Company Reports

Epiroc is a Swedish mining and infrastructure equipment group that was spun off from Atlas Copco in 2018. It operates through the equipment and service segment and the tools and attachments segment, with mining accounting for around 80% of group revenue.

We transfer coverage of Epiroc, a Swedish mining and infrastructure equipment group with a dominant global position in hard-rock drilling, underground load and haul, and associated aftermarket services.

Epiroc has enjoyed superior operating metrics and greater resilience than competitors in the mining supply chain through its focus on niche mining equipment used in harsh operating conditions with high aftermarket requirements. Half of the group's revenue is from servicing equipment, which makes Epiroc less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Its direct sales model and extensive global sales network have resulted in close customer relationships, fostering future product innovation and creating high barriers to entry. Over one-fourth of its orders are from copper production, a key metal to help decarbonize several industries. Gold is the second-largest commodity, representing 23% of group orders.

Epiroc reported second-quarter results on July 17. Organic sales increased 11% and orders were up 13%, driven by strong mining activity in gold and copper. Shares traded 6% lower intraday.

Epiroc confirmed its annual revenue growth target of 8% over a business cycle at its capital markets day on June 8, 2026. The split of revenue growth is expected to be two-thirds organic and one-third from acquisitions.

Epiroc has enjoyed superior operating metrics and greater resilience than competitors in the mining supply chain through its focus on niche mining equipment used in harsh operating conditions with high aftermarket requirements. Half of the group's revenue is from servicing equipment, which makes Epiroc less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Its direct sales model and extensive global sales network have resulted in close customer relationships, fostering future product innovation and creating high barriers to entry. Over one-fourth of its orders are from copper production, a key metal to help decarbonize several industries. Gold is the second-largest commodity, representing 23% of group orders.

Alongside its record order growth in the first quarter, Epiroc delivered 2% organic sales growth and a modest 50-basis-point margin expansion, as operational efficiency gains offset current cost headwinds. Shares are trading 8% higher intraday.

Epiroc has enjoyed superior operating metrics and greater resilience than competitors in the mining supply chain through its focus on niche mining equipment used in harsh operating conditions with high aftermarket requirements. Half of the group's revenue is from servicing equipment, which makes Epiroc less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Its direct sales model and extensive global sales network have resulted in close customer relationships, fostering future product innovation and creating high barriers to entry. Over one-fourth of its orders are from copper production, a key metal to help decarbonize several industries. Gold is the second-largest commodity, representing 23% of group orders.

Epiroc reported 2% organic sales growth and 7% organic order growth for 2025. Order growth was driven by robust demand from mining customers, which contribute approximately 80% of group orders. Shares were trading 6% higher intraday on Jan. 26.

Epiroc reported a 6% decline in its adjusted operating profit during the third quarter. Higher tariffs and an unfavorable product mix in its equipment and services segment were the most significant contributors. Shares are trading 8% lower intraday.

Epiroc has enjoyed superior operating metrics and greater resilience than competitors in the mining supply chain through its focus on niche mining equipment used in harsh operating conditions with high aftermarket requirements. Half of the group's revenue is from servicing equipment, which makes Epiroc is less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Its direct sales model and extensive global sales network has resulted in close customer relationships, fostering future product innovation and creating high barriers to entry. One fourth of its orders are tied to copper production, a key metal to help decarbonize several industries.

Epiroc reported 2% organic order intake growth year over year in the second quarter, missing the company-compiled consensus of 5% and lagging its closest peer, Sandvik. Shares are trading 8% lower intraday.

Epiroc's first-quarter 2025 results exceeded company-compiled consensus across the board. Organic order intake grew 10%, surpassing consensus of 7%. Shares are trading 2% higher intraday.

We've updated our view on Swedish mining equipment suppliers Epiroc and Sandvik. Epiroc is a pure play of niche mining equipment with high aftermarket requirements, while Sandvik has two other business segments, machining and rock processing, which contribute half of its revenues.

Epiroc has enjoyed superior operating metrics and greater resilience than competitors in the mining supply chain through its focus on niche mining equipment used in harsh operating conditions with high aftermarket requirements. Half of the group's revenue is from servicing equipment, which makes Epiroc is less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Its direct sales model and extensive global sales network has resulted in close customer relationships, fostering future product innovation and creating high barriers to entry. One fourth of its orders are tied to copper production, a key metal to help decarbonize several industries.

Epiroc reported a 6% decrease in operating profit, or 4% after excluding one-off items that include restructuring charges, for 2024.

Narrow-moat Epiroc’s impressive third-quarter results reflect healthy demand for new mining equipment, underpinned by the industry trend toward improving productivity through autonomous equipment. Organic order intake grew 6% year over year, which included SEK 1.4 billion of large equipment orders and is comfortably ahead of its closest peer Sandvik. We believe Epiroc's 8% order growth will set it up nicely to deliver mid-single-digit revenue growth in fiscal 2025 and provides a long runway to deliver aftermarket services. The market appears to be pricing in Epiroc’s robust outlook with shares trading at a 15% premium to our SEK 180 fair value estimate, which we maintain.

Epiroc has managed to enjoy superior operating metrics and greater resilience than competitors within the mining supply chain through its track record of innovative mining solutions and recurring aftermarket revenue. By specializing in niche equipment, which has high aftermarket requirements, Epiroc is less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Differentiation in drilling equipment and underground trucks has been achieved through specialized knowledge via investment into research and development, or R&D, and strong customer relationships. One third of its orders are to copper mines, a key metal to help decarbonize several industries.

Demand for narrow-moat Epiroc‘s mining equipment and services continued at an impressive pace in second-quarter 2024, growing 1% organically year over year and beating company-compiled consensus of a slight contraction. Order intake benefited from SEK 950 million worth of large equipment orders, compared with SEK 550 million during second-quarter 2023, an indication that underlying confidence in mining investment remains at high levels. Organic order growth for services of 5% year over year is impressive and consistent with our short- and long-term forecasts, underpinned by secular growth themes of midlife service rebuilds and demand for automation offerings to improve customer efficiencies. Shares are trading 5% lower on disappointing operating margins. However, we are confident that Epiroc‘s operating margins can return to typical levels of more than 20% following the implementation of its recent restructuring program and integration of its record acquisition of Stanley Infrastructure. Shares continue to trade at a 15% premium to our SEK 180 fair value estimate, which we maintain.

Epiroc has managed to enjoy superior operating metrics and greater resilience than competitors within the mining supply chain through its track record of innovative mining solutions and recurring aftermarket revenue. By specializing in niche equipment, which has high aftermarket requirements, Epiroc is less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Differentiation in drilling equipment and underground trucks has been achieved through specialized knowledge via investment into research and development, or R&D, and strong customer relationships. One third of its orders are to copper mines, a key metal to help decarbonize several industries.