GICS Sector : Industrials
Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in Sweden.It operates through Equipment & Service and Tools & Attachments segments.The Equipment & Service segment provides equipment and solutions for rock drilling, mechanical rock excavation, rock reinforcement, loading and haulage, exploration drilling, and ventilation systems, as well as drilling equipment for water and energy; and related spare parts, services, and solutions.
Epiroc's financial performance in 2025 was marked by a revenue growth of 2% to SEK 62 billion, with an adjusted operating margin of 19.6%. The company's earnings per share (EPS) came in at SEK 1.94, slightly above estimates of SEK 1.93. The strong mining demand, which accounted for 79% of orders, drove the company's organic order growth of 7% in 2025. In Q4, orders received grew organically by 11% to almost SEK 16 billion, driven by robust customer activity within mining.
Publication Date: Feb -02
The Equipment & Service business area saw orders increase by 13% organically, driven by strong underlying growth within equipment. Revenues were SEK 12.5 billion, with an organic growth of 4%. The Tools & Attachment business area saw orders decrease by 7%, but organic growth was 4% driven by mining demand. The business area's mitigating actions, such as an accelerated drill bit recycling program, are in place to address the challenges posed by tungsten price increases.
Epiroc won several significant orders, including a SEK 2.2 billion contract to deliver autonomous and electric surface blasthole rigs to Fortescue in Australia. The company also completed the conversion of the Roy Hill mines mixed fleet to driverless operation in Australia and advanced mixed fleet automation at Newmont's Cadia mine. The company had more than 3,900 driverless machines in operation, a 13% increase from 2024.
Epiroc expects mining demand to remain high, while demand from construction customers is expected to increase somewhat from a low level. Analysts estimate next year's revenue growth at 7.5%. With a current P/E Ratio of 35.15 and an EV/EBITDA of 20.87, the market appears to be pricing in a relatively high growth rate. The company's strong financial position, with a net debt-to-EBITDA ratio of 0.73, and a return on capital employed of 18.9%, supports its ability to invest in growth initiatives.
The Board proposes an ordinary dividend of SEK 3.80 per share, amounting to SEK 4.6 billion in total, which is in line with the dividend policy. Epiroc's capital allocation strategy involves bolt-on acquisitions, organic growth, and efficiency measures, with a focus on core products and aftermarket areas. The company aims to improve margins in acquired businesses before pursuing further M&A.
Underground Mining Equipment Industry Report 2025-2030: Sandvik, Epiroc and Caterpillar Dominate with 75% Market Share
Feb -18
Epiroc AB (EPIAF) Q4 2025 Earnings Call Highlights: Strong Order Growth Amid Margin Pressures
Jan -26
Epiroc (OM:EPI A): Is the Recent Pullback Creating a Valuation Opportunity?
Nov -08
Deutsche Bank ADR Virtual Investor Conference: Presentations Now Available for Online Viewing
Nov -05
CORRECTION -- International companies to host live webcasts at Deutsche Bank’s Depositary Receipts Virtual Investor Conference on November 04, 2025
Oct -31
International companies to host live webcasts at Deutsche Bank’s Depositary Receipts Virtual Investor Conference on November 04, 2025
Oct -30
Global Mining Autonomous Surface Blast-hole Drills Development Research Report: Australia Leads in Deployment, with Anglo American As a Top User
Sep -30
Mining Equipment Global Industry Report 2024-2030: Caterpillar, Komatsu, Epiroc, Sandvik, Liebherr Lead the Future $81 Billion Market
Sep -22
Increasing demand for Epiroc's sustainable and autonomous mining equipment, driven by growing environmental concerns and need for operational efficiency, will drive growth. Expansion in emerging markets and investments in digitalization and electrification will further boost demand for Epiroc's services and equipment.
Epiroc AB's tools and attachments for drilling and mining is driven by increasing demand for electrification and automation in mining, growing need for efficient and sustainable mining practices, and rising investments in infrastructure development.
Epiroc’s common group functions support overall operations, driving growth through efficient resource allocation, technology innovation, and enhanced customer experience, ultimately contributing to the company's long-term success.
Epiroc AB's growth is driven by its focus on sustainability and digitalization, leading to increased demand for its drilling equipment and services.
Epiroc's drill rigs are designed for mining, quarrying, and construction applications, offering high productivity and reliability.
Epiroc's loaders and trucks are designed for efficient and safe transportation of materials in mining, quarrying, and construction applications.
Epiroc's rock drilling tools are designed for drilling and blasting in mining, quarrying, and construction applications, offering high performance and durability.
Epiroc's exploration drilling equipment is designed for geological exploration and mining applications, offering high precision and reliability.
Epiroc's in-situ rock reinforcement solutions are designed for stabilizing rock formations in mining, quarrying, and construction applications.
Epiroc's ventilation systems are designed for improving air quality and reducing heat in mining, quarrying, and construction applications.
Epiroc's digital solutions are designed for optimizing mining, quarrying, and construction operations, offering real-time data analytics and automation.
The threat of substitutes for Epiroc AB (publ) is medium due to the availability of alternative products and services in the mining and construction industries.
The bargaining power of customers for Epiroc AB (publ) is low due to the company's strong brand reputation and the lack of buyer concentration in the industry.
The bargaining power of suppliers for Epiroc AB (publ) is medium due to the presence of multiple suppliers in the market and the company's moderate dependence on them.
The threat of new entrants for Epiroc AB (publ) is low due to the high barriers to entry in the industry, including the need for significant capital investment and technological expertise.
The intensity of rivalry for Epiroc AB (publ) is high due to the presence of several established competitors in the industry, leading to a highly competitive market.
| Value | |
|---|---|
| Debt Weight | 27.51% |
| Debt Cost | 8.40% |
| Equity Weight | 72.49% |
| Equity Cost | 8.40% |
| WACC | 8.40% |
| Leverage | 37.95% |
Value: 6.3
Growth: 6.1
Quality: 4.7
Yield: 6.9
Momentum: 7.0
Volatility: 9.0
1-Year Total Return ->
Value: 4.1
Growth: 6.7
Quality: 5.0
Yield: 8.0
Momentum: 4.0
Volatility: 8.3
1-Year Total Return ->
Value: 3.7
Growth: 6.4
Quality: 4.3
Yield: 8.8
Momentum: 4.0
Volatility: 6.3
1-Year Total Return ->
Value: 6.5
Growth: 4.8
Quality: 3.2
Yield: 6.9
Momentum: 4.0
Volatility: 5.0
1-Year Total Return ->
Value: 2.4
Growth: 6.8
Quality: 4.9
Yield: 5.0
Momentum: 4.5
Volatility: 6.0
1-Year Total Return ->
Value: 2.0
Growth: 6.2
Quality: 7.1
Yield: 3.1
Momentum: 3.5
Volatility: 5.7
1-Year Total Return ->