Sandvik CEO Stefan Widing says the Swedish equipment and technology major is seeing a “structural contribution” to revenues from a growing population of technologically-advanced mining machines deployed around the world.
“They are all automation-ready, have a much more advanced control system; they have more sensors, etc, which means the total amount of service needed per machine has also structurally increased,” he told analysts after Sandvik announced a 29% year-on-year increase in third-quarter revenues to SEK37,728 million (US$3.8 billion).
Mining revenues were 22% higher yoy at SEK19,525 million (US$1.96 billion), with 67% of the total categorised as aftermarket.
“On top of that,” said Widing, “with these more advanced machines we tend to get a higher share of that service because you cannot do it yourself, or you cannot bring in some third-party local firm to do it. You basically need to have the tools and knowledge that we have. So that is also a structural element to this.”
Sandvik’s revenues for the first nine months of 2026 totalled SEK105.16 billion (US$10.58 billion), up 19% yoy. Order intake for the period was 16% higher yoy at SEK111.5 billion (US$11.22 billion).
Net profit for the first three quarters was SEK14.855 billion (US$1.49 billion), up 42% yoy.
Mining revenues were 17% higher yoy at SEK53.26 billion (US$5.36 billion) while orders climbed 13% in the first nine months of 2026.
“We think this was a very good quarter,” Widing said.
“We see broad-based demand. We have strong operational execution. The profit margin is above our target range. We also have a record high cash flow in the quarter.
“Total order intake grew by 20%. The organic order intake growth was 17%. Total revenue growth was 29%.
“Adjusted EBITA come in around SEK8.5 billion. This corresponds to a margin of 22.5%, up from 19% in the prior year period. The rolling 12-month EBITA margin is now at 21.3%.
“On the mining side we had our Future of Mining event with over 600 customers in the quarter.
“There we launched our concept surface drill rig, which showcases the future of surface mining. This is a fully automated and battery electric machine combining AI, robotics, electrification and digital connectivity.
“It shows our vision for how we think surface mining will develop in the future.”
Mining aftermarket growth was also being driven by “high production levels in combination with an aging fleet, which drives even more demand for service and aftermarket, and in combination with the fact that our fleet has increased over the last couple of years due to strong demand for new equipment”.
