Epiroc AB

Latest Results (02.04.2026):

Epiroc AB — Q4 2025: The company reported stable profitability but clear headwinds from currency and tariffs in Q4 2025. Group EBIT margin held at 19.9% (adjusted 19.6%), while FX reduced orders by ~12% and revenues by ~11%. Service remained a growth pillar and represented 41% of revenues, cash generation stayed strong though Q4 operating cash flow fell to MSEK 2,577, and net debt improved to SEK 11.0 billion. The quarter also showed pressures from tariffs and rising tungsten input costs that may weigh on margins into 2026.

Profitability

Operating (EBIT) margin unchanged at 19.9% (19.9); adjusted operating margin slightly down at 19.6% (19.7). FX cost ~0.7 percentage points and tariffs ~0.5 points; organic contribution to margin was +0.6 pp in the period.

Orders & Revenue FX Impact

Currency was a major headwind in Q4 2025: orders received down ~12% and revenues down ~11% versus prior year in reported currency terms. Mining demand remained strongest, with gold and copper prominent across orders.

Service business

Service accounted for 41% of revenues; organic service order growth was +6% in the quarter. Epiroc cites an ageing installed fleet (avg. 8.6 years) and upside to capture more customer share (historical customer share >50%, only ~1/3 on service contracts).

Cash flow & balance sheet

Operating cash flow in Q4 was MSEK 2,577 (vs 3,956 prior-year quarter). Rolling 12‑month cash conversion 90% (104). Net debt down to SEK 11.0bn (14.8) and net debt/EBITDA ~0.73; year‑end cash ~SEK 9.6bn.

Working capital & lead times

Net working capital decreased to SEK 22bn (from SEK 24.3bn); NWC/revenues improved to 36.9% (37.4). Equipment lead times remain normal at roughly 6–9 months from order to invoicing.

Large orders & backlog

Large mining equipment orders (lumpy by nature) were MSEK 670 in Q4 2025 (previously 820). Notable prior contract: a SEK 2.2bn five‑year Fortescue order (conservatively booked).

Electrification & automation

Electrification revenues ~3.8% of Group (4.2). Forty mines have ordered BEVs; Epiroc automation supports >3,900 driverless machines in operation globally (Epiroc and non‑Epiroc units).

Cost pressures — tariffs & tungsten

US tariffs and FX reduced margins; tariffs estimated to cost roughly 0.5 pp on Group margin in mid‑2025 quarters. Tungsten prices rose sharply in 2025 and accelerated further into 2026, creating a margin headwind for Tools (drill bits); Epiroc is adding a surcharge to offset increased COGS and pursuing recycling/efficiency measures.

Items affecting comparability & M&A

Q4 items affecting comparability totaled MSEK +58 (insurance settlement gains, efficiency costs, LTI provision changes). Planned acquisition in South Africa (aftermarket solutions, ~MSEK 160 revenues) expected to close in Q3 2026; company signals higher but targeted bolt‑on M&A activity in 2026.

Capital allocation & other guidance

Priority remains on organic growth and bolt‑on acquisitions close to the core. CapEx expected low over cycle (~2–3% of revenues). Tax rate guidance 22–24%. No margin guidance given, but the stated target is to have the industry‑best operating margin.