Long-term financial targets
Sandvik has long-term financial targets focusing on growth, profitability, dividend and financial position.
A growth of 7% through a business cycle, organically and through acquisitions, in fixed currency
Adjusted EBITA range: 20–22%
An adjusted EBITA range of 20–22% through a business cycle, adjusted for IAC
Financial net debt/EBITDA: <1.5
A net debt/EBITDA <1.5, excluding transformational acquisitions
Dividend payout ratio: 50%
A dividend payout ratio of 50% of EPS through a business cycle, adjusted for IAC
Previous financial targets and outcome
A growth of ≥5 percent through a business cycle, organically and through acquisitions.
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%
A trough EBIT margin of ≥16 percent rolling 12 months, adjusted for items affecting comparability and metal prices.
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%
A dividend payout ratio of 50 percent of earnings per share, adjusted for items affecting comparability, through a business cycle.
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
A net debt/equity ratio below 0.5.
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.