Sandvik gets a boost from safe-haven gold boom

Swedish mining equipment and metal-cutting tool maker Sandvik reported slightly larger-than-expected fourth-quarter core profit on Tuesday and proposed a higher dividend, after mining activity and commodity prices increased demand.

Operating profit before amortization and items affecting comparability rose 1% from a year-earlier to 6.37 billion crowns ($712.5 million) against a mean forecast of 6.22 billion in an LSEG poll of analysts, on organic sales growth of 12%.

“The positive momentum in mining continued during the fourth quarter, and we noted a high interest in both surface and underground applications,” CEO Stefan Widing said in a statement.

Gold and copper account for around 60% of Sandvik’s commodity exposure in its mining business, its largest business operation, and strong price gains in the two metals have boosted orders for the company’s equipment, sending its stock up 51% last year.

Shares flat after ‘strong run’

The stock was broadly flat at 09:00 GMT on Tuesday, after rising 12% during the first weeks of the year.

Jefferies analysts noted that the share had a “strong run” leading up to the report, and expected the stock to be soft on Tuesday.

Sandvik is regarded in the industry as a bellwether due to its broad customer base and relatively short lead times from order booking to delivery of its cutting tools. It said group order intake rose 15% on an organic basis to 32.7 billion crowns.

Widing told reporters the company had increased delivery capacity to meet the mining order book, and that it would continue to ensure that it could meet the demand.

In the Machining and Intelligent Manufacturing business, which accounts for around 40% of group revenue, it noted strong demand for cutting tools from the aerospace industry in the fourth quarter, while demand from the automotive sector remained subdued.

The group said orders for its cutting tools were stable so far in the first quarter of 2026.

It proposed a dividend of 6.00 crowns per share for 2025, up from 5.75 crowns the year before and beating a forecast 5.93 crowns.

($1 = 8.9406 Swedish crowns)

(By Greta Rosen Fondahn; Editing by Anna Ringstrom and Barbara Lewis)