SKF — Interim / Quarterly Report 2025

Jan 30, 2026

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Laying the foundation for long-term value creation

• Net sales MSEK 21.969 (24.725)
• Organic growth 0.0% (-3.1%), driven by organic sales growth within the Industrial business, offset by negative market demand for the Automotive business.
• Adjusted operating profit MSEK 2,588 (2,735). Strong positive cost development and solid price/mix contribution nearly offset lower volumes and significant currency headwinds.

• Adjusted operating margin 11.8% (11.1%) with Industrial at 15.6% (14.6%) and Automotive at 1.7% (2.6%).

• Operating profit MSEK 1,563 (2,331). This included items affecting comparability of MSEK -1.025 (-404).

• Operating margin 7.1% (9.4%)
• Net cash flow from operating activities MSEK 2,758 (3,283), including cash flow impact from items affecting comparability of approximately BSEK -1.
• Basic earnings per share SEK 1.25 (3.31) and Adjusted earnings per share SEK 3.50 (4.20).

Financial overview

MSEK unless otherwise stated	Q4 2025	Q4 2024	2025	2024
Net sales	21,969	24,725	91,583	98,722
Organic growth, %	0.0	-3.1	-0.4	-5.4
Adjusted operating profit	2,588	2,735	11,673	12,183
Adjusted operating margin, %	11.8	11.1	12.7	12.3
Operating profit	1,563	2,331	7,755	10,339
Operating margin, %	7.1	9.4	8.5	10.5
Adjusted net profit	1,616	1,995	8,169	8,731
Net profit	591	1,591	4,249	6,887
Net cash flow from operating activities	2,758	3,283	8,392	10,792
Basic earnings per share	1.25	3.31	8.62	14.22
Adjusted earnings per share	3.50	4.20	17.23	18.27

Long-term targets¹⁾

Revenue growth²⁾

Adjusted operating margin

Net debt/Equity⁴⁾

Adjusted ROCE

Decarbonized operations⁵⁾

(scope 1 and 2)

• 1) In addition to the targets presented above, SKF has a dividend pay-out ratio target of around 50% of the Group's average net profit calculated over a business cycle. The Board has decided to propose to the 2026 Annual General Meeting a dividend of SEK 7.75 per share, to be paid in two instalments, resulting in a five-year average of 59%.
• 2) Sales excluding effects of currency and divested businesses.
• 3) Financial targets to be achieved over a business cycle.
• 4) Excluding pension liabilities.
• 5) CO₂e emissions 2030 vs 2019. Latest figures are presented for the end of the previous quarter, 12 months rolling.

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CEO Statement

In Q4 as well as for the full year 2025, I'm pleased to conclude a solid performance with an improved adjusted operating margin year-over-year, despite challenging markets. By executing on our strategy, we're laying the foundation for long-term value creation.

Continued resilient and improved margin

Throughout 2025, we navigated persistently soft market conditions and geopolitical uncertainty, including tariff-related impacts. At the same time, we remained on track with our Automotive separation process. For the full year, we delivered a resilient adjusted operating margin of 12.7%. Industrial business' margin improved, while Automotive's margin was relatively flat, year-over-year, despite a weak market and adverse currency effects. Cash flow from operating activities was BSEK 8.4.

Looking at Q4, the soft market conditions remained with flat organic sales, year-over-year (y-o-y). The weaker growth compared to what we reported in Q3 y-o-y is mainly due to favorable timing of deliveries before year-end 2024 in our Industrial business in Americas and India. In addition, price/mix was solid. Organic sales in our Industrial business increased, where Aerospace and Magnetic bearings in Europe and tariff-related price increases in Americas contributed. In Asia, a solid organic growth in China was partly driven by a strong finish in Industrial distribution towards year-end, while the volume driven growth in India continued.

Organic sales in our Automotive business continued to decrease with sequentially even more challenging market conditions, particularly in Europe and Americas. Negative growth in China was due to a strong Q4 last year, while electric vehicles continued to perform well. In a tough market environment, it's encouraging that we continue to win several strategically important margin accretive contracts across our targeted segments which bode well for the future.

The improved Group margin y-o-y was mainly driven by a strong positive cost development where solid execution of our rightsizing activities contributed with approximately MSEK 190. The negative synergies related to the Automotive separation are expected to kick in from the beginning of 2026. In Q1, these negative synergies are assessed to be somewhat larger than the savings from the rightsizing activities, compared to a positive net contribution in Q4. In addition, the now finalized World Class manufacturing program impacted earnings positively. Lower material costs continued to contribute, partly from a different product mix within Automotive compared to last year. Tariff costs were once again largely compensated for. At current levels, our ambition is to do so also in Q1 although the geopolitical turmoil inevitably amplifies overall uncertainty. The margin was furthermore significantly affected by currency headwinds.

Items affecting comparability (IAC) were, as previously communicated, sequentially higher and amounted to BSEK 1 with roughly half related to the Automotive separation and the other half to our footprint optimization activities with the closure of Argentina manufacturing operations as the main one.

Cash flow from operations at BSEK 2.7 was solid, considering higher IAC, driven by a positive Net working capital development.

Creating two fit for purpose businesses

At our Capital Markets Day in November, we presented the strategic direction and new Industrial financial targets following the planned Automotive separation. As a focused, pure-play industrial company, we are well positioned to unlock additional long-term value through a more competitive offering and an enhanced ability to outgrow the market. The continued transformation of our manufacturing and supply chain footprint, resulting in increased investments as well as charges (IAC),

are necessary for delivering on our long-term adjusted operating margin target of above 19% over a business cycle.

The strategy for the Automotive business focuses on accelerating growth in high-potential markets, supported by a lean, automotive-adapted value chain. Its long-term objective is to grow ahead of the automotive market while improving operating margin, where the business wins mentioned before build a solid platform for our future Automotive business.

The Automotive separation continues at high pace according to plan. We have identified an opportunity to faster reduce the contract manufacturing to Automotive, although from the same level at point of separation as previously communicated. This will strengthen the competitiveness of both businesses and decrease future investment needs for Automotive. As this will require an additional transfer of production lines to Automotive, we therefore plan to list the Automotive business at Nasdaq Stockholm during Q4 2026. This additional transfer will be managed within the already announced cost and capital expenditure for the Automotive separation. Listing is subject to the Board of Directors proposing a listing and shareholders' approval.

