Epiroc (EPI) Q4 2025 earnings summary

Executive summary

• Organic orders grew 7% year-over-year to SEK 63 billion, with Q4 2025 organic order growth of 11% and equipment orders up 22%, driven by robust mining demand, especially for gold and copper, while nickel remained weak and infrastructure demand was mixed.

• Innovations in automation, electrification, and digitalization advanced, including the world's largest OEM-agnostic autonomous mine at Roy Hill, major electrification projects, and launches of new products like Minetruck MT33 and next-generation PCD drill bits.

• Efficiency actions and operational excellence measures helped offset negative currency and tariff impacts.

• Aftermarket revenues remained stable at 63% of total, with mining driving growth.

• Insurance settlement gain positively impacted operating profit.

Financial highlights

• Orders received grew 7% organically to SEK 63 billion, with revenues up 2% to SEK 62 billion for the year; Q4 revenues were SEK 16.1 billion (+4% organic, -7% reported), and adjusted EBIT for Q4 was SEK 3.15 billion with a 19.6% margin.

• Operating cash flow for Q4 was SEK 2.6 billion, with a 12-month rolling cash conversion rate of 90%.

• Net debt decreased to SEK 11 billion, with a net debt/EBITDA ratio of 0.73.

• Return on capital employed was 18.9%, down from 20.6% due to higher intangibles and lower profit.

• Gross margin was 36.2%, EBITDA margin 24.7%, and profit margin 19.2%.

Outlook and guidance

• Mining demand expected to remain high in the near term, with construction demand anticipated to increase slightly from a low base; high mineral prices for copper and gold support the outlook.

• Tariff headwinds will persist in 2026 but are expected to be lower than in 2025.

• Tungsten price increases will create a margin headwind for Tools and Attachments in 2026, mitigated by price actions and recycling initiatives.

• Higher M&A activity expected in 2026, focused on core products and aftermarket.

• Actions are being taken to safeguard profitable growth amid currency and tariff headwinds.