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Atlas Copco Group (ATCO) investor relations material

Atlas Copco Group CMD 2025 summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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CMD 2025 summary26 Nov, 2025

Strategic direction and growth outlook

  • Maintains focus on sustainable, profitable growth with an 8% average growth target over the business cycle, supported by organic initiatives and selective acquisitions, with 160 acquisitions in the last 10 years.

  • Emphasizes leadership in niche markets through differentiated technology, operational excellence, speed, agility, and a decentralized, asset-light business model.

  • Digitalization and AI are being embedded across all business areas to drive customer value, operational efficiency, and innovation, with a particular push in R&D and service.

  • Global presence is being strengthened with local-for-local production, especially in China and the U.S., to enhance flexibility and resilience amid geopolitical shifts.

  • Innovation and R&D reinvestment are prioritized to secure long-term growth and maintain technology leadership.

Financial performance and guidance

  • Achieved average FX-adjusted revenue growth of 9% from 2015–2024, exceeding the 8% annual target, with profitability and return on capital employed consistently above 20%.

  • Maintained an asset-light, cash-generative model with an average cash conversion of 108% from 2015 to September 2025.

  • Dividend policy targets distribution of about 50% of earnings to shareholders annually.

  • Growth rates may fluctuate due to market cycles, but the 8% target remains central, with service and new technologies expected to support future performance.

  • Operating profit per share has shown consistent growth, reflecting profitability improvements.

Business area developments and innovation

  • Compressor Technique and Power Technique divisions drive growth, with both equipment and service revenues showing strong CAGR (8–13% for key segments since 2015).

  • Service now represents 39% of revenues, with dedicated divisions for customer uptime and data-driven support.

  • Industrial technique is shifting from products to integrated solutions, with growth driven by smart tools, automation, vision systems, and service contracts.

  • Vacuum technique is capitalizing on semiconductor and AI-driven demand, expanding into adjacencies like quantum computing and space, and scaling service offerings.

  • R&D investment is sustained even in challenging times, with a focus on energy efficiency, digital solutions, and expanding addressable markets.

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Q4 202527 Jan, 2026
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Frequently asked questions

The home of industrial ideas

Atlas Copco is basically involved in everything you interact with on a daily basis by producing on the assembly line or in actual consumer products such as the clothes you wear, the car you drive, and the semiconductors in your computer and phone. Last but not least, food and medical equipment.

Atlas Copco's four main business areas:

  • Compressor Technique. Providing compressed air solutions with products such as industrial compressors, gas, process compressors and expanders, and air management systems. A business area riding the trend of increased focus on energy efficiency.

  • Vacuum Technique. A business area that positions the company well in the digitalization of our society with constant needs for miniaturization and more complex production processes. The semiconductor industry is one of the main markets for Atlas Copco’s Vacuum Technique.

  • Industrial Technique. Helping automate customers’ production facilities with higher quality productivity and flexibility. Atlas Copco is a global key player in industrial automation.

  • Power Technique. As the focus continues to shift towards more sustainable solutions, this business area supplies its customers with ergonomic, productive, and safe energy, as well as storage equipment.

Atlas Copco has had a remarkably high and consistent return on capital employed over time. Their average ROCE between 2001-2021 has been 27 percent. Further, the company has also been very active on the M&A front, with 185 acquisitions during roughly 20 years.

Founded in 1873

Founded back in 1873, Atlas Copco is a Sweden-based industrial tools and equipment manufacturer with a market cap of $45 billion.

Atlas Copco originally made products for the railways, but today’s Atlas Copco originated in the early 20th century when the first compressors, tools, and rock drills were manufactured. The restructuring of their operations took off after Gustav Ryd, a young engineer, visited England and the US and brought a pneumatic caulking hammer and a riveting hammer back to Sweden. 

The new machines proved invaluable and became an integral part of their own workshops, and as word spread of their efficiency and reliability, demand grew over the whole nation. As the need for spare parts and replacements increased, Atlas Copco could enter an entirely new line of business by supplying their customers with pneumatic tools and their key spare parts.

Atlas Copco merges and grows

In 1917, the company merged with Diesels Motorer, a marine and stationary diesel engine manufacturer, and renamed itself Atlas Diesel. As the years went on, the company's pneumatics operations flourished and were able to post a 50 percent profit margin in the early 1930s. The Diesel operations, however, were not as successful and were eventually terminated in 1948. This led Atlas to yet another renaming – deriving Copco from the name of a Belgian subsidiary – Compagnie Pneumatique Commerciale.

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