Atlas Copco (ATCO) Q4 2025 earnings summary

Executive summary

• Achieved 4% organic order growth in Q4 2025, mainly from Compressor and Vacuum Technique, while revenues remained flat or declined year-over-year due to high 2024 base and currency headwinds.

• Service business delivered strong results across all divisions, offsetting weaker demand in Industrial Assembly, Vision Solutions, and Power Technique.

• Operating profit and margins declined, impacted by negative currency effects, tariffs, and acquisition-related costs; SEK 261 million provision booked for Industrial Technique restructuring.

• Cash flow remained solid, with eight acquisitions completed in Q4 and 29 for the 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%); basic EPS: SEK 1.36.

• Full-year organic orders up 1%, revenues down 1% organically; adjusted operating margin for the year at 20.7%.

• Q4 cash flow at SEK 6.8 billion (MSEK 6,777), lower than last year due to less positive working capital changes and lower operating profit.

• Full-year operating cash flow: MSEK 26,796; profit for the period: MSEK 26,425; basic EPS: SEK 5.43.

• SEK 12 billion used for acquisitions in 2025.

Outlook and guidance

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

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

• Currency headwinds expected to persist, 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 in Q4 2025 will not repeat.