3 hours ago
SKF today announces the introduction of a new segment reporting structure, effective from Q1 2026. These changes aim to reflect the Group's strategic focus and provide increased transparency ahead of the planned separation of the Automotive business. SKF is also publishing restated financial information for the new segments for 2024 and 2025.
New segment structure
Under the new structure, SKF will report three business segments: two industrial segments – Bearing Solutions and Specialized Industrial Solutions (SIS) – and one Automotive segment. SIS includes, as previously communicated, the stand-alone and strategic core businesses Aerospace, Lubrication Lifetime Solutions, Sealing Solutions, and Magnetic Solutions.
In addition to the three business segments, corporate function costs and internal sales between the Industrial segments and the Automotive segment will be reported under "Other." Previously, these costs and transactions were included within the business segments. From 2026, the Automotive segment will carry its own central costs, which will be reported within the Automotive segment.
Restated figures reflecting changes in financial reporting and business transfers
The restated figures for 2024 and 2025 released today are presented to enable comparability and illustrate how the new segment reporting structure would have appeared historically.
As part of the new reporting structure, SKF's sealing business for automotive applications is transferred from the Automotive segment to SIS. This transfer is solely a financial reporting change, as operational responsibility has always been within the Seals business. This alignment means both operations and reporting for this business are now consistent. Consequently, sales for the Automotive segment in 2025 decrease by BSEK 2.4.
Additionally, the restated financials reflect all separation-related business transfers, such as production capacity and logistics centres, from Industrial to Automotive. This adjustment aims to represent, as accurately as possible, the Automotive footprint at the point of separation. As previously communicated, SKF's objective is to list the Automotive business on Nasdaq Stockholm during Q4 2026, subject to the Board of Directors proposing a distribution and listing of the Automotive business and obtaining shareholders' approval.
New customer industry breakdown
The new business segment reporting does not change the customer industry breakdown for the Automotive segment. For the Industrial operation, combining Bearing Solutions and SIS, a revised customer industry breakdown is introduced, including seven main industry groups: Aftermarket & service; Industrial mobility and defence; High-speed machinery and electrical; Heavy industries; Sustainable food supply; Advanced technology; and Other OEM.
