Epiroc (EPI) Q1 2025 earnings summary

Executive summary

• Orders received rose 17% to SEK 16,586 million, with equipment orders up 29% organically year-over-year, driven by strong mining demand.

• Revenues increased 10% to SEK 15,536 million (3% organic), and adjusted EBIT rose 7% to SEK 3,099 million, with an operating margin of 19.9%.

• Secured the largest contract in company history: AUD 350 million (SEK 2.2 billion) over five years for autonomous, electric mining equipment in Australia.

• Aftermarket represented 67% of revenues, with tools and attachments gaining share and mining activity offsetting weak construction demand.

Financial highlights

• Orders received: SEK 16,586 million, up 17% year-over-year (10% organic, 7% acquisition).

• Adjusted EBIT: SEK 3,099 million, up 7%; margin at 19.9%.

• Operating profit: SEK 3,088 million, up 12% year-over-year.

• Operating cash flow: SEK 1,569 million, with a 100% cash conversion rate.

• Net debt: SEK 12,317 million; net debt/EBITDA ratio at 0.76; ROCE at 20.3%.

• Proposed dividend: SEK 3.80 per share (53% payout ratio).

Outlook and guidance

• Mining demand for equipment and aftermarket expected to remain high; large order pipeline remains strong.

• Construction demand anticipated to stay weak; market uncertainty remains elevated.

• Organization remains agile, with ongoing efficiency and cost-saving initiatives.