Q1 2026 Epiroc AB Earnings Call Transcript
Key Points
- Epiroc AB (EPIAF) reported a record high order intake with a 23% organic increase to SEK18.3 billion, driven by strong demand in mining sectors such as copper and gold.
- Equipment orders saw a significant 44% organic growth, while service orders increased by 12% organically, indicating robust demand across different segments.
- The company achieved an adjusted operating margin of 20%, supported by disciplined execution and cost-saving initiatives, despite facing currency headwinds and higher input costs.
- Epiroc AB (EPIAF) demonstrated strong innovation, particularly in autonomous surface drilling equipment, which was recognized as Engineering Product of the Year at the 2026 Digital Engineering Awards.
- The acquisition of Eventspec in South Africa is expected to strengthen Epiroc AB (EPIAF)'s service offering, enhancing its presence in the mining sector.
- Currency fluctuations negatively impacted the company's financials, with a 12% adverse effect on orders and revenues.
- The Tools & Attachment business area faced challenges with a 2% decrease in orders and a significant negative impact on margins due to increased tungsten costs.
- Despite strong order intake, group revenues decreased by 8% to SEK14.4 billion, highlighting challenges in converting orders to revenues.
- The company experienced a decrease in operating profit EBIT to SEK2.8 billion, affected by changes in provisions for share-based long-term incentive programs.
- Cash conversion rate declined to 88% from 100% a year ago, influenced by increased inventories and working capital requirements.
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Hello, and a warm welcome to the Epiroc Q1 Results Presentation. My name is Karin Larsson, Head of IR 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 go ahead.
Thank you, Karin. So Epiroc delivered a strong start to the year with solid operational performance and record high orders received in the first quarter. Organically, orders increased 23% to SEK18.3 billion. And this is a record, which is meaningfully higher than both the previous year as well as previous peaks. The demand was supported by historically high mineral prices in segments to which we have a large exposure, such as copper and gold.
The equipment orders increased 44% organically and the service orders increased 12% organically
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