Atlas Copco Group (ATCO) Q3 2024 earnings summary

Executive summary

• Orders received were stable at MSEK 42,080 in Q3 2024, with 1% organic growth, while revenues declined organically by 1% to MSEK 43,105; service business showed growth across all business areas.

• Operating profit was MSEK 9,337 (margin 21.7%), down from last year, supported by ten acquisitions completed during the quarter.

• Cash flow remained robust, with operating cash flow reaching MSEK 7,545, a significant year-over-year increase.

Financial highlights

• Orders received were MSEK 42,080, up 1% organically; revenues were MSEK 43,105, down 1% organically.

• Operating profit for Q3 was MSEK 9,337 (margin 21.7%), with adjusted operating profit margin at 21.9%.

• Profit for the period was MSEK 7,174; basic EPS was SEK 1.47.

• Operating cash flow reached MSEK 7,545, up from MSEK 6,581 a year ago.

• Return on capital employed was 28%, and return on equity was 29%.

Outlook and guidance

• Customer activity is expected to weaken somewhat in the near term, a downgrade from previous stable expectations.

• No sharp decline anticipated, but increased market hesitation and macroeconomic uncertainty are noted.

• Semiconductor market remains positive, while general industry, automotive, and construction are flat to negative.