Sandvik Earnings: Order Growth Supported by Demand for Electric Mining Equipment

Narrow-moat Sandvik reported organic order growth of 2% despite growing concerns over the health of the economy. Order intake of EUR 34.4 billion during the first quarter included two significant orders for battery mining equipment, which continues to be a structural tailwind for Sandvik and will help reduce the group's cyclicality to an economic downturn. The group's short-cycle machining segment reported organic order growth of 5%, driven by double-digit growth from aerospace and energy customers. We maintain SEK 193 fair value estimate and view shares as fairly valued.