SKF reported an adjusted operating margin of 13.9% for the second quarter of 2026, an improvement from 13.3% in the same period last year, driven by solid commercial execution and strengthened profitability in Specialized Industrial Solutions (SIS). Net sales for Q2 2026 reached MSEK 23,195, representing organic growth of 1.4%, while the adjusted operating profit rose to MSEK 3,223. The company noted that growth in the industrial segments offset negative market demand in the Automotive business.

Financial Performance

The company's net profit for Q2 2026 stood at MSEK 1,329, a significant increase from MSEK 583 in Q2 2025. Basic earnings per share increased to 2.77 from 1.13 in the prior year. For the half-year period, net sales were MSEK 45,068 compared to MSEK 47,132 in the previous year, with an adjusted operating margin of 13.7%.

Operational Highlights

Rickard Gustafson, President and CEO, attributed the margin improvement to strong performance in SIS, particularly in Aerospace and Magnetic Solutions. Although the Automotive segment faced continued weakness, growth in China remained strong. Savings from rightsizing activities of approximately MSEK 350 offset separation-related negative synergies. The company also largely compensated for tariff-related costs during the quarter.

Strategic Developments

SKF is progressing the separation of its Automotive business, which now operates as a standalone entity within the Group. The company remains on track for a planned listing in Q4 2026, subject to board and shareholder approval. Concurrently, SKF is strengthening its industrial business through a humanoids partnership with Leaderdrive and a modernization of its IT landscape to support AI capabilities.

Outlook

For Q3 2026, SKF expects organic sales to strengthen somewhat year-over-year, citing signs of improved market demand in certain industries during Q2. However, the company cautioned that geopolitical turmoil amplifies overall unpredictability. Guidance for the full year 2026 includes a tax level of around 29% and additions to property, plant, and equipment of around BSEK 4.

SKF India Limited has fixed Friday, July 3, 2026, as the record date to determine shareholder eligibility for a final dividend of Rs 40 per equity share for the financial year ended March 31, 2026. The Board of Directors recommended this dividend at its meeting on May 13, 2026, subject to approval by shareholders at the upcoming Annual General Meeting (AGM).

The company announced that its 65th AGM will be held on Friday, August 14, 2026, at 1:00 P.M. (IST) via video conferencing and other audio-visual means. The physical presence of members has been dispensed with for the meeting. The notice of the AGM and the Annual Report for FY 2025-26 will be sent electronically to members with registered email addresses and made available on the company’s website.

Key Meeting Dates

Members holding shares in either physical or electronic form as on the cut-off date of August 7, 2026, are eligible to cast their votes electronically. The remote e-voting facility will be available from August 11 to August 13, 2026. The facility to join the AGM via video conferencing will open 15 minutes before the scheduled start time.

The company has advised members who have not registered their email addresses or updated bank account details to do so to ensure they receive communications and dividend payments electronically. Dividends will be paid through electronic mode to members with registered bank accounts, provided they are KYC compliant. The company noted that dividends are taxable in the hands of shareholders and tax will be deducted at source as per the Income-Tax Act, 2025.