Epiroc (EPI) Deutsche Bank ADR Virtual Investor Conference 2025 summary

Safety and technology highlights

• Rapid deployment of mixed fleet automation kit enabled a successful mine rescue, showcasing OEM-agnostic solutions that enhance safety and interoperability in mining operations.

• Automation, electrification, and digitalization are key industry trends, with significant investments in each to boost productivity, safety, and sustainability.

• The world's largest OEM-agnostic autonomous mine was established in Australia, automating 78 trucks and achieving a SEK 300 million milestone.

• Collision avoidance systems and digital safety features are being widely adopted, with major contracts such as Hindustan Zinc equipping all mines in India.

• Electrification efforts are expanding, with 39 mining sites using electric solutions and a major SEK 2.2 billion contract with Fortescue for surface equipment.

Business model and financial performance

• Aftermarket services represent about 67% of business, providing resilience and strong cash flow.

• Orders and revenue have grown at an 8% CAGR since 2018, with a focus on profitable niches and operational excellence.

• EBIT margins remain around 20%, with ongoing efforts to improve margins in tools and attachments and service segments.

• Cash flow remains robust, with a 38% year-on-year decrease to SEK 2.5 billion, and a policy to pay out 50% of net profit as dividends.

• Supply chain and tariff risks are managed through rerouting shipments and inventory adjustments, with tariffs impacting EBIT margin by about 0.5% in Q3.

Strategic outlook and innovation

• R&D spend is about 3% of revenue, with 9% of equipment revenue reinvested in innovation; 61% of equipment sold in 2024 was launched in the last five years.

• New product launches include the Minetruck 66, a hybrid underground truck expected to be a key growth driver.

• Electrification and automation are expected to drive future growth, with a focus on OEM-agnostic solutions and expanding digital offerings.

• 2030 goals include halving CO2 emissions from sold machines, doubling women in operational roles, and achieving zero work-related injuries.

• Mining demand is expected to remain high, while construction markets are stabilizing at lower levels; aftermarket and service growth is supported by an aging equipment fleet.