Epiroc (EPI) investor relations material

Executive summary

• Orders received reached a record MSEK 18,340, up 11% year-over-year and 23% organically, driven by strong mining demand and high mineral prices, especially in copper and gold.

• Equipment orders grew 44% organically, service orders up 12%, and double-digit growth in exploration and tools.

• Revenues increased 2% organically to MSEK 14,351, despite an 8% reported decline due to a 12% negative currency impact.

• Adjusted operating margin improved to 20.0% from 19.9% last year, supported by efficiency measures and cost discipline.

• Strong mining demand, especially for automation and autonomous equipment, drove growth across all regions except Europe.

Financial highlights

• Operating profit (EBIT) was MSEK 2,846, with an operating margin of 19.8%; adjusted EBIT was MSEK 2,868.

• Net debt decreased to MSEK 10,496, net debt/EBITDA at 0.71, and cash position at MSEK 9,214.

• Return on capital employed was 18.5%, down from 20.3% year-over-year.

• Cash conversion rate at 88% (down from 100% last year); working capital increased to MSEK 23,484.

• Basic EPS was SEK 1.74, down from SEK 1.82 year-over-year.

Outlook and guidance

• Mining demand expected to remain high in the near term; construction demand anticipated to improve gradually from a low base.

• Production ramp-up planned to meet strong order intake, with increased output and deliveries expected in coming quarters.

• Negative impact from tungsten input costs expected to gradually decrease over the year.