Atlas Copco (ATCO) Q2 2025 earnings summary

Executive summary

• Orders received declined 8% year-over-year to MSEK 40,087, with an organic decline of 1%, and revenues fell 8% to MSEK 41,210, organic decline of 2%, impacted by strong currency headwinds.

• Operating profit dropped to MSEK 8,493 (margin 20.6%), negatively affected by currency, but supported by positive volume, price, and mix effects.

• Service and rental businesses continued to grow strongly, offsetting some equipment sales weakness.

• Five acquisitions were completed during the quarter, contributing to structural growth.

• Cash flow remained healthy, supporting ongoing investments and dividend payments.

Financial highlights

• Orders received: MSEK 40,087 (43,654), organic decline 1%; revenues: MSEK 41,210 (44,803), organic decline 2%.

• Operating profit: MSEK 8,493 (9,466), margin 20.6% (21.1%); adjusted operating profit: MSEK 8,411 (9,785), margin 20.4% (21.8%).

• Profit for the period: MSEK 6,525 (7,645); EPS: SEK 1.34 (1.57).

• Operating cash flow: MSEK 6,114 (6,861); return on capital employed: 26% (29%).

• EBITDA margin reached 22% for the quarter.

Outlook and guidance

• Customer activity is expected to remain at current levels amid ongoing global economic uncertainty.

• No improvement in the near-term environment is anticipated; mixed demand is likely to persist.

• Currency effects are expected to remain negative but should moderate if rates stabilize.