Epiroc (EPI) Q2 2025 earnings summary

Executive summary

• High mining demand drove organic growth and performance, with the largest-ever contract (SEK 2.2 billion over five years) for autonomous and electric mining equipment in Australia.

• Solid growth in service and tools, with aftermarket representing 67% of revenues and service at 43%, but weak demand persisted in construction and attachments.

• Efficiency and cost-saving measures improved margins in tools and attachments, supporting profitability.

• Focus on profitable growth, operational excellence, and innovation in automation and electrification.

• Basic earnings per share rose 3% to SEK 1.74; recognized for sustainability and increased diversity.

Financial highlights

• Group revenues declined 8% to SEK 15.1 billion (MSEK 15,130), mainly due to negative currency impact, but organic revenue growth was 1%.

• EBIT was SEK 2.8 billion (MSEK 2,831), margin 18.7%; adjusted EBIT margin reached 19.7%.

• Tools and attachments segment EBIT increased 33% to SEK 376 million, with adjusted margin up to 12.9%.

• Operating cash flow was SEK 1.1 billion (MSEK 1,104), lower year-over-year due to working capital build-up.

• Net debt reduced to SEK 13.3 billion (MSEK 13,284); net debt/EBITDA ratio at 0.82.

Outlook and guidance

• Mining demand expected to remain high in the near term; construction demand to stay weak.

• Strong pipeline for copper and gold projects, with exploration activity increasing.

• No significant change in seasonality expected for Q3; normal lower activity anticipated.

• Efficiency and cost-saving measures to continue, aiming for profitable growth.

• Focus on agility, global reach, and mitigating uncertainties, including tariffs.