Epiroc (EPI) Q2 2025 earnings summary

Executive summary

• High mining demand and a record SEK 2.2 billion contract for autonomous and electric mining equipment in Australia drove performance, with strong service and tools orders, but construction and attachments demand remained weak.

• Focus on profitable growth, operational excellence, and long-term delivery, supported by innovation in automation, electrification, and BEV trolley truck solutions that increased productivity by 23%.

• Aftermarket represented 67% of revenues, with service at 43%, both up slightly year-over-year; mining customers accounted for 79% of orders.

• Efficiency measures and site consolidations continued, including moving tools manufacturing from Canada to Mexico and discontinuing non-strategic product lines.

• Recognized among the world's most sustainable companies by TIME Magazine for the second year.

Financial highlights

• Group revenues declined 8% to SEK 15.1 billion (MSEK 15,130), mainly due to negative currency impact of 9%, but organic growth was 1%.

• EBIT decreased to SEK 2.8 billion (MSEK 2,831), margin improved to 18.7% from 17.7%; adjusted EBIT margin was 19.7%.

• Operating cash flow was SEK 1.1 billion (MSEK 1,104), lower year-over-year due to working capital build-up and lower profit.

• Net debt reduced to SEK 13.3 billion (MSEK 13,284), with a net debt/EBITDA ratio of 0.82.

• Cash conversion rate was 94%, up from 90% last year.

Outlook and guidance

• Mining demand expected to remain high in the near term, while construction demand is anticipated to stay weak.

• Strong pipeline for copper and gold projects, with expansion and exploration activities increasing.

• No concerns about organic revenue growth due to a robust pipeline and timing of equipment invoicing.

• Normal seasonality expected in Q3, with Q3 typically lower than Q2.