Swedish bearings maker SKF on Tuesday detailed its strategy to separate its industrial and automotive businesses, a move that will involve restructuring and separation charges totaling 6.5 billion Swedish kronor.
The company said it expects approximately 5.0 billion kronor in charges related to optimizing its industrial business from the fourth quarter of 2025 through 2028.
An additional 1.5 billion kronor in charges are anticipated for the separation of the automotive unit, according to the company.
The plan, first announced in September 2024, aims to create two standalone businesses to better focus on their respective markets.
"We are creating two even sharper businesses with a clearer focus on distinct opportunities to enhance customer value, accelerate growth, as well as improve efficiency and competitiveness,” said President and CEO Rickard Gustafson.
SKF confirmed it expects to be operationally ready to list the automotive business by mid-2026, subject to board and shareholder approval.
Following the split, the remaining industrial business will target long-term organic growth of 4% and an adjusted operating margin of over 19%, the company said.
The new automotive company will aim for above-market organic growth and a high single-digit adjusted operating margin.
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