Q2 2026 Call & Print: Demand gradually improving, Margins intact, Auto spin looming

Research evidence excerpt

Q2 2026 Call & Print: Demand gradually improving, Margins intact, Auto spin looming

harmonic drives, last week. This gives SKF exposure to the industrial humanoid

market. LeaderDrive is the #1 supplier of harmonic drives in China and #2 globally

(after Harmonic Drive Systems Inc). SKF can now play in c80% of the bearing

market for humanoids (cross-rollers, flexible bearings, thin section and new

bearings). SKF noted it does not have exposure to miniature bearings but it

continues to assess opportunities here. SKF has 60% ownership of the JV and will

retain future IP. Expected to be operational by end of 2026. SKF will be the key

supplier to LeaderDrive but does not have exclusivity.

Automotive listing: Progressing as planned with Automotive now structurally

separated. On track for listing during Q4.

Savings: Savings were SEK 300m in Q1 and SEK 350m in Q2, with a net positive

impact in Q2, net of negative synergies. Negative synergies are expected to

progress at the same pace, while savings will go forward at a linear rate, hence the

net impact for H2 is expected to be small positive, however we note tougher

comps in Q4.

Tariff impact: The majority of refunds received in Q2. Slight positive impact. SKF

has not yet paid this out to its customers - this will come in H2.

Demand development: Guidance is based on somewhat increased activity level

especially among OEMs and particularly in Americas. SKF expects to maintain solid

demand in China and India. SKF noted that it sees some improvements in early Q3

in Europe but not to the same extent as Americas.

Price-Cost: Have been selective with price increases, taking price increases in

certain geographies to compensate for energy costs. This has not had an impact

yet but will do going forward.