Outlook

We expect market demand in Q1 to remain at similar levels as in Q4. Consequently, we expect organic sales to strengthen somewhat in Q1, year-over-year supported by more favourable comparables.

In recognition of the Group's solid financial position, the Board has decided to propose to the Annual General Meeting a dividend of SEK 7.75 per share to be paid in two instalments.

Rickard Gustafson President and CEO

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SKF Group

Net sales

Net sales amounted to MSEK 21,969 (24,725) and decreased by –11.1% compared to last year, whereof currency effects accounted for –10.6%. Organic sales were flat at 0.0% (–3.1%), where Industrial grew by 2.3%, driven by continued positive price/mix mainly from tariff-induced pricing while Automotive declined by –5.8% due to tough market conditions.

By geographic region, China and Northeast Asia grew slightly by +1% while the other regions were almost flat. Net impact from acquired and divested businesses was –0.5% on growth, where the acquisition of the John Sample Group last year was offset by the divestment of the Aerospace business in Hanover in the US during the second quarter this year.

Organic sales by region

In local currencies, change y-o-y, %	Q4 2025
Europe, Middle East and Africa	−0.1
The Americas	−0.5
China and Northeast Asia	1.0
India and Southeast Asia	−0.5

Sales and Adjusted operating profit bridge1)

MSEK	Q4 2024	Organic sales and manufacturing volumes	Cost development	Currency impact	Structure 2)	Q4 2025
Net sales	24,725	−4		−2,617	−135	21,969
Growth, %		0.0		−10.6	−0.5	−11.1
Adjusted operating profit	2,735	113	383	−661	18	2,588
Adjusted operating margin, %	11.1					11.8
Accretion/dilution, pp		0.5	1.7	−1.4	0.2

¹⁾ Numbers are rounded.

Operating profit

Operating profit was MSEK 1,563 (2,331). Operating profit included items affecting comparability of MSEK –1,025 (–404), whereof MSEK –455 related to the optimization of the Industrial footprint, MSEK –508 (–96) related to the separation of the Automotive business and MSEK –62 (–308) related to other items affecting comparability.

The adjusted operating profit was MSEK 2,588 (2,735). The adjusted operating profit was positively impacted by price/mix as well as strong positive cost development, mainly driven by savings from rightsizing of approximately MSEK 190 as well as from footprint activities but lower material costs also contributed. Tariffs were largely compensated for by price increases and other mitigating activities. Adjusted operating profit was negatively impacted by lower volumes as well as continued significant currency headwind.

Net sales and Organic growth

Adjusted operating profit and Adjusted operating margin

²⁾ Including acquisitions and divestments of businesses.

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Financial net and tax

Financial income and expenses, net was MSEK –279 (–317). Exchange rate fluctuations had a more negative impact in the fourth quarter of 2025, compared to the fourth quarter 2024 while interest expenses were higher in 2024. Taxes were MSEK –693 (–423) resulting in an effective tax rate of 54.0% (21.0%). The tax rate was negatively impacted by the Automotive separation and adjustments due to differences between local and functional currency. Excluding these items, the effective tax rate was 30.2% in the fourth quarter.

Net profit for the period

Net profit amounted to MSEK 591 (1,591), corresponding to SEK 1.25 (3.31) in earnings per share. Adjusted earnings per share amounted to SEK 3.50 (4.20).

Cash flow

Net cash flow from operating activities amounted to MSEK 2,758 (3,283).

Operating profit was lower in 2025 compared to 2024 due to higher items affecting comparability. Cash flow impact from items affecting comparability during the fourth quarter is estimated to be approximately BSEK –1. Changes in working capital contributed positively where inventories and accounts receivable decreased in the quarter while accounts payable increased. Net capital expenditure amounted to MSEK 1,011 (1,364).

Financial position

Net working capital in percentage of annual sales was 30.4% in December 2025 compared to 30.6% in December 2024.

As of 31 December 2025, SKF had a net debt of MSEK 12,052, compared to MSEK 16,472 as of 1 January 2025. The decreased debt was mainly related to cash inflow from sale of business and cash flow from operations, which were partly offset by capital expenditure and the dividend paid in the second quarter as well as currency translation effects. Provisions for post-employment benefits, net decreased by MSEK –672 (–229) in the fourth quarter, mainly driven by actuarial gains as well as currency effects.

Key figures 31 Dec 2025 30 Sep 2025 31 Dec 2024 Net working capital, % of 12 months rolling sales 30.4 32.0 30.6 Adjusted ROCE, % 14.3 14.0 14.2 Net debt/equity, % 21.6 25.9 26.6 Net debt/equity, excluding post-employment benefits, % 10.2 13.3 14.1 Net debt/EBITDA 1.0 1.1 1.1 Net debt/Adjusted EBITDA 0.8 0.9 1.0

Operating cash flow

MSEK	Q4 2025	Q4 2024	2025	2024
EBITDA	2,526	3,439	12,380	14,771
Taxes paid	−685	−496	−2,490	−2,357
Non-cash items and other	−524	−817	−603	−818
Changes in net working capital	1,441	1,157	−895	−804
Net cash flow from operating activities	2,758	3,283	8,392	10,792
Investing activities	−991	−1,927	−1,500	−5,602
Operating cash flow after investments	1,767	1,356	6,892	5,190

Net working capital

Net debt and Net debt/Adjusted EBITDA

Net cash flow from operating activities1)

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Industrial business

Net sales

The Industrial business reported net sales of MSEK 15,938 (17,508). Organic growth was 2.3%, driven by price/mix. Currency effects impacted net sales negatively by -10.5% and the net impact from acquired and divested businesses was -0.8%.

All regions contributed with positive organic growth except for India and Southeast Asia where organic growth were relatively unchanged compared to last year. From a customer industry perspective, industrial distribution contributed positively and aerospace continued to deliver strong organic growth while railway and heavy industries declined.

