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SKF Announces New Business Segments and Restated Figures

On March 16, 2026, SKF, the renowned bearings and sealing solutions provider, revealed significant changes to its reporting structure. This new segment structure is set to take effect from the first quarter of 2026 and aims to better reflect the group’s strategic direction while enhancing transparency, especially in light of the upcoming separation of its automotive segment.

Overview of New Segment Structure

Under this new framework, SKF will operate through three primary business segments. These consist of two Industrial segments - Bearing Solutions and Specialized Industrial Solutions (SIS) - along with one Automotive segment. The SIS will encompass various strategic core businesses including Aerospace, Lubrication Lifetime Solutions, Sealing Solutions, and Magnetic Solutions.

In addition, corporate function costs and internal sales between Industrial and Automotive segments will be itemized under a new category termed “Other.” This represents a shift from previous reporting practices, where such costs were integrated into the business segments. From 2026 onward, the Automotive segment will independently report its own central costs.

Restated Financial Figures for 2024 and 2025

As part of this reporting overhaul, restated figures for the years 2024 and 2025 have been released. This initiative aims to provide stakeholders with a clear baseline for comparison, illustrating how the new structure would have functioned historically. Notably, SKF's sealing business for automotive applications, previously part of the Automotive segment, will be shifted to the SIS. It’s crucial to note that this is solely a financial reporting adjustment, as operational responsibilities have consistently remained within the Seals business. Consequently, sales for the Automotive segment are expected to decrease by BSEK 2.4 in 2025.

Moreover, these restated financials will encapsulate all business transfers related to the separation, including logistics and production capacities, to the best extent possible, reflecting the Automotive segment’s anticipated structure post-separation. SKF has set an ambitious goal to list its Automotive business on Nasdaq Stockholm in the fourth quarter of 2026, pending approval from its Board of Directors and shareholders.

Updated Customer Industry Segmentation

While the new business segment reporting does not alter the customer industry distribution for the Automotive segment, it introduces a refined breakdown for the combined Bearing Solutions and SIS segments. This includes seven key industry categories: Aftermarket Service; Industrial Mobility and Defence; High-Speed Machinery and Electrical; Heavy Industries; Sustainable Food Supply; Advanced Technology; and Other OEM.

From the first quarter of 2026, these adjustments will be reflected in SKF's external financial reporting. Stakeholders and interested parties can access further details and associated documents on the SKF investor relations page at SKF Investor.

Conclusion

The introduction of this new reporting structure underlines SKF's commitment to strategic clarity and operational transparency. As the company gears up for its automotive segment's independence, these changes will not only assist in aligning its financial reporting with business strategies but also enhance investor confidence by providing a clearer view of its operational segments and associated performance metrics. Investors and market analysts will keenly observe how these changes unfold as SKF transitions into this new chapter of its business strategy.