CEO comments

Solid start to 2025
The demand from mining customers was strong in the first quarter. The demand for equipment used in larger infrastructure projects, such as tunneling, was stable, whereas the demand for attachments used for construction work remained weak. Our order intake increased to MSEK 16 586 (14 162), corresponding to an organic growth of 10%. Our large equipment orders amounted to MSEK 600 (400).

Sequentially, compared to the previous quarter, orders received increased 6% organically.

Given the recent geopolitical developments and uncertainty around tariffs, I would like to emphasize that we have an agile, fast paced and global organization. We work on what we can control and adapt when conditions change. We are closely monitoring market developments and have already started to optimize logistics and distribution flows, leverage our global manufacturing footprint, explore alternative suppliers, as well as discuss potential pricing impact with customers.

In the near term, we expect underlying mining demand, both for equipment and aftermarket, to remain at a high level. The construction demand is, however, expected to remain weak.

Revenues and profitability
Our revenues amounted to MSEK 15 536 (14 143), corresponding to an organic growth of 3%. The operating profit, EBIT, increased 12% to MSEK 3 088 (2 760), and the adjusted EBIT increased by 7%. The adjusted operating margin was 19.9% (20.4). In addition to our continuous dedication to innovation, we remain focused on operational efficiency, cost control, and margin resilience across the Group.

Sequentially, the adjusted margin improved, driven by increased efficiency, both organically and in the acquired companies.

Cash flow
Our operating cash flow was MSEK 1 569 (1 778), supported by increased operating profit, but negatively impacted by build-up in working capital and currency. The cash conversion rate (rolling 12 months) was 100%.

Showcasing the future of construction at Bauma in Munich
During the first quarter, we prepared for Bauma 2025, the world's largest construction tradeshow, held in the beginning of April. At the tradeshow, we showcased many of our new, advanced products and solutions; from deconstruction and recycling to quarrying and tunneling. These include the EC 100 hydraulic breaker with new wear bushing system and the SmartROC T40 surface drill rig with a brand-new, highly ergonomic and safe cabin.

Our largest contract ever
After the close of the first quarter, we were awarded the largest order contract in the history of Epiroc. We will deliver a fleet of fully autonomous and electric surface mining equipment to Fortescue.

Fortescue is an Australia based technology, energy and metals group, focused on accelerating the commercial decarbonization of the industry. The company, which is also one of the world’s largest iron ore producers, has ordered a fleet of Epiroc blasthole drill rigs; the cable-electric Pit Viper 271 E and the battery-electric SmartROC D65 BE. The equipment will be used at the company’s iron ore mines in the Pilbara region in Western Australia. The equipment order contract is valued at around MAUD 350 (SEK 2.2 billion) over five years. In addition, Epiroc will provide services and spare parts.

Many of the orders recently won include automation and electrification. I am proud and confident that we, with our innovative spirit at Epiroc, have created a leading position within these areas.

Please find the full interim report here.