Operating profit

The adjusted operating profit was MSEK 2,484 (2,549), with a corresponding operating margin of 15.6% (14.6%). Solid price/mix contribution more than offset lower volumes. Savings from rightsizing and footprint activities contributed positively, while wage inflation and tariff costs impacted negatively. Furthermore, currency effects impacted the operating profit significantly negatively.

Key financials

MSEK	Q42025	Q4 2024	2025	2024
Net sales	15 938	17,508	65,614	69,475
Adjusted operating profit	2,484	2,549	10,596	10,821
Adjusted operating margin, %	15.6	14.6	16.1	15.6
Operating profit	1,954	2,269	7,975	9,285
Operating margin, %	12.3	13.0	12.2	13.4

Sales and Adjusted operation profit bridge¹⁾

operation profit bridge		manufacturing
MSEK	Q4 2024	volumes	Cost development	Currency impact	Structure 2)	Q4 2025
Net sales	17,508	413		-1,848	-135	15 938
Growth, %		2.3		-10.5	-0.8	-9.0
Adjusted operating profit	2,549	194	186	-463	18	2,484
Adjusted operating margin, %	14.6					15.6
Accretion/dilution, pp		0.8	1.2	-1.0	0.2

0.....

²⁾ Including acquisitions and divestments of businesses.

Organic sales by customer industry 3)	Share of net sales by industry,%	Europe, Middle East and Africa	The Americas	China and Northeast Asia 4)	India and Southeast Asia
Share of net sales by region, %		42	29	20	9
Industrial distribution	42	+	-	+++	-
Aerospace	10	+++	+++		+/-
High-speed machinery and electrical drives	7	++	+++		+
Railway	7				+/-
Heavy industries	7	+/-			+++
Other industrial	5		+++
Agriculture, food and beverage	5	+++	+++		+++
Marine	4	-	+++	+++	+/-
Renewable energy	3		++
Off-highway	3	+++	-
Traditional energy	3		+/-
Material handling	2	+++	+/-		+/-
Automation	2		+++		+++
Total		+	+	+	+/-

³⁾ For the quarter, in local currencies, changes year-over-year.

¹⁾ Numbers are rounded.

⁴⁾ Reclassification of customer accounts between customer industries impact year-over-year comparison.

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Automotive business

Net sales

The Automotive business reported net sales of MSEK 6,031 (7,217). The organic sales decline of -5.8% was driven by a continued weak market demand environment. Currency effects impacted net sales negatively by -10.6%.

Market conditions were especially challenging in Europe and North America. Negative growth in China was mainly driven by a strong fourth quarter last year for light vehicles, while electric vehicles continued to perform well.

Operating profit

The adjusted operating profit for the fourth quarter was MSEK 104 (186), with a corresponding margin of 1.7% (2.6%). The decline year-over-year was mainly driven by significant currency effects and lower volumes. Cost reduction activities and lower material costs, partly from a different product mix compared to last year, more than compensated for wage inflation, volume-related cost inefficiencies and tariffs.

Key financials

MSEK	Q42025	Q4 2024	2025	2024
Net sales	6,031	7,217	25 969	29,247
Adjusted operating profit	104	186	1,077	1,362
Adjusted operating margin, %	1.7	2.6	4.1	4.7
Operating profit	-391	62	-220	1,054
Operating margin, %	-6.5	0.9	-0.8	3.6

Sales and Adjusted operation profit bridge¹⁾

MSEK	Q4 2024	Organic sales and manufacturing volumes	Cost development	Currency impact	Structure 2)	Q4 2025
Net sales	7,217	-417		-769		6,031
Growth, %		-5.8		-10.6	0.0	-16.4
Adjusted operating profit	186	-81	197	-198		104
Adjusted operating margin, %	2.6					1.7
Accretion/dilution, pp		-1.1	3.3	-2.7	0.0

¹⁾ Numbers are rounded.

²⁾ Including acquisitions and divestments of businesses.

Organic sales by customer industry 3)	Share of net sales by industry,%	Europe, Middle East and Africa	The Americas	China and Northeast Asia	India and Southeast Asia
Share of net sales by region, %		37	29	21	13
Light vehicles	52		-		+/-
Vehicle aftermarket	33	++	+/-
Commercial vehicles	15			+++	+++
Total				-	+/-

³⁾ For the quarter, in local currencies, changes year-over-year.

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Outlook and guidance

Outlook

• Q1 2026: We expect market demand to remain at similar levels as in Q4. Consequently, we expect organic sales to strengthen somewhat year-over-year, supported by more favourable comparables.

Guidance Q1 2026

• Currency impact on the operating profit: around MSEK –800, year-over-year, based on exchange rates as per 31 December 2025.

Guidance FY 2026

• Tax level excluding effects related to divested businesses and separation of the Automotive business: around 28%.
• Additions to property, plant and equipment: around BSEK 5.
• Items affecting comparability related to the Automotive separation and footprint optimization: BSEK –2.5 to –3. This is within the frame comunicated at CMD 2025.

Previous outlook and guidance statement

Outlook

• Q4 2025: While the global economic development makes the outlook uncertain, we expect market demand to remain at similar levels as in Q3. Consequently, we expect organic sales to be relatively unchanged, year-over-year.

Guidance Q4 2025

• Currency impact on the operating profit: around MSEK –650, year-over-year, based on exchange rates as per 30 September 2025

Guidance FY 2025

• Tax level excluding effects related to divested businesses: around 28%.
• Additions to property, plant and equipment: around BSEK 4 excluding separation of the Automotive business.

Other Group information

Full Year 2025

Operating profit was MSEK 7,755 (10,339). Operating profit included items affecting comparability of MSEK –3,918 (–1,844), whereof MSEK –2,946 (–1,364) related to ongoing restructuring and cost reduction activities, including the full cost of the rightsizing activity. In addition, MSEK –1,356 (–133) related to the separation of the Automotive business and MSEK –584 (–347) primarily related to impairment of fixed assets. It also included MSEK 224 related to profit from sale of the manufacturing site in Luton, UK, as well as MSEK 744 related to profit from sale of the aerospace business in Hanover, USA.

