Atlas Copco Group (ATCO) Q4 2025 earnings summary

Executive summary

• Achieved 4% organic order growth in Q4 2025, with revenues flat year-over-year and solid cash flow despite negative currency effects.

• Operating profit and margins declined due to negative currency effects, tariffs, and acquisition-related costs.

• Service business delivered strong results across all divisions, with continued growth throughout the year.

• Full-year orders up 1% organically, with revenues down 5% and operating profit down 11% year-over-year.

• Board proposes a total dividend of SEK 5.00 per share (SEK 3.00 ordinary, SEK 2.00 extra), paid in two installments.

Financial highlights

• Q4 adjusted operating profit: MSEK 8,772 (margin 20.5%); reported operating profit: MSEK 8,470 (margin 19.8%).

• Q4 revenues: MSEK 42,782 (down 7%); basic EPS: SEK 1.36.

• Full-year orders: MSEK 165,814 (up 1% organically); revenues: MSEK 168,343 (down 5%); profit for the period: MSEK 26,425; basic EPS: SEK 5.43.

• Q4 operating cash flow: MSEK 6,777; full-year: MSEK 26,796.

• Return on capital employed for the group was 24% (down from 28%).

Outlook and guidance

• Near-term demand expected to remain at current levels, with a mixed outlook across segments.

• Semiconductor market shows increased customer interactions but no clear sign of imminent order growth.

• Automotive and general industrial segments remain challenging.

• Currency headwinds expected to continue, with an estimated SEK 1 billion negative impact in Q1 2026.

• Effective tax rate expected to rise to 22.5% in Q1 2026 as one-off benefits subside.