SKF AB
SKF AB makes bearings and seals for industrial machinery, vehicles, and aerospace worldwide.
On the record
Checkpoint: SKF Vertevo automotive spinoff listing on Nasdaq Stockholm
The call
SKF's core Industrial business holds its position through certifications and distribution reach, while the automotive spinoff carries the slower-growing, more exposed part of the business.
SKF is the world's largest maker of bearings, the spinning parts that let machines work smoothly, and has held that top spot for over 100 years. The company is hard to replace because it has thousands of authorized sellers worldwide, special certifications needed for airplanes and other regulated industries, and deep knowledge about how to make these precision parts reliably. However, SKF is about to split into two companies by the end of 2026, and the critical thing to watch is whether you are buying stock in the stronger parent company or the automotive-focused spinoff that is being separated precisely because it is struggling.
Why
01
AI pressure: AI-driven predictive maintenance platforms from rivals like Schaeffler and Siemens. AI mostly upgrades SKF's own Enlight sensors now, but rival condition-monitoring platforms could pull service revenue away over time. Could AI do the core job? Unlikely.
02
Bigger players: Schaeffler and Chinese bearing makers moving into higher certification tiers. Chinese entrants are pushing up from commodity bearings while Schaeffler builds out its own condition-monitoring platform. Could a giant copy it? No, they are blocked.
03
What protects it. Century of metallurgy know-how, aerospace and wind certifications, and 17,000 distributor locations across 130 countries.
What would change this call
SKF Vertevo automotive spinoff completes Nasdaq Stockholm listing by Q4 2026 as planned. Confirms whether the equity offer sits in the stronger Industrial parent or the declining automotive unit.
Any Chinese bearing maker (e.g. C&U Group, Wafangdian) announces qualification into aerospace or wind-turbine certification tiers. Would show low-cost rivals breaching SKF's regulated, high-margin certification moat, not just commodity tiers.
Schaeffler or Siemens publicly announces a shipped condition-monitoring platform adopted by a major industrial customer in place of SKF Enlight. Would indicate SKF's installed-base services layer, not just hardware, is being displaced.
Any Chinese bearing maker (e.g. C&U Group, Wafangdian) announces qualification into aerospace or wind-turbine certification tiers. Would show low-cost rivals breaching SKF's regulated, high-margin certification moat, not just commodity tiers.
Schaeffler or Siemens publicly announces a shipped condition-monitoring platform adopted by a major industrial customer in place of SKF Enlight. Would indicate SKF's installed-base services layer, not just hardware, is being displaced.
Key numbers
- FY2025 net sales SEK 91,583 million
- Q2 2026 organic growth +1.4% vs -0.2% prior year
- ~17,000 distributor locations across 130 countries
Named risks
- SKF Vertevo automotive spinoff fails to complete cleanly or list on schedule by Q4 2026.
- Automotive segment organic decline (-1.4% Q2 2026) pressures Vertevo valuation ahead of standalone listing.
- Chinese low-end commodity bearing erosion accelerates beyond margin management.
- Leaderdrive humanoid robotics JV remains unproven, operational only end of 2026.
- Restructuring program (~1,200 positions) incurs further charges through 2026-2027 before savings materialize.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Schaeffler Group | contesting | Most cited direct rival in bearings and condition monitoring, 4.4% vs SKF 7.6% global share (2020 data) |
| Timken Company | contesting | Specialist strength in tapered roller and heavy-duty bearings, named top rival in 2025 bearing market outlook |
| NSK / NTN (Japan) | contesting | Competitive on precision and cost in electric motors and machine tools, per 2025-2026 industry reports |
| Chinese commodity bearing makers (C&U, Wafangdian) | gaining on | Named among top global manufacturers, eroding low-end/commodity bearing segment per 2026 market reports |
Questions people ask
- Is SKF AB profitable in 2026?
- Yes. SKF posted Q2 2026 net income of SEK 1,263 million, more than double the SEK 516 million a year earlier, on net sales of SEK 23,195 million, as reported 17 July 2026. FY2025 adjusted operating margin was 12.7%.
- Is SKF laying off workers?
- SKF is trimming staff via a rightsizing program announced at its 2025 Capital Markets Day targeting a net reduction of about 1,200 positions, with full annual savings expected by end of 2027. Reported headcount fell from 38,743 (FY2024) to 37,271 (FY2025).
- Could AI replace SKF's business?
- No, AI cannot replicate SKF's physical bearing manufacturing or its ~17,000-location distributor network. AI is instead augmenting service work: a Capgemini/Microsoft agentic assistant cut SKF technician manual-lookup time from over 12 minutes to about 90 seconds, per Capgemini's 2025 annual report.
- Who is SKF's biggest competitor?
- Schaeffler Group (Germany) is SKF's most cited direct rival in bearings and digital condition monitoring, alongside Timken (US) and NSK/NTN (Japan). A 2020 market-share estimate placed SKF first globally at about 7.6% versus Schaeffler's 4.4%.
- Who owns SKF AB?
- SKF is publicly traded on Nasdaq Stockholm (ticker SKF B). Its largest shareholder is FAM AB, a Wallenberg family investment vehicle, holding about 15.2% of shares and roughly 29% of voting rights as of 18 May 2026. Activist investor Cevian Capital holds about 8%.
- What is SKF Vertevo?
- SKF Vertevo is the standalone name given to SKF's Automotive business, confirmed 26 February 2026 with Kerstin Enochsson as CEO. It is being separated from SKF's Industrial parent and is targeting a Nasdaq Stockholm listing in Q4 2026.
Timeline
- 2026-07-17Q2 2026 results: net income SEK 1,263m, organic growth +1.4%, Automotive down 1.4%
- 2026-07-02SKF and Leaderdrive form 60%-owned JV for humanoid robot precision components
- 2026-02-26Automotive spinoff named SKF Vertevo, Kerstin Enochsson confirmed as CEO
- 2026-01-30FY2025 results: net sales SEK 91,583m, full-year adjusted margin 12.7%
- 2025-11-01Capital Markets Day: ~1,200 net position reduction program announced
- 2024-12-31FY2024 net sales SEK 98,722m, headcount 38,743
- 2024-09-17FAM backs SKF proposal to split the group, Automotive separation initiated
- 1907-01-01SKF founded in Gothenburg, Sweden
Revision history
24 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- AB SKF change of votes filing
- Flat growth offset by margin gains (2026-01-30)
- Continued margin improvement (2026-07-17)
- SKF AB Q2 2026 Earnings Call Highlights (2026-07-20)
- SKF/Leaderdrive press release (2026-07-02)
- FAM AB (2026-05-18)
- AB SKF (publ) Insider Trading & Ownership Structure
- gurufocus.com (2026-07-23)
- FAM supports SKF's proposal to split the Group (2024-09-17)
- SKF announces the future name of the Automotive business (2026-02-26)
- SKF Capital Markets Day 2025 deck
- SKF and Leaderdrive form a venture for precision components in humanoids (2026-07-02)