The adjusted operating profit was MSEK 11,673 (12,183). The adjusted operating profit was positively impacted by price/mix. Solid cost control resulted in positive cost development compared to last year, despite wage inflation, volume related cost inefficiencies and tariffs. The adjusted operating profit was negatively impacted by lower volumes as well as a significant currency headwind.

Financial income and expenses, net was MSEK –1,330 (–1,250). Exchange rate fluctuations had a more negative impact in 2025 compared to 2024 while interest expenses were higher in 2024.

Taxes amounted to MSEK –2,176 (–2,202), resulting in an effective tax rate of 33.9% (24.2%). The tax rate was negatively impacted by the Automotive separation and adjustments due to differences between local and functional currency. Excluding these items, the effective tax rate was 26.8% in 2025.

Net cash flow from operating activities was MSEK 8,392 (10,792). The lower cash flow is mainly driven by a lower operating profit in 2025 due to high items affecting comparability while changes in working capital were on same levels as in 2024. Cash outflow from items affecting comparability during 2025 is estimated to approximately BSEK –3.

Significant events during the quarter

27 October – SKF reorganized its operations in Argentina

As part of optimizing its operations worldwide, SKF discontinued production at its Tortuguitas plant in Argentina.

11 November – Capital Markets Day

SKF held a Capital Markets Day in Stockholm, Sweden. During the event, deeper insights were provided into the strategic direction of both the Industrial and the Automotive businesses as well as financial targets post the planned separation of Automotive from SKF Group.

18 December – Six additional factories decarbonized

Six additional factories across SKF's global manufacturing footprint achieved decarbonized status, a significant step towards the Group's target–decarbonized operations by 2030.

Other information

Board of Directors, Automotive business

Håkan Buskhe, Philip Ahlgren, Jumana Al-Sibai, Ebba Bonde, Therese Friberg, Hock Goh, Rickard Gustafson (in his capacity as Group CEO) and Maria Hemberg have been elected the Board of Directors of the SKF Automotive business. Håkan Buskhe has been elected Chair of the Board. SKF Automotive is still part of the SKF Group and a subsidiary of AB SKF. Establishing a new board in SKF Automotive is part of the preparations to be operationally ready to list the Automotive business on Nasdaq Stockholm. Changes to Board may occur before listing, which is subject to the Board of Directors proposing a listing and shareholders' approval.

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Decarbonized operations 2030

SKF has a longstanding track record on understanding and reducing its environmental and climate impact and started already in 2000 to set targets and report on carbon dioxide emissions. In 2020, the target of decarbonizing own operations by 2030 was launched and in 2021 SKF's target of net-zero greenhouse gas emissions for the full value chain by 2050 was set. Both targets have been approved by the Science Based Targets Initiative.

The four strategic levers to decarbonize manufacturing operations by 2030 are energy and operational efficiency improvements, as well as switching to renewable energy sources and electrification of fossil fuel applications. This covers both scope 1 direct emissions as well as scope 2 indirect emissions.

During the last quarter (Q3) reported, the total scope 1 and 2 emissions were further reduced, well ahead of the target trajectory. Scope 1 emissions are stable, while the increase of renewable electricity continues to contribute to further scope 2 reductions. Significant additions of renewable electricity include ISEA, Mexico, France and Bulgaria. In addition, energy efficiency has continued to improve. Due to the limited variation in production activity during Q3, the corresponding change in emissions associated with energy consumption was small.

Decarbonized operations (scope 1 and 2) 1)

1) Latest figures are presented for the end of the previous quarter, 12 months rolling.

Sustainability is an integral part of SKF's strategy and is a priority for long-term profitable growth. Around 20% of all energy produced globally is used to overcome friction. By creating more efficient and durable solutions for industries, significantly cutting emissions by 2030 and achieving net-zero greenhouse gas emissions in the supply chain by 2050, SKF is pioneering sustainability in its sphere. Further reporting of all material sustainability topics are found in the Annual Report, including for example accident rates, disclosures for own workforce and workers in the value chain.

More information on www.skf.com/group/organisation/ sustainability

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Financial statements – SKF Group

Condensed consolidated income statements

MSEK	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Net sales	21,969	24,725	91,583	98,722
Cost of goods sold	−16,315	−17,864	−67,058	−71,349
Gross profit	5,654	6,861	24,525	27,373
Research and development expenses	−830	−848	−3,409	−3,326
Selling and administrative expenses	−3,155	−3,494	−13,618	−13,364
Other operating income/expenses, net	−106	−188	257	−344
Operating profit	1,563	2,331	7,755	10,339
Financial income and expenses, net	−279	−317	−1,330	−1,250
Profit before taxes	1,284	2,014	6,425	9,089
Income taxes	−693	−423	−2,176	−2,202
Net profit	591	1,591	4,249	6,887
Net profit attributable to:
Shareholders of AB SKF	568	1,507	3,927	6,474
Non-controlling interests	23	84	322	413
Basic earnings per share (SEK) 1)	1.25	3.31	8.62	14.22

¹⁾ Shares from the Performance Share Programme are not considered dilutive, therefore, diluted earnings per share is equal to basic earnings per share.

Condensed consolidated statements of comprehensive income

MSEK	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Net profit	591	1,591	4,249	6,887
Items that will not be reclassified to the income statement:
Remeasurements (actuarial gains and losses)	427	428	623	731
Assets at fair value through other comprehensive income	2	80	−307	80
Income taxes	−162	−71	−241	−150
	267	437	75	661
Items that may be reclassified to the income statement:
Exchange differences arising on translation of foreign operations	−1,198	2,192	−7,243	2,914
	−1,198	2,192	−7,243	2,914
Other comprehensive income, net of tax	−931	2,629	−7,168	3,575
Total comprehensive income	−340	4,220	−2,919	10,462
Shareholders of AB SKF	−317	4,026	−2,819	9,938
Non-controlling interests	−23	194	−100	524

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Condensed consolidated balance sheets

