Sweden · Delayed Price · Currency is SEK Epiroc AB Earnings Call Transcripts
Fiscal Year 2026
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Strong Q2 performance driven by robust mining demand, 13% organic order growth, and improved profitability with an adjusted EBIT margin of 20.1%. Aftermarket and equipment revenues remained resilient, supported by efficiency gains and innovation in electrification and automation.
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Targets 8% annual growth with a focus on mining, automation, and electrification, aiming for SEK 100 billion revenue by 2031. Aftermarket and service drive resilience and high margins, while digitalization and sustainability underpin strategy. Expansion in key markets and disciplined capital allocation support long-term profitable growth.
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Record organic order growth of 23% was driven by strong mining demand and high mineral prices, with equipment orders up 44% and service up 12%. Margins improved due to efficiency measures, despite currency and input cost headwinds.
Fiscal Year 2025
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Organic orders and revenues grew despite currency and tariff headwinds, with mining demand robust and strong innovation in automation and electrification. Margins were slightly lower, but efficiency measures and cost controls are yielding results, and the outlook for mining remains positive.
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Safety and technology leadership was highlighted by rapid automation deployment and major contracts in electrification and digitalization. Aftermarket services drive resilient growth, with strong cash flow and ongoing innovation in automation, electrification, and new product launches.
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Organic order growth reached 7% despite a 3% revenue decline, with strong mining demand and a recovery in attachments as destocking ends. Operating margin was pressured by tariffs, but cash flow rose 38% and efficiency measures are expected to further support margins in coming quarters.
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High mining demand and strong service growth offset currency headwinds and weak construction, with the largest-ever contract signed for autonomous and electric mining equipment. Efficiency measures improved margins in tools and attachments, and the outlook remains robust for mining, especially in copper and gold.
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The conference highlighted a strong focus on innovation, automation, and electrification, driving productivity and sustainability in mining and construction. Financial performance remains robust, with high recurring revenue, strong cash generation, and ambitious sustainability targets for 2030.
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Strong mining demand drove 29% organic equipment order growth and 17% total order growth year-over-year, with revenues up 10% and adjusted EBIT up 7%. Construction demand remains weak, but the outlook for mining and aftermarket is robust, supported by a record autonomous fleet contract.
Fiscal Year 2024
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Record orders and revenues driven by strong mining demand and strategic acquisitions, with aftermarket and digital solutions showing robust growth. Margins were diluted by acquisitions and weak construction, but efficiency actions and sustainability efforts are yielding results. Mining outlook remains strong, while construction is expected to stay weak.
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Strong mining demand drove record equipment orders and solid service growth, while construction remained weak. Margins were impacted by mix and acquisitions, but cost-saving measures and efficiency improvements are yielding results. Mining outlook remains robust; construction is expected to stay soft.
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Strong growth is driven by innovation in automation, electrification, and digitalization, with a focus on recurring revenues from aftermarket and digital solutions. Sustainability and circularity are embedded, while operational excellence and financial discipline support long-term value creation. Aftermarket and service contracts are expanding, and digital solutions are scaling globally.
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Mining demand and large orders remained strong, while construction markets weakened, impacting margins and Tools & Attachments. Efficiency measures and acquisitions were key themes, with further headcount reductions planned and sustainability efforts recognized.