Epiroc AB
OTC:EPIPF
Epiroc AB
In the ever-evolving industrial landscape, Epiroc AB stands as a formidable force, seamlessly blending tradition with rapid innovation. This Swedish company, initially a part of the Atlas Copco Group, embarked on its independent journey in 2018. Epiroc has carved out a niche by specializing in a range of mining and infrastructure equipment. Its core operations pivot around the production of machinery and tools that perform critical functions in the mining, construction, and natural resources extraction sectors. By providing state-of-the-art drills, rock excavation equipment, and machinery for underground applications, Epiroc ensures that its clients receive not just products but comprehensive solutions tailored to boost productivity and safety in challenging environments.
The lifeline of Epiroc's business lies in its aftermarkets offerings, which are as advanced as its machinery. Spare parts, maintenance services, and innovative digital solutions create ongoing value for customers, providing both stability and recurring revenue streams for the company. This diversified approach enables Epiroc to maintain robust customer relationships while fostering long-term ecological and economic sustainability. By continuously investing in digitalization and automation, Epiroc adapts to the dynamic demands of its industries. Its commitment to innovation not only strengthens its foothold in the market but also propels Epiroc toward creating more efficient, environmentally conscious solutions, ultimately sustaining its competitive edge in the global landscape.
In the ever-evolving industrial landscape, Epiroc AB stands as a formidable force, seamlessly blending tradition with rapid innovation. This Swedish company, initially a part of the Atlas Copco Group, embarked on its independent journey in 2018. Epiroc has carved out a niche by specializing in a range of mining and infrastructure equipment. Its core operations pivot around the production of machinery and tools that perform critical functions in the mining, construction, and natural resources extraction sectors. By providing state-of-the-art drills, rock excavation equipment, and machinery for underground applications, Epiroc ensures that its clients receive not just products but comprehensive solutions tailored to boost productivity and safety in challenging environments.
The lifeline of Epiroc's business lies in its aftermarkets offerings, which are as advanced as its machinery. Spare parts, maintenance services, and innovative digital solutions create ongoing value for customers, providing both stability and recurring revenue streams for the company. This diversified approach enables Epiroc to maintain robust customer relationships while fostering long-term ecological and economic sustainability. By continuously investing in digitalization and automation, Epiroc adapts to the dynamic demands of its industries. Its commitment to innovation not only strengthens its foothold in the market but also propels Epiroc toward creating more efficient, environmentally conscious solutions, ultimately sustaining its competitive edge in the global landscape.
Record Order: Epiroc secured its largest-ever contract, worth SEK 2.2 billion over 5 years, to deliver more than 50 fully autonomous and electric machines to Fortescue in Australia.
Strong Mining Demand: Mining sector demand stayed robust, driving a 29% organic increase in equipment orders and supporting strong overall order intake.
Revenue & Profit Growth: Q1 revenue rose 10% to SEK 15.5 billion, with adjusted EBIT up 7% to SEK 3.1 billion, though the adjusted EBIT margin dipped to 19.9%.
Mixed Infrastructure & Construction: Infrastructure demand was stable for large projects, but construction-related attachments remained weak, with only seasonal improvements.
Margin Impact: Lower service share in revenue and mix effects weighed on margins, with service now at 43% of group revenue, down from 46% last year.
Cost Efficiency Actions: Continued focus on efficiency, including workforce reductions (1,000 fewer employees year-on-year) and site consolidations, is starting to benefit results.
Tariffs & Supply Chain: Management is actively mitigating tariff impacts by rerouting logistics, leveraging global manufacturing, and adjusting suppliers.
Positive Sustainability Progress: CO2 emissions from operations dropped 11%, and diversity targets improved, with 20% women in the workforce.