MSEK	December 2025	December 2024
Goodwill	10,925	12,574
Other intangible assets	3,487	4,671
Property, plant and equipment	27,785	30,470
Right-of-use asset leases	2,900	3,564
Deferred tax assets	4,095	3,369
Other non-current assets	2,693	2,971
Non-current assets	51,885	57,619
Inventories	23,677	26,182
Trade receivables	15,408	16,600
Other current assets	5,780	6,057
Other current financial assets	9,466	11,361
Current assets	54,331	60,200
Assets classified as held for sale	206	1,594
Total assets	106,422	119,413
Equity attributable to shareholders of AB SKF	53,558	59,649
Equity attributable to non-controlling interests	2,110	2,320
Long-term financial liabilities	14,168	15,399
Provisions for post-employment benefits	7,004	8,502
Provisions for deferred taxes	1,955	1,905
Other long-term liabilities and provisions	1,870	1,504
Non-current liabilities	24,997	27,310
Trade payables	11,207	12,553
Short-term financial liabilities	1,172	5,361
Other short-term liabilities and provisions	13,362	12,087
Current liabilities	25,741	30,001
Liabilities classified as held for sale	16	133
Total equity and liabilities	106,422	119,413

Condensed consolidated statements of changes in shareholders' equity

MSEK	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Opening balance 1 October/1 January	56,001	57,708	61,969	54,956
Net profit	591	1,591	4,249	6,887
Hyperinflation adjustments	63	86	222	389
Components of other comprehensive income
Currency translation adjustments	−1,198	2,192	−7,243	2,914
Change in FV OCI assets and cash flow hedges	2	80	−307	80
Remeasurements	427	428	623	731
Income taxes	−162	−71	−241	−150
Other	−1	—	0	—
Transactions with shareholders
Non-controlling interest	−5	−15	0	0
Cost for Performance Share Programmes, net	−13	−7	9	−20
Dividends	−37	−37	−3,613	−3,833
Other	—	14	—	15
Closing balance 31 December	55,668	61,969	55,668	61,969

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Condensed consolidated statements of cash flow

MSEK	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Operating activities:
Operating profit	1,563	2,331	7,755	10,339
Non-cash items:
Depreciation, amortization and impairment	963	1,108	4,624	4,432
Net loss/gain (—) on sales of PPE and businesses	−14	−29	−1,029	−15
Other non-cash items	−190	0	1,780	961
Income taxes paid	−685	−496	−2,490	−2,357
Interest received	93	57	318	443
Interest paid	−147	−138	−567	−786
Other	−266	−707	−1,104	−1,421
Changes in working capital:	1,441	1,157	−895	−804
Inventories	114	−218	−549	−2,224
Accounts receivable	668	1,358	−805	872
Accounts payable	732	398	−284	850
Other operating assets/liabilities	−73	−381	743	−302
Net cash flow from operating activities	2,758	3,283	8,392	10,792
Investing activities:
Payments for intangible assets, PPE, businesses and equity securities	−1,020	−1,931	−3,834	−5,682
Sales of PPE, businesses and equity securities	29	4	356	80
Sales of business net of cash	—	—	2,188	—
Tax payments related to sales of business	—	—	−210	—
Net cash flow used in investing activities	−991	−1,927	−1,500	−5,602
Net cash flow after investments before financing	1,767	1,356	6,892	5,190

MSEK	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Financing activities:
Proceeds from short- and long-term loans	34	95	246	464
Repayments of short- and long-term loans	−53	−2	−3,729	−3,153
Repayment leases	−239	−232	−901	−885
Cash dividends	−37	−36	−3,613	−3,832
Other financing items	—	—	−174	−210
Investments in financial assets	−103	−48	−234	−30
Sales of financial assets	89	13	116	73
Net cash flow used in financing activities	−309	−210	−8,289	−7,573
Net cash flow	1,458	1,146	−1,397	−2,383
Change in cash and cash equivalents:
Cash and cash equivalents at 1 October/1 January	7,629	9,776	11,031	13,311
Cash effect excl. acquired/sold businesses	1,458	1,043	−3,585	−2,493
Cash effect of acquired/sold businesses	—	103	2,188	110
Exchange rate effect	−103	109	−650	103
Cash and cash equivalents at 31 December	8,984	11,031	8,984	11,031

Change in Net debt	Closing balance 31 December 2025	Other non-cash changes	Acquired/ sold businesses	Cash changes	Exchange rate effect	Opening balance 1 January 2025
Loans, long- and short-term	12,089	31	0	−3,483	−985	16,526
Post-employment benefits, net	6,372	44	0	−924	−477	7,729
Lease liabilities	2,895	664	0	−901	−384	3,516
Financial assets, other	−320	−4	0	−92	44	−268
Cash and cash equivalents	−8,984	0	−2,188	3,585	650	−11,031
Net debt	12,052	735	−2,188	−1,815	−1,152	16,472

{11}------------------------------------------------

Condensed consolidated financial information

MSEK unless otherwise stated	Q1/24	Q2/24	Q3/24	Q4/24	Q1/25	Q2/25	Q3/25	Q4/25
Net sales	24,699	25,606	23,692	24,725	23,966	23,166	22,482	21,969
Cost of goods sold	−17,604	−18,736	−17,145	−17,864	−16,830	−17,524	−16,389	−16,315
Gross profit	7,095	6,870	6,547	6,861	7,136	5,642	6,093	5,654
Gross margin, %	28.7	26.8	27.6	27.8	29.8	24.4	27.1	25.7
Research and development expenses	−826	−870	−782	−848	−849	−910	−820	−830
Selling and administrative expenses	−3,234	−3,411	−3,225	−3,494	−3,448	−3,926	−3,089	−3,155
as % of sales	13.1	13.3	13.6	14.1	14.4	16.9	13.7	14.4
Other operating income/expenses, net	−42	−100	−14	−188	46	494	−177	−106
Operating profit	2,993	2,489	2,526	2,331	2,885	1,300	2,007	1,563
Operating margin, %	12.1	9.7	10.7	9.4	12.0	5.6	8.9	7.1
Adjusted operating profit	3,303	3,324	2,821	2,735	3,233	3,090	2,762	2,588
Adjusted operating margin, %	13.4	13.0	11.9	11.1	13.5	13.3	12.3	11.8
Financial net	−271	−377	−285	−317	−290	−441	−320	−279
Profit before taxes	2,722	2,112	2,241	2,014	2,595	859	1,687	1,284
Profit margin before taxes, %	11.0	8.2	9.5	8.1	10.8	3.7	7.5	5.8
Income taxes	−720	−449	−610	−423	−647	−276	−560	−693
Net profit	2,002	1,663	1,631	1,591	1,948	583	1,127	591
Net profit attributable to:
Shareholders of AB SKF	1,888	1,529	1,550	1,507	1,796	516	1,047	568
Non-controlling interests	114	134	81	84	152	67	80	23

