Financial targets

Sandvik has long-term financial targets focusing on growth, profitability, dividend and financial position.

Growth 7%

Target

A growth of 7 percent through a business cycle, organically and through acquisitions.

Outcome 2022: 21%

In 2022, total growth at fixed exchange rates was 21 percent, of which organic growth was 8 percent. Revenue growth during a three-year period was 8 percent and during a five-year period 9 percent.

Read about how our solid financial position supports our shift to growth

EBITA margin range 20–22%

Target

An adjusted EBITA margin range of 20–22 percent.

Outcome 2022: 20.0%

The adjusted EBITA margin amounted to 20.0 percent (20.8), in line with the target.

Dividend payout ratio* 50%

Target

A dividend payout ratio of 50 percent of earnings per share, adjusted for items affecting comparability, through a business cycle.

Outcome 2022: 42%

A solid performance in 2022 resulted in a proposed dividend of SEK 6.3 billion (6.0) corresponding to a payout ratio of 42 percent. The average payout ratio for a three-year period amounted to 51 percent and for a five-year period to 39 percent.

Financial net debt/EBITDA <1.5

Target

A financial net debt/EBITDA below 1.5.

Outcome 2022: 1.3

The target was achieved as the financial net debt/EBITDA ratio was 1.3.

All figures except financial net debt/EBITDA are excluding Sandvik Materials Technology/Alleima and other operations.

*The dividend payout ratio is only related to cash dividends and does not consider the distributed value from Alleima to shareholders. The ratio is calculated on adjusted earnings per share, diluted, for the total group all years except 2022 when it excludes earnings related to Alleima.