Atlas Copco (ATCO) Q3 2025 earnings summary

Executive summary

• Mixed demand with stable overall orders; industrial compressors flat, gas and process compressors down, power equipment and service business showed solid growth, while automotive-related and semiconductor vacuum segments were negative.

• Revenues increased organically by 1% year-over-year, but operating profit declined due to restructuring costs, acquisitions, and trade tariffs.

• Six acquisitions completed, including ABC Compressors and Shareway, strengthening hydrogen/CO2 and China market positions.

• Operating cash flow remained strong at SEK 7.3 billion (MSEK 7,330).

• Basic EPS was SEK 1.37, down from 1.47 last year.

Financial highlights

• Orders received: SEK 40.5 billion (MSEK 40,517), revenues: SEK 41.6 billion (MSEK 41,621), both largely flat year-over-year with 1% organic revenue growth.

• Operating margin at 20.5%, adjusted to 21.3% excluding restructuring costs.

• Net profit for the period: SEK 6.7 billion (MSEK 6,675).

• Return on capital employed: 25% (down from 28%).

• Operating cash flow: SEK 7.3 billion (MSEK 7,330).

Outlook and guidance

• Customer activity expected to remain at the current level in the near term, with continued uncertainty affecting large orders.

• Effective tax rate expected to rise slightly to 21.5%-22% in the near term.

• Currency headwinds anticipated to continue, with a potential SEK 800 million cost impact next quarter.