{12}------------------------------------------------

Reconciliation of profit before taxes for the Group

MSEK	Q1/24	Q2/24	Q3/24	Q4/24	Q1/25	Q2/25	Q3/25	Q4/25
Operating profit:
Industrial	2,644	2,131	2,241	2,269	2,677	1,284	2,060	1,954
Automotive	349	358	285	62	208	16	−53	−391
Financial net	−271	−377	−285	−317	−290	−441	−320	−279
Profit before tax for the Group	2,722	2,112	2,241	2,014	2,595	859	1,687	1,284

Share data

	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Total number of shares:	455,351,068	455,351,068	455,351,068	455,351,068
whereof A shares	28,930,824	28,983,999	28,930,824	28,983,999
whereof B shares	426,420,244	426,367,069	426,420,244	426,367,069
Basic earnings per share (SEK) 1)	1.25	3.31	8.62	14.22
Diluted earnings per share (SEK) 2)	1.25	3.31	8.62	14.22
Weighted average number of shares, basic	455,351,068	455,351,068	455,351,068	455,351,068
Weighted average number of shares, diluted	455,351,068	455,351,068	455,351,068	455,351,068

¹⁾ Basic earnings per share is calculated as net profit (excl. non-controlling interests) divided by the weighted average number of shares.

²⁾ Shares from the Performance Share Programme are not considered dilutive, therefore, diluted earnings per share is equal to basic earnings per share.

{13}------------------------------------------------

Key figures

	Q1/24	Q2/24	Q3/24	Q4/24	Q1/25	Q2/25	Q3/25	Q4/25
Net sales, MSEK	24,699	25,606	23,692	24,725	23,966	23,166	22,482	21,969
Organic growth, %	−7.0	−6.6	−4.4	−3.1	−3.5	−0.2	2.0	0.0
Adjusted EBITDA, MSEK	4,280	4,326	3,831	3,833	4,298	4,088	3,763	3,600
EBITDA, MSEK	4,065	3,705	3,562	3,439	4,143	2,472	3,238	2,527
EBITA, MSEK	3,152	2,643	2,681	2,495	3,049	1,446	2,153	1,699
Adjusted operating profit, MSEK	3,303	3,324	2,821	2,735	3,233	3,090	2,762	2,588
Adjusted operating margin, %	13.4	13.0	11.9	11.1	13.5	13.3	12.3	11.8
Operating profit	2,993	2,489	2,526	2,331	2,885	1,300	2,007	1,563
Operating margin, %	12.1	9.7	10.7	9.4	12.0	5.6	8.9	7.1
Adjusted earnings per share, SEK	4.83	5.19	4.05	4.20	4.71	5.06	3.96	3.50
Basic earnings per share, SEK	4.15	3.36	3.40	3.31	3.95	1.13	2.30	1.25
Dividend per share, SEK	—	7.50	—	—	—	7.75	—	—
Share price at the end of the period, SEK	218.5	212.8	202.0	207.6	202.2	217.1	233.2	245.8
Net working capital, % of 12 months rolling sales	30.9	31.9	31.5	30.6	30.4	31.6	32.0	30.4
Adjusted ROCE, %	15.1	14.7	14.6	14.2	14.0	13.9	14.0	14.3
ROCE, %	12.7	11.9	11.9	12.1	11.9	10.7	10.2	9.6
ROE, %	11.5	10.6	10.4	11.7	11.5	9.7	9.0	7.4
Gearing, %	33.5	32.2	32.1	30.9	30.5	32.5	28.6	27.7
Equity/assets ratio, %	50.4	50.9	50.9	51.9	52.3	49.7	52.4	52.3
Additions to property, plant and equipment, MSEK	989	1,305	1,420	1,364	916	930	964	1,011
Net debt/equity, %	26.6	32.8	30.0	26.6	25.2	28.0	25.9	21.6
Net debt/equity, excluding post-employment benefits, %	13.0	18.6	16.2	14.1	13.1	14.4	13.3	10.2
Net debt, MSEK	15,983	18,937	17,291	16,472	14,933	15,491	14,515	12,052
Net debt/EBITDA	1.1	1.3	1.2	1.1	1.0	1.1	1.1	1.0
Net debt/Adjusted EBITDA	0.9	1.1	1.0	1.0	0.9	1.0	0.9	0.8
Registered number of employees	40,051	39,589	39,198	38,743	38,426	38,008	37,842	37,271

Definitions, see page 18.

SKF applies the guidelines issued by ESMA (European Securities and Markets Authority) on APMs (Alternative Performance Measures). These key figures are not defined or specified in IFRS but provide complementary information to investors and other stakeholders on the company's performance. The definition of each APM is presented at the end of the interim report. For the reconciliation of each APM against the most reconcilable line item in the financial statements, see www.skf.com/group/investors.

