Epiroc (EPI) Q1 2025 earnings summary

Executive summary

• Achieved largest-ever contract: AUD 350 million (SEK 2.2 billion) over five years for a fully autonomous and electric mining fleet in Australia, marking a significant step in mining innovation.

• Strong mining demand drove a 17% increase in group orders received, with equipment orders up 29% organically year-over-year.

• Revenues increased 10% to SEK 15.5 billion (MSEK 15,536), with adjusted EBIT up 7% to SEK 3.1 billion and operating profit up 12% to MSEK 3,088; margin at 19.9%.

• Aftermarket represented 67% of revenues, with high mining activity offsetting weak construction demand.

• Continued focus on innovation, automation, and operational excellence, including efficiency actions and sustainability improvements.

Financial highlights

• Orders received reached SEK 16.6 billion (MSEK 16,586), up 17% YoY (10% organic, 7% acquisition).

• Adjusted EBIT: SEK 3.1 billion (MSEK 3,099), up 7% YoY; margin 19.9%.

• Operating cash flow: SEK 1.6 billion (MSEK 1,569), with 100% cash conversion rate.

• Net debt: SEK 12.3 billion (MSEK 12,317); net debt/EBITDA ratio 0.76; ROCE at 20.3%.

• Return on capital employed: 20.3%, down from 24.5% YoY due to increased intangibles from acquisitions.

Outlook and guidance

• Mining demand for equipment and aftermarket expected to remain high; construction demand to stay weak.

• Strong pipeline for both replacement and large orders in mining; positive outlook for equipment demand.

• General market uncertainty acknowledged, but organization remains agile and adaptive.