Long-term financial targets
Sandvik has long-term financial targets focusing on growth, profitability, dividend and financial position.
Growth1): ≥5%
Target
A growth of ≥5 percent through a business cycle, organically and through acquisitions.
Read about how our solid financial position supports our shift to growth
Outcome 2021: 5%
The revenue growth 2016–2021 was 5 percent. In 2021 the organic growth was 12 percent, and total growth, at fixed exchange rates, was 18 percent.
Trough EBIT margin: ≥16%
Target
A trough EBIT margin of ≥16 percent rolling 12 months, adjusted for items affecting comparability and metal prices.
Read more about how we will achieve our trough EBIT margin target
Outcome 2021: 18.3%
The EBIT margin, adjusted for items affecting comparability and metal prices, amounted to 18.3 percent in 2021. The EBITA margin amounted to 19.1 percent.
Dividend1) payout ratio: 50%
Target
A dividend payout ratio of 50 percent of earnings per share, adjusted for items affecting comparability, through a business cycle.
Read more about our commitment to generating maximum shareholder value
Outcome 2021: 44%
The average payout ratio in 2016–2021 amounted to 44 percent. A solid performance in 2021 resulted in a proposed dividend of SEK 6 billion (8), corresponding to a payout ratio of 42 percent.
Net debt/equity ratio: <0.5
Target
A net debt/equity ratio below 0.5.
Read more about debt and funding strategy
Outcome 2021: 0.35
The target was achieved as the net debt to equity ratio was 0.35.
1) The growth and dividend payout ratio targets refer to average through a business cycle, defined as 2016–2021.