{14}------------------------------------------------

Segment information – quarterly figures

Industrial

MSEK unless otherwise stated	Q1/24	Q2/24	Q3/24	Q4/24	Q1/25	Q2/25	Q3/25	Q4/25
Net sales	17,487	17,943	16,537	17,508	17,033	16,654	15,989	15,938
Organic growth, %	−7.3	−7.4	−4.6	−2.7	−3.6	2.4	3.8	2.3
Adjusted operating profit	2,867	2,919	2,486	2,549	2,871	2,759	2,482	2,484
Adjusted operating margin, %	16.4	16.3	15.0	14.6	16.9	16.6	15.5	15.6
Operating profit	2,644	2,131	2,241	2,269	2,677	1,284	2,060	1,954
Operating margin, %	15.1	11.9	13.6	13.0	15.7	7.7	12.9	12.3
Adjusted EBITDA	3,719	3,790	3,379	3,512	3,800	3,618	3,341	3,346
EBITDA	3,592	3,180	3,160	3,242	3,799	2,312	3,147	2,715
Assets and liabilities, net	55,342	55,230	53,298	54,652	51,950	49,054	49,070	47,718
Registered number of employees	33,722	33,235	32,876	32,465	31,883	31,372	31,189	30,639

Automotive

MSEK unless otherwise stated	Q1/24	Q2/24	Q3/24	Q4/24	Q1/25	Q2/25	Q3/25	Q4/25
Net sales	7,212	7,663	7,155	7,217	6,933	6,512	6,493	6,031
Organic growth, %	−6.2	−4.7	−4.0	−4.0	−3.0	−6.2	−2.3	−5.8
Adjusted operating profit	436	405	335	186	362	331	280	104
Adjusted operating margin, %	6.0	5.3	4.7	2.6	5.2	5.1	4.3	1.7
Operating profit	349	358	285	62	208	16	−53	−391
Operating margin, %	4.8	4.7	4.0	0.9	3.0	0.2	−0.8	−6.5
Adjusted EBITDA	560	535	452	321	498	471	422	254
EBITDA	473	525	402	197	344	158	91	−188
Assets and liabilities, net	15,582	15,941	15,549	16,159	15,354	14,860	14,759	13,489
Registered number of employees	3,968	3,983	3,918	3,879	3,913	3,963	3,993	3,962

¹⁾ Previously published figures for 2024 have been restated to reflect change in responsibilities for factories and Group functions in accordance with new organizational structure.

{15}------------------------------------------------

Notes

NOTE 1 Accounting principles

The consolidated financial statements of the SKF Group were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. The interim report was prepared in accordance with IAS 34 Interim Financial Reporting.

Disclosures as required by IAS 34 p. 16 A are provided in the notes to the financial statements as well as in other parts of the interim report. The financial statements of the Parent Company were prepared in accordance with the "Annual Accounts Act" and the RFR 2 "Accounting for legal entities". SKF Group and the Parent Company applied the same accounting principles and methods of computation in the interim financial statements as compared with the latest annual report. IASB issued several amended accounting standards that were endorsed by EU, effective date 1 January 2025. None of these have a material effect on the SKF Group's financial statements.

Pillar II income taxes legislation was effective from 1 January 2024. Under the legislation, the Parent Company will be required to pay top-up tax on profit of its subsidiaries that are taxed at an effective tax rate of less than 15%. No top-up tax has been included in the financial statements for the full year 2025. SKF Group has analyzed the financial figures and concluded that the Group is not expecting any additional material top-up tax during 2025. The Group will continue to assess the impact of Pillar II income taxes legislation on its future financial performance.

Valuation principles and classifications of the financial instruments, as described in SKF Annual Report 2024, have been consistently applied throughout the reporting period. There are no major changes in fair value during the period.

NOTE 2 Transactions with related parties

No significant change is present for transactions with related parties in relation to disclosure provided in Annual Report 2024.

NOTE 3 Risks and uncertainties in the business

The SKF Group operates in many different industrial and geographical areas. As a result, the SKF Group is exposed to various types of risks. SKF appreciates that there are risks associated with the macro environment such as the geopolitical landscape, the state of global markets and significant industry and technological shifts. There are also business risks including supply chain disruptions, information and cybersecurity threats, and challenges in attracting talent in a competitive labour market. Additionally, there are legal and compliance risks arising from the increased regulatory demands and internal governance and coordination within the Group as well as ongoing regulatory investigations and processes.

The SKF Group's operations are also exposed to various types of financial risks; market risks (being currency risk, interest rate risk and other price risks), liquidity risks and credit risks. Further information on the risks and how SKF works to mitigate them is found in SKF's latest Annual Report, available on www.skf.com/group/investors.

The financial position of the Parent Company is dependent on the financial position and development of the subsidiaries. A general decline in the demand for the products and services provided by the Group could mean lower residual profits and lower dividend income for the Parent Company, as well as a need for writing down values of the shares in the subsidiaries.

NOTE 4 Assets held for sale

As per 31 December 2025 the net assets for the aerospace operation in Elgin, USA have been reported as assets held for sale in accordance with IFRS 5. Net assets per end of December amounted to approximately MSEK 190.

Gothenburg, 30 January 2026

Aktiebolaget SKF (publ)

Rickard Gustafson President and CEO

This report has not been reviewed by AB SKF's auditors.

{16}------------------------------------------------

Financial statements – Parent Company

Parent Company condensed income statements

MSEK	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Revenue	1,059	1,989	4,389	7,362
Cost of revenue	−1,406	−1,507	−5,703	−5,528
General management and administrative expenses	−454	−360	−1,880	−1,639
Other operating income/expenses, net	53	−4	72	17
Operating profit	−748	118	−3,122	212
Financial income and expenses, net	2,281	1,725	6,701	2,499
Profit before taxes	1,533	1,843	3,579	2,711
Appropriations	3,359	400	3,359	400
Income taxes	−527	−112	−7	−86
Net profit	4,365	2,131	6,931	3,025

Parent Company condensed statements of comprehensive income

MSEK	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Net profit	4,365	2,131	6,931	3,025
Items that will not be reclassified to the income statement:
Assets at fair value through other comprehensive income	—	78	−309	78
Other comprehensive income, net of tax	4,365	2,209	6,622	3,103
Total comprehensive income	4,365	2,209	6,622	3,103

Parent Company condensed balance sheets

MSEK	December 2025	December 2024
Intangible assets	531	712
Investments in subsidiaries	26,014	20,797
Receivables from subsidiaries	11,668	12,483
Other non-current assets	753	937
Non-current assets	38,966	34,929
Receivables from subsidiaries	5,015	8,207
Other receivables	511	557
Current assets	5,526	8,764
Total assets	44,492	43,693
Shareholders' equity	28,023	24,895
Provisions	817	731
Non-current liabilities	11,666	12,480
Current liabilities	3,986	5,587
Total shareholders' equity, provisions and liabilities	44,492	43,693

{17}------------------------------------------------

Alternative performance measures and definitions

Adjusted operating profit

Operating profit excluding items affecting comparability.

