Q2 2025 Epiroc AB Earnings Call Transcript
Key Points
- Epiroc AB (EPIAF) secured its largest contract ever, valued at SEK2.2 billion, for autonomous and electric mining equipment with Fortescue in Australia.
- The company achieved a 2% organic growth in orders, driven by strong mining demand, despite a 7% overall decline due to currency effects.
- Innovations in electrification and automation, such as the BEV trolley truck solution, have significantly increased productivity and reduced costs.
- The aftermarket segment, which includes service and tools, represented 67% of revenues, indicating a strong recurring revenue stream.
- Epiroc AB (EPIAF) has made progress in sustainability, reducing CO2e emissions and being recognized as one of the World's 500 Most Sustainable Companies by TIME Magazine.
- Overall group revenues declined by 8% due to a negative currency impact of 9%, with only a 1% organic growth.
- Orders for large equipment decreased significantly from SEK950 million last year to SEK500 million this quarter.
- The construction sector showed weak demand, negatively impacting the Attachments business.
- Operational challenges, including tariffs and rerouting logistics, have led to increased costs and some impact on EBIT.
- The Tools & Attachments segment experienced a 5% decrease in orders, with a negative currency impact and weak demand from construction customers.
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Hello, and a warm welcome to the Epiroc Q2 results presentation, and thank you for joining us this very busy reporting day. My name is Karin Larsson. I'm Head of IR and Media here at Epiroc. And by my side, I have our CEO, Helena Hedblom; and our CFO, Hakan Folin. As always, they will briefly present the results before we do a Q&A session. You know the drill.
Helena, please, the stage is yours.
Thank you, Karin. And also from me, a warm welcome to all of you. So let me start with the Q2 highlights. So we enjoyed another quarter with high mining demand supporting the organic growth, both year-on-year and sequentially. A major highlight on the Equipment side was the largest contract ever for Epiroc, SEK2.2 billion over five years to deliver a fleet of fully autonomous and electric surface mining equipment to Fortescue in Australia. We mentioned this contract
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