AB SKF Stock Price, News & Analysis

SKF AB S/ADR (SKFRY) represents shares of Aktiebolaget SKF, a manufacturing company in the ball and roller bearing industry. According to recent company communications, SKF operates an Industrial business and an Automotive business, and is preparing a separation of its Automotive operations with the objective of a separate listing on Nasdaq Stockholm through a Lex Asea distribution to its shareholders. The company is based in Gothenburg, Sweden, and communicates regularly with investors through quarterly reports, annual general meetings and capital markets events.

SKF’s activities are described in its reports as divided into an Industrial segment and an Automotive segment. The Industrial business serves targeted markets such as aerospace, lubrication and magnetics, and includes Specialized Industrial Solutions and stand-alone businesses. The Automotive business focuses on automotive-related applications and is being prepared for separation into an independent, fit-for-purpose company with its own global manufacturing footprint. SKF’s financial reporting highlights metrics such as net sales, organic growth, adjusted operating profit and adjusted operating margin for both segments.

Industrial and Automotive structure

In its Q1 and Q2 2025 reports, SKF describes the Industrial business as delivering higher adjusted operating margins than the Automotive business, supported by portfolio management, pricing activities and cost control. The Industrial segment reported organic sales growth in the second quarter of 2025, with improvements in all regions and particularly strong performance in Asia and in areas such as aerospace, lubrication and magnetics. The Automotive segment has faced challenging market conditions in several regions, with lower demand in many automotive markets except for certain areas such as electrical vehicles.

SKF is redesigning parts of its Industrial organization to increase competitiveness and accelerate profitable growth. The company has combined the Operations and Commercial excellence functions into a single function to strengthen alignment, governance and end-to-end execution across the value chain. The business area Independent and Emerging Businesses is being discontinued, and its stand-alone entities are being organized in Specialized Industrial Solutions. This is described by SKF as a way to strengthen strategic core businesses that are tailored to specific business and market needs.

Strategic separation of Automotive

SKF has announced a decision to initiate a separation of its Automotive business with the objective of a separate listing on Nasdaq Stockholm through a Lex Asea distribution to its shareholders. The company states that this contemplated spin-off is intended to facilitate a clearer focus on distinct opportunities to enhance customer value, accelerate growth and improve competitiveness. SKF also notes that it does not expect the contemplated spin-off to have a negative impact on its strategy or its operational or financial conditions, and that it does not expect the spin-off to impact the solvency of SKF.

As part of this process, SKF has launched a consent solicitation to holders of its notes in relation to the contemplated spin-off, to confirm that it will not cause an event of default under the conditions of the notes. The company emphasizes that it is seeking consent as a matter of prudence and that it does not consider that there has been an event of default under any series of the notes. The Automotive separation includes work on the operating model, organizational design and manufacturing footprint, with a finalized footprint of 16 factories for the Automotive business as described in the Q1 2025 report.

Operational efficiency and organizational changes

SKF’s communications highlight ongoing rightsizing activities and organizational reviews aimed at improving competitiveness and margin resilience. For the Industrial business, SKF has announced a rightsizing program comprising a gross reduction of approximately 1,700 positions, primarily staff positions in Europe, with an estimated net reduction of approximately 1,200 positions after re-hires related to strategic footprint shifts. The company estimates savings from these actions and notes that restructuring costs related to the program have been charged as items affecting comparability.

The redesign of the Industrial organization includes the creation of a new organization for stand-alone businesses under Specialized Industrial Solutions. Group Management changes have been announced to support this structure, including appointments to lead the new organization of stand-alone businesses and to take on combined responsibilities for commercial and operations development. The company describes these changes as a natural next step in its strategic journey as the separation of the Automotive business progresses.

Focus on margin resilience and portfolio management

In its Q1 and Q2 2025 financial updates, SKF emphasizes margin resilience in markets with mixed or weak demand. The company reports adjusted operating margins for the Group and for each segment, and attributes margin performance to pricing actions, portfolio management and cost control. SKF notes that it has worked to compensate for increased tariff costs through pricing, and that it continues to adapt its organization to rapidly changing market conditions.

The Industrial business is described as benefiting from commercial excellence, portfolio prioritization and pricing activities, with particular reference to aerospace. Following a strategic review started in 2023, SKF reports that its aerospace business has achieved annual sales growth and an increased adjusted operating margin between 2022 and 2025, and that it is positioned for future profitable growth from long-term contracts, increased aftermarket presence and an operational setup to serve customers effectively. SKF indicates that similar commercial initiatives are being pursued in other parts of the Industrial business.

Manufacturing capabilities and magnetic bearings

SKF has communicated investments in manufacturing capabilities to meet demand in specific technologies. The company has inaugurated a factory in Tangier, Morocco, to manufacture components for magnetic bearings and high-speed electric motors. SKF states that this factory will enable the production of modular and scalable products that can be integrated into various applications. The company describes magnetic solutions as essential for high-speed machinery such as compressors, turbines, motors, HVAC systems and semiconductors, due to their ability to operate efficiently at high speeds, free of friction and with minimal maintenance.

SKF explains that magnetic bearings allow the contactless levitation of rotors through a controlled magnetic field, and that its magnetic solutions enable industrial applications to achieve high performance, energy efficiency and reliability compared to conventional technological solutions. By minimizing friction and eliminating the need for lubrication, SKF’s magnetic solutions are described as reducing the carbon footprint of industrial machinery and playing a role in emerging sustainable energy sectors.

Sustainability, climate ratings and governance

SKF has reported recognition from CDP, a global non-profit that runs an environmental disclosure system. The company has been awarded an A score in the 2024 CDP Supplier Engagement Assessment, placing it among companies recognized for supplier climate action and transparency. SKF also reports having received an A rating from CDP for climate, and notes that it achieved top scores across categories such as governance and business strategy, targets, Scope 3 emissions and supplier engagement.

According to its communications, SKF has committed to achieving net-zero greenhouse gas emissions across its supply chain by 2050. The company reports progress toward a decarbonized operations target and describes emission reductions for scope 1 and 2 emissions, as well as increased use of renewable electricity. SKF presents these developments as part of its environmental leadership across operations and the supply chain, and as evidence of its engagement with suppliers on climate-related issues.

Corporate governance information is provided through announcements about the Annual General Meeting of Aktiebolaget SKF. The company reports on decisions such as the adoption of income statements and balance sheets, approval of dividends, discharge from liability for Board members and the CEO, election and re-election of Board members, and the establishment of Board committees. The Annual General Meeting has approved Board fees and committee fees, as well as a Performance Share Programme that can allot SKF B shares to senior managers and key employees based on performance measures such as Total Value Added and the CDP Climate Change score.

Share structure and investor information

SKF has communicated changes in the total number of votes resulting from conversions of shares from Series A to Series B in accordance with its Articles of Association. The company reports the total number of shares, the distribution between Series A and Series B shares, and the total number of votes. It also notes that AB SKF does not hold any own shares. Information about quarterly reports, webcasts, and investor materials is made available through the company’s investor relations channels.

For investors analyzing SKFRY, these communications provide insight into SKF’s segment structure, strategic separation of the Automotive business, focus on Industrial competitiveness, manufacturing investments in areas such as magnetic bearings, sustainability commitments, corporate governance practices and share structure. The company’s emphasis on margin resilience, portfolio management and organizational alignment across the value chain is a recurring theme in its updates.