Adjusted operating margin

Operating profit margin excluding items affecting comparability.

Adjusted earnings/loss per share in SEK

Basic earnings per share excluding items affecting comparability.

Adjusted return on capital employed (Adjusted ROCE)

Return on capital employed (ROCE) excluding items affecting comparability.

Basic earnings/loss per share in SEK (as defined by IFRS)

Profit/loss after taxes less non-controlling interests divided by the ordinary number of shares.

Capital employed

Twelve months rolling average of total assets less the average of non-interest bearing liabilities.

Currency impact on operating profit

The effects of both translation and transaction flows based on current assumptions and exchange rates compared to the corresponding period last year.

Debt

Loans and net provisions for postemployment benefits.

EBITA (Earnings before interest, taxes and amortization)

Operating profit before amortizations.

EBITDA (Earnings before interest, taxes, depreciation and amortization)

Operating profit before depreciations, amortizations, and impairments.

Equity/assets ratio

Equity as a percentage of total assets.

Gearing

Debt as a percentage of the sum of debt and equity.

Gross margin

Gross income as a percentage of net sales.

Items affecting comparability

Significant income/expenses that affect comparability between accounting periods. This includes, but is not limited to, restructuring costs, impairments and write-offs, currency effects caused by devaluations and gains and losses on divestments of businesses.

Net debt

Debt less short-term financial assets excluding derivatives.

Net debt/EBITDA

Net debt, in relation to 12 months rolling EBITDA.

Net debt/Adjusted EBITDA

Net debt, in relation to 12 months rolling EBITDA excluding Items affecting comparability.

Net debt/equity

Net debt, as a percentage of equity.

Net working capital (NWC)

Trade receivables plus inventories minus trade payables

Net working capital as % of annual sales (NWC)

Trade receivables plus inventory minus trade payables as a percentage of twelve months' rolling net sales.

Operating margin

Operating profit/loss, as a percentage of net sales.

Organic growth

Sales excluding effects of currency and acquired and divested businesses.

Revenue growth

Sales excluding effects of currency and divested businesses.

Registered number of employees

Total number of employees included in SKF's payroll at the end of the period.

Return on capital employed (ROCE)

Operating profit/loss plus interest income, as a percentage of 12 months' rolling average of total assets less the average of non-interest bearing liabilities.

Return on equity (ROE)

Profit/loss after taxes as a percentage of 12 months' rolling average of equity.

Scope 1, 2 and 3

Scope 1 is emissions that SKF controls directly, e.g. equipment using fossil fuel. Scope 2 is emissions that SKF causes indirectly, e.g. from electricity purchase. Scope 3 is emissions that SKF is indirectly responsible for up the value chain, e.g. steel purchase or logistics.

SKF organic sales outlook

The organic sales outlook for SKF's products and services represents management's best estimate based on current information about the future demand from our customers.

For reconciliations of other Key ratios, see www.skf.com/group/investors

{18}------------------------------------------------

Q4 webcast

30 January at 09:00 CET To follow the presentation via webcast: Viewing SKF Q4 2025 Results

Dial-in to participate via telephone: Sweden +46 (0)8 5051 0031 UK/International +44 (0)207 107 0613

More information on www.skf.com/group/investors

Contact

Investor Relations

Sophie Arnius, Head of Investor Relations mobile +46 705 908 072 sophie.arnius@skf.com

Press

Carl Bjernstam, Head of Media Relations tel +46 31 337 2517 mobile +46 722 201 893 carl.bjernstam@skf.com

Calendar

6 March 2026 Annual Report 2025

21 April 2026 Q1 report

21 April 2026 Annual General Meeting 2026

17 July 2026 Q2 report 21 October 2026 Q3 report The financial information in this report contains inside information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above, on 30 January 2026 at 07:30 CET.

Cautionary statement

This report contains forward-looking statements that reflect SKF's current expectations on future events and financial and operational development. Forward-looking statements are inherently associated with risks and uncertainties, both known and unknown, and depend on future events and circumstances. Although management believes that the expectations reflected in the forward-looking statements are reasonable, no assurance can be given that such expectations will be fulfilled. Any statements about future strategy and business decisions are indicative only and remain subject to all necessary approvals. Results and actual outcomes could differ materially as a result of several factors, including but not limited to changes in economic, market and competitive conditions, regulatory changes and other government action, and fluctuations in exchange rates. SKF makes no undertaking to disclose, update or revise any forward-looking statement due to new information, future events or other such matters, other than what is required according to applicable legislation.

® SKF is a registered trademark of AB SKF (publ). © SKF Group 2026. All rights reserved. Please note that this publication may not be copied or distributed, in whole or in part, unless prior written permission is granted. Every care has been taken to ensure the accuracy of the information contained in this publication, but no liability can be accepted for any loss or damage whether direct, indirect or consequential arising out of the use of the information contained herein. January 2026.

This is SKF

Today, around 20% of all energy is spent overcoming friction. At SKF, we fight friction to reduce energy waste and make the most of the resources around us.

As a leading technology and engineering company, we deliver value at every step of our customers' journey. From the design phase, integrating our solutions into customers' products, to ongoing support throughout their lifecycle, we provide peace of mind.

Built on a century of expertise and a profound understanding of our customer applications, we've established a global presence and a brand trusted across industries. This allows us to offer tailored solutions– whether optimizing for speed, durability or efficiency–paving the way for a sustainable, resource-efficient future.

Quick facts

Founded 1907 Represented in around 130 countries Figures for FY 2025:

• Net sales MSEK 91,583
• 37,271 employees

• 17,000 distributors

AB SKF (publ)

Postal address: SE-415 50 Gothenburg, Sweden Visiting address: Sven Wingquists Gata 2 tel +46 31 337 10 00 www.skf.com Company registration number 556007-3495