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SKF had revenue of SEK 91.6bn in 2025. That is 4% more a year since 2020.

Bearings sit in almost everything that turns, from wind turbines and trains to paper machines. The industrial business, which stays in SKF, has a higher margin than automotive, and much of it is sold through distributors as replacement parts. The annual report figures below cover the whole group including automotive; the latest report shows only the continuing business.

Revenue from the group income statement in the annual report (ESEF). Growth is the average annual change.

Of every 100 in sales, 8 became operating profit in 2025. Over the period it has ranged from 8 to 13.

On average, 164% of profit arrived as cash over the period.

Operating margin = operating profit divided by revenue. Cash conversion = cash flow from operations divided by net profit.

Earnings per share went from SEK 9.44 in 2020 to SEK 8.62 in 2025. Dividends took 107% of owner earnings over the last 5 years.

The share count has been roughly unchanged.

Owner earnings = cash flow from operations, minus investment in tangible and intangible assets, minus lease repayments. Share count is derived as net profit divided by earnings per share.

Return on capital employed was 9% after tax in 2025. Net debt is SEK 12.1bn.

Return on capital employed has ranged from 9% to 9% after tax over the period.

SKF had net debt of SEK 12.1bn at the start of 2026, on its own measure, which includes pension liabilities. Without pensions the debt is just over half that size.

Industrial customers in energy, mining, food and rail, among others, and distributors who sell on to maintenance departments. They buy on service life and reliability, because a breakdown costs more than the bearing.

Return on capital employed = operating profit after 20.6% Swedish tax, divided by equity plus net debt at year end.

Today's price needs owner earnings to grow 9% a year for ten years. Revenue has grown 4% a year.

Market value SEK 123bn, enterprise value SEK 135bn. Base: owner earnings of SEK 5.2bn a year on average over the last three years, an owner earnings yield of 3.9%.

Reverse discounted cash flow. Enterprise value = market value plus net debt. The base is average owner earnings over the last three years. Required return 9%, 10 years, then 2.5% growth.