Sandvik Ab Stock Price, News & Analysis

Sandvik has secured a SEK 135 million order for mining equipment from Canadian gold mining company New Gold. This order includes four battery-electric vehicles (BEVs), specifically Sandvik LH518B loaders, to be utilized at the New Afton underground gold-copper mine in British Columbia. The mine has previously operated a Sandvik LH518 loader for over two years in a trial, leading to improved cycle times and reduced heat, noise, and greenhouse gas emissions. Mats Eriksson, President of Sandvik Mining and Rock Solutions, noted this expansion highlights the advantages of their equipment in terms of productivity, safety, and sustainability.

On January 20, 2023, Sandvik Aktiebolag reported strong Q4 2022 results with an 11% revenue growth, reaching SEK 31,094 million. Order intake rose to SEK 30,751 million with a 3% growth at fixed exchange rates. Adjusted EBITA climbed to SEK 6,413 million, marking a 20.6% margin. Adjusted earnings per share increased to SEK 3.22, while a dividend of 5.00 SEK per share was proposed. Free operating cash flow was significantly improved at SEK 6,226 million, showcasing robust financial health for the company.

On January 18, 2023, Sandvik signed a EUR 500 million loan agreement with the European Investment Bank to enhance its research and development (R&D) initiatives. The funding will focus on advanced solutions in component manufacturing, as well as electrification and automation in mining and infrastructure. This cooperation aims to improve sustainability, productivity, and safety across Sandvik's core industries. The loan has a seven-year tenor and supports Sandvik's R&D investment plans through 2025, reinforcing the company's commitment to technology leadership.

Sandvik will release its fourth quarter results on January 20, 2023, at 08:00 AM CET. The results will be discussed in a combined webcast and conference call at 10:00 AM CET, featuring CEO Stefan Widing and CFO Cecilia Felton. Presentation slides will be accessible from 9:30 AM CET on their website. Interested parties can join via dial-in numbers provided for Sweden, the UK, and the US. For more details, contact Louise Tjeder or Johannes Hellström.

Sandvik has secured a significant order valued at SEK 210 million from JCHX Mining Management Co., Ltd. for mining equipment at the Kamoa-Kakula and Kamoya copper and cobalt mines in the Democratic Republic of the Congo. The order will contribute to the company’s fourth quarter 2022 financials, with equipment deliveries expected throughout 2023, marking continued demand for Sandvik's advanced mining solutions. Mats Eriksson, President of Sandvik Mining and Rock Solutions, emphasized the order's validation of their intelligent mining equipment's strength and quality.

Sandvik has signed an agreement to acquire Polymathian Industrial Mathematics, an Australia-based provider of advanced mine optimization software. This acquisition strengthens Sandvik's offerings in digital mining technologies and complements its earlier acquisition of Deswik. Polymathian's solutions enhance automated decision-making and process optimization for major mining companies. As of June 2022, Polymathian reported annual revenues of around SEK 100 million with a 40% EBITA margin. The deal is expected to close in Q1 2023, with a positive impact on Sandvik's earnings per share.

On November 1, 2022, Sandvik completed the acquisition of the mining business of Schenck Process Group, a leader in screening, feeding, and train loading solutions. The acquisition is expected to generate approximately EUR 200 million in revenue for 2022, with around 70% from aftermarket services. Strong synergies are anticipated, driving a mid- to high-single digit revenue growth above market growth. The acquisition will be reported under Sandvik Rock Processing Solutions, with a neutral initial impact on earnings per share and an EV/EBITDA multiple of about 10x.

Sandvik Aktiebolag reported a robust third quarter for 2022 with significant growth metrics. Order intake reached SEK 29,231 million, reflecting a 16% increase at fixed exchange rates. Revenues increased by 22% to SEK 29,267 million. Adjusted EBITA rose to SEK 5,889 million, marking an adjusted EBITA margin of 20.1%. Despite revenue growth, profit for the period slightly declined to SEK 3,396 million. The adjusted profit for the period was SEK 3,913 million with diluted earnings per share at SEK 2.71.

Sandvik will release its third quarter results on October 17, 2022, at approximately 11:30 AM CEST. A combined webcast and conference call will follow at 1:00 PM CEST, hosted by President and CEO Stefan Widing and CFO Cecilia Felton. The presentation will be available live on Sandvik's website. Dial-in details for the call are provided for participants from Sweden, the UK, and the US. Presentation slides will be available on the website starting at 12:30 PM CEST.