CEO comments
Strong mining
Just as in recent quarters, the customer activity within mining remained at a high level, supported by historically high mineral prices in segments to which we have a large exposure, such as copper and gold. Orders received increased 13% organically to MSEK 17 305 (15 276). The equipment orders increased 30% organically and our large orders, i.e. orders above MSEK 150, amounted to MSEK 720 (230). The highest growth was achieved within exploration. The investment sentiment within infrastructure and construction projects has improved, which led to stable order development.
Sequentially, organic orders declined by -9%, mainly due to fewer large equipment orders following a particularly strong first quarter.
In the near term, we expect mining demand to remain high and demand from infrastructure customers to increase somewhat.
Double-digit revenue and EBIT growth
Revenues increased to MSEK 16 702 (15 130), corresponding to 11% organic growth, supported by a successful ramp-up in production. Lead times remain at normal levels.
Our operating profit, EBIT, increased 17% to MSEK 3 316 (2 831), with strong organic contribution following actions taken to strengthen efficiency. The operating profit includes items affecting comparability of MSEK -33 (-153), fully explained by the change in provision for the long-term incentive program.
The operating margin, and the adjusted operating margin, improved to 19.9% (18.7) and 20.1% (19.7), respectively.
Our operating cash flow was MSEK 1 902 (1 104) and our cash conversion rate, rolling 12 months, was 93% (94).
Leading innovations at Epiroc World Expo
In June, Epiroc brought together customers from around the world into Örebro, Sweden, to experience Epiroc’s latest innovations. Through presentations, interactive sessions and live demonstrations, the event showcased how Epiroc helps customers achieve safer, smarter and more productive mining operations. Highlights included the diesel-electric Minetruck MT66 S eDrive, automated bolting for rock reinforcement, underground exploration solutions, AI-powered digital and collision avoidance technologies.
Successful Capital Markets Day
Also in June, we welcomed around 100 investors, analysts and financial media to our Capital Markets Day in Örebro. During the event, we reaffirmed our financial goals and highlighted the key drivers of our long-term profitable growth, including innovation, attractive market niches, aftermarket expansion and operational excellence.
Driving customer success through innovation and presence
Through our strong local presence and expanding service footprint we help customers improve productivity and safety while maximizing equipment uptime. Demand for our service solutions remains solid, reflecting the value customers place in availability, reliability and operational performance.
We also continue to see encouraging adoption of our automation and digital solutions. As customers increasingly integrate these technologies into their operations, our relationships deepen and our position as a long-term productivity partner strengthens.
Combining innovation with a strong global presence has been at the heart of Epiroc for decades and remains a key driver of our future growth.
Helena Hedblom,
President and CEO
Please find the full report here. Additional financial documents are found on Epiroc’s Financial publications page.
