SKF Reports Margin Improvement in Q2 2026 Amid Mixed Sales
SKF reported a slight organic sales increase and a better adjusted operating margin in Q2 2026. The separation of the automotive business impacted cash flow.
GOTHENBURG, Sweden – SKF reported its second-quarter 2026 financial results, showing a modest organic sales increase and an improved adjusted operating profit margin. The company's net sales reached SEK 23,195 million, indicating stability compared to the previous year.
Organic sales grew by 1.4%, primarily driven by strong performance in industrial segments such as Aerospace and Magnetic Solutions. This growth compensated for weaker demand in the automotive sector, despite robust growth in the Chinese market. The adjusted operating margin improved to 13.9% from 13.3% year-over-year, attributed by SKF to strong commercial execution, particularly within Specialized Industrial Solutions.
The separation of the automotive business also affected operating cash flow, which decreased to SEK 2,055 million from SEK 2,817 million in the prior year. This was due to an increase in working capital linked to the ongoing separation of the automotive division. SKF continues preparations for the planned spin-off of its automotive business, scheduled for the fourth quarter of 2026.
For the third quarter of 2026, SKF anticipates a slight strengthening of organic sales year-over-year, based on signs of improved market demand in certain industries observed in the second quarter. However, the company noted that geopolitical tensions, including the conflict in the Middle East, are increasing overall unpredictability.