Epiroc (EPI) Q4 2025 earnings summary

Executive summary

• Mining demand remained robust in 2025, especially for gold and copper, driving 11% organic order growth in Q4 and 7% for the year; infrastructure demand was stable, while construction remained subdued.

• Innovations in automation, electrification, and digitalization advanced, including the world's largest OEM-agnostic autonomous mine, major contracts for autonomous and electric rigs, and new product launches.

• Efficiency measures and operational excellence helped offset negative impacts from currency and tariffs.

• Aftermarket revenues remained stable at 63% of Q4 revenues, with high demand for advanced drill rigs and tools.

• Safety initiatives reduced the injury frequency rate to 3.9.

Financial highlights

• Orders received grew 7% organically to SEK 63 billion, with revenues up 2% to SEK 62 billion for the year; Q4 revenues were SEK 16.1 billion (+4% organic), and operating profit (EBIT) was SEK 3.2 billion with a margin of 19.9%.

• Adjusted operating margin for 2025 and Q4 was 19.6%, slightly down from the prior year.

• Net debt decreased to SEK 11 billion, with a net debt/EBITDA ratio of 0.73 and return on capital employed at 18.9%.

• Operating cash flow was SEK 2.6 billion in Q4, with a 12-month rolling cash conversion rate of 90%.

• Basic earnings per share was SEK 1.94, and the Board proposes a dividend of SEK 3.80 per share, unchanged from last year.

Outlook and guidance

• Mining demand is expected to remain high in 2026, especially for copper and gold, with construction demand anticipated to improve slightly from a low base.

• Tariff headwinds will persist but are expected to ease somewhat in 2026.

• Tungsten price increases will create a margin headwind in Tools and Attachments, with mitigation actions underway.

• Higher M&A activity is expected in 2026, focused on core products and aftermarket.

• Continued focus on automation, electrification, and digital safety solutions.