Epiroc Ab (publ) Stock Earnings Reports

Epiroc delivered a strong Q2: orders received rose 13% organically to SEK 17.3bn (equipment orders +30% organically; service orders +6%), and invoicing increased ~11% organically to SEK 16.7bn. Adjusted EBIT rose 17% year‑over‑year to SEK ~3.35bn with an adjusted EBIT margin of ~20.1% (reported adjusted margin 19.9% including LTI effects). Key drivers were high equipment invoicing, continued resilience in the aftermarket (aftermarket = 64% of revenues; service 41%, Tools & Attachments 23%), and efficiency measures enacted in prior quarters. Equipment & Service orders were particularly strong (17% growth) with exploration demand highlighted as robust; large orders were SEK 720m (lumpy by nature). Tools & Attachments grew modestly (orders +4% organic) and margin trends improved as tungsten cost impacts were largely mitigated. Cash generation strengthened: operating cash flow SEK 1.9bn, 12‑month cash conversion ~93%, net debt down to SEK 11.4bn (net debt/EBITDA ~0.75). Working capital rose (inventories +SEK 4.6bn) reflecting higher activity and factory ramp‑up, but net working capital as % of revenues improved slightly. Headwinds/risks called out: currency volatility (FX was a headwind to EBIT but less so than prior quarter), mix effects from higher equipment invoicing can pressure near‑term margins, and the typical lumpiness of large orders. Management expects mining demand to remain high and infrastructure demand to improve somewhat in the near term, and reiterated focus on automation, electrification, aftermarket growth and ongoing efficiency measures.