipment orders extend across several years

A July 3 announcement described an approximately 340 million kronor underground-equipment order from Mexican contractor Constructora Minera Villagómez, or CoMinVi. Sandvik booked it in the second quarter. Trucks, loaders and drill rigs were intended for several contract sites across Mexico, with deliveries expected to start during 2026 and continue through 2028. Mining president Patrick Murphy described the order as an extension of a long-standing customer relationship. The booking date and delivery window were distinct: the order entered the quarterly intake before the full equipment schedule was due to be delivered.

On June 15, Sandvik reported an approximately 350 million kronor order from Barminco for the Bellevue Gold Project in Western Australia. The second-quarter booking covered underground loaders, trucks and drill rigs, with rock tools, parts and services also to be supplied. Deliveries were expected from the third quarter of 2026 through the first quarter of 2027. Bellevue Gold Limited owned the project. Mining president Mats Eriksson linked the order to supporting its ramp-up and the existing Barminco partnership. The announcement described future deliveries rather than completed commissioning of the equipment fleet.

A larger order announced on June 4 was worth approximately 650 million kronor. China-based contractor JCHX Mining Management ordered underground equipment for the Khoemacau Copper Mine in Botswana's Kalahari Copper Belt. The second-quarter booking included loaders, trucks and drills, access to Remote Monitoring Service, and AutoMine automation for the loaders and some drills. Deliveries were expected to begin in the third quarter of 2026, with most scheduled during 2026–2028. Sandvik described the contract as support for expansion of the underground mine, combining equipment, services and digital systems within the same supply relationship.

Sorting-plant equipment has a separate timetable

Rock Processing's June 25 announcement concerned approximately 175 million kronor of equipment for LKAB's new sorting plant in Malmberget. Booked in the second quarter of 2026, the order comprised cone crushers, double-deck screens and vibrating feeders. Sandvik's Automation and Connectivity System was to be integrated with LKAB's plant controls, alongside engineered-to-order design tailored to the customer's specifications. Equipment deliveries were scheduled for the second and third quarters of 2027. The plant itself was expected to begin operating in 2028, with annual processing of 24 million tonnes of magnetite ore and one million tonnes of hematite ore. Its sequence would crush, screen and magnetically separate ore before beneficiation and conversion into fines and pellets. The equipment-delivery schedule and the plant's expected operating date therefore referred to separate stages of the project.

A planned disposal of powder manufacturing

Portfolio expansion was accompanied by a proposed disposal. On May 29, 2026, Sandvik signed an agreement to sell its Additive Manufacturing business unit to investment firm Mimir. The unit, reported within Machining, manufactured metal powders and specialised alloys. Sandvik said its assessment considered market position, growth potential and investment needs. Widing described the sale as a way to give the business a dedicated platform for its next phase. The business was classified as held for sale on the balance sheet. Sandvik expected an approximately 230 million kronor impairment, mainly relating to property, plant and equipment, with no cash effect. It was to be reported as an item affecting comparability in the second quarter. Completion was expected in the third quarter, subject to customary regulatory approvals. The unit’s stated applications included: