Financial targets
Sandvik has long-term financial targets focusing on growth, profitability, financial position and dividend.
Growth
Target
A growth of 7 percent through a business cycle, organically and through acquisitions.
Outcome
A revenue growth (CAGR vs 2019) of 7 percent. In 2024, total growth at fixed exchange rates was –1 percent, of which organic growth was –2 percent. Revenue growth was 9 percent over a three-year period and 7 percent over a five-year period.
Revenue growth, %
EBITA margin range
Target
An adjusted EBITA margin range through a business cycle of 20–22 percent.
Outcome
The adjusted EBITA margin amounted to 19.2 percent (20.0).
Adjusted EBITA margin, %
Financial net debt/EBITDA
Target
A financial net debt/EBITDA ratio below 1.5.
Outcome
The target was achieved as the financial net debt/EBITDA ratio was 1.2 (1.2).
Financial net debt/EBITDA ratio
Dividend payout ratio1)
Target
A dividend payout ratio of 50 percent of earnings per share, adjusted for items affecting comparability, through a business cycle.
Outcome
A solid performance in 2024 resulted in a proposed dividend of SEK 7.2 billion (6.9) corresponding to a payout ratio of 48 percent. The average payout ratio for a three-year period amounted to 44 percent and for a five-year period to 49 percent.
Dividend payout ratio, %
1) The dividend payout ratio is only related to cash dividends and does not consider the distributed value from Alleima to shareholders in 2022. The ratio is calculated on adjusted earnings per share, diluted, for the total Group for all years except 2022, when it excludes earnings related to Alleima.