Early look at Q2’26 Results: Tungsten tailwind the key watch point

Research evidence excerpt

Early look at Q2’26 Results: Tungsten tailwind the key watch point

J P M O R G A N Europe Equity Research

07 July 2026

Sandvik Overweight

SAND.ST, SAND SS

Early look at Q2’26 Results: Tungsten tailwind the key Price (06 Jul 26):Skr405.30

watch point ▲Price Target (Dec-27):Skr460.00 Prior (Jun-27):Skr450.00

Sandvik will report Q2’26 results on 17 July and we update our model and view,

incorporating our discussions with the company, top-down data and peer reporting. European Capital Goods

On the Q2, we are 4% / 6% / 10% ahead of standing consensus (Infront) on orders Chitrita C Sinha AC

/ sales / Adj. EBITA, driven largely by Machining and better FX. The tungsten (44-20) 7742-7176

impact is the key topic of debate in our conversations and the expectation is for Q2 chitrita.sinha@jpmorgan.com

J.P. Morgan Securities plc

to see a significant tailwind in both Powder and Cutting Tools given the price/cost

Phil Bullerdynamics (see Table 1 for more details). We model a conservative 44% order

(44-20) 3493-9403

organic growth in Machining but see considerable upside. Beyond Q2, the price/ phil.buller@jpmorgan.com

cost dynamics should remain positive for Cutting tools in Q3 (albeit negative in J.P. Morgan Securities plc

Powder) and we look for comments on market share developments in this business. Akash Gupta

Elsewhere, Mining announcements have been strong (amounting to Skr1.94bn) (44-20) 7742-7978

and a contrast to Epiroc which has not announced a large order in Q2 (although we akash.z.gupta@jpmorgan.com

believe the momentum is strong there too). The recent outperformance has been led J.P. Morgan Securities plc

by elevated expectations on tungsten but despite this, we see room for further Jeremy Caspar

upside surprise given the magnitude of the tungsten move.