Gothenburg, Sweden – SKF, the renowned global leader in rotating equipment performance, has announced a significant change to its business structure to enhance transparency and prepare for the upcoming separation of its Automotive business. Effective from the first quarter of 2026, SKF will implement a new segment reporting structure that will feature three distinct segments: Bearing Solutions, Specialized Industrial Solutions (SIS), and Automotive.

New Reporting Structure and Its Implications

The restructured reporting framework aims to provide clearer insights into the company’s financial performance and operational focus. The introduction of these three segments reflects SKF’s strategic emphasis on enhancing transparency, particularly in light of the planned spin-off of its Automotive division.

• Bearing Solutions: This segment will encompass the traditional core business of SKF, which focuses on bearings and related products.
• Specialized Industrial Solutions (SIS): This will include various specialized offerings such as Aerospace, Lubrication, Sealing, and Magnetic Solutions, catering to a diverse range of industrial applications.
• Automotive: This segment will specifically address the needs and demands of the automotive sector.

Restated Financials for Enhanced Clarity

As part of this restructuring, SKF has also released restated financial figures for the years 2024 and 2025. These adjustments reflect the transfer of business assets and production capabilities to the Automotive segment. The restated figures are crucial for stakeholders as they provide a more accurate depiction of the company’s financial health leading up to the separation.

SKF is targeting a listing on Nasdaq Stockholm for its Automotive business in the fourth quarter of 2026, pending necessary approvals from both the board and its shareholders. This move is expected to bolster the company’s competitive edge and unlock additional value for shareholders.

Expanded Customer Segmentation

In conjunction with the new business segments, SKF will also adopt a refined customer segmentation strategy within its industrial segments. The company plans to categorize its industrial customers into seven distinct groups, including:

• Aftermarket & Service
• Heavy Industries
• General Industries
• Energy
• Food & Beverage
• Marine
• Aerospace

This classification aims to better align SKF’s offerings with the specific needs of each customer group, enhancing service delivery and operational efficiency.

Strategic Rationale Behind the Changes

SKF’s decision to restructure its business segments comes at a time when the automotive industry is undergoing rapid transformation, driven by technological advancements and a shift towards sustainability. By creating a dedicated Automotive segment, SKF positions itself to respond more agilely to the evolving demands of the market.

The company has been experiencing increasing pressure to innovate and adapt to trends such as electrification and autonomous vehicles. The new structure will enable SKF to focus on these key areas while also maintaining robust support for its industrial solutions.

Future Outlook

As SKF moves closer to executing this strategic plan, the focus will remain on enhancing operational efficiencies, driving innovation, and delivering value to customers. The planned separation of the Automotive business is seen as a pivotal step towards allowing both segments to capitalize on their respective market opportunities.

Additionally, the financial clarity provided by the restated figures will offer investors and stakeholders a clearer view of the company’s performance and future potential. The strategic segmentation is expected to foster a more tailored approach to customer needs, ultimately leading to enhanced customer satisfaction and loyalty.

Conclusion

SKF’s announcement to restructure its business segments and release restated financial figures marks a significant milestone in the company’s evolution. As it prepares for the planned spin-off of its Automotive division, SKF is taking proactive steps to ensure transparency and operational excellence. The new reporting structure and customer segmentation strategy will not only facilitate better alignment with market demands but also position SKF for sustainable growth in the years to come.