GOTHENBURG, Sweden, Nov. 11, 2025 /PRNewswire/ — SKF is hosting its Capital Markets Day in Stockholm today. At the event, deeper insights are provided into the strategic direction of both the Industrial and the Automotive businesses post the planned separation of Automotive from SKF Group. Given different business dynamics, manufacturing processes, end markets and success drivers for the Industrial and Automotive business segments, significant value is expected to be unlocked by being two standalone businesses.
“We are creating two even sharper businesses with a clearer focus on distinct opportunities to enhance customer value, accelerate growth, as well as improve efficiency and competitiveness,” says Rickard Gustafson, President and CEO.
The increased value creation that the separation of the Automotive business is expected to bring is reflected in the new long-term targets and indicative objectives post separation for the Industrial and Automotive businesses respectively.
New financial targets
The long-term financial targets over a business cycle for SKF Group post separation of Automotive, i.e. the Industrial business, which are presented at the Capital Markets Day, are:
Organic growth[1]: 4justed operating margin: >17% mid-term, >19% long-termCash conversion[2]: 60justed return on capital employed (ROCE): 20%Net leverage[3]: <2.0xDividend[4]: 50%
SKF also reconfirms its sustainability targets to decarbonize its own operations by 2030 and reach net-zero supply chain by 2050.
The Industrial business has a resilient foundation with diversified industry verticals, strong geographical coverage and an aftermarket business representing more than half of net sales. To create even more progress, SKF Industrial will reignite growth through high-growth industries and geographies, by scaling services and intelligent solutions, accelerating the Specialized Industrial Solutions business, and exploring small bolt-on M&A opportunities. Moreover, it will continue to drive innovation leadership by differentiating through customer-centric innovation. Lastly, the strategy aims at further strengthening SKF's business-driven value chain through finalizing the ongoing regionalization and footprint optimization efforts as well as continued optimizing of the supply chain.
Financial objectives for the Automotive business
SKF's Automotive business is a well-positioned global player in key growth segments and geographies. After the separation, SKF Automotive will be able to steer investments into high-growth and margin accretive areas while also establishing a leaner and more cost-efficient setup, in line with automotive best practice. The focus will be to continue winning in leading segments, maintaining and strengthening leadership in innovation, and expanding the addressable market. A lean company setup and an automotive-adapted value chain will increase both speed and efficiency in the business.
The long-term indicative financial objectives for the Automotive business post separation are:
Organic growth: Above market over a business cycleAdjusted operating margin: High single digitNet leverage[5]:
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