Atlas Copco Reports Resilient Service Growth Despite Macroeconomic Uncertainty in Q2 2025
Vagner Rego, President and CEO of Atlas Copco Group, offered insight into the company’s performance during the second quarter of 2025, highlighting both challenges and positive developments across the global industrial landscape. The quarterly report released today reflects a mixed financial performance, characterized by persistent macroeconomic headwinds, currency fluctuations, and a steady underlying demand for service-related offerings.
“The macroeconomic environment has remained uncertain throughout the quarter,” Rego stated in his official remarks. “Despite this, the overall demand for Atlas Copco Group’s products and services remained relatively stable compared to the previous year.” He further emphasized that service demand, which includes the company’s specialty rental business, continued to strengthen across all geographic regions, demonstrating the resilience and reliability of Atlas Copco’s aftermarket operations.
Order Intake and Revenue Performance
During the second quarter, Atlas Copco recorded an order intake of MSEK 40,087, reflecting a decrease of 8% compared to the same period last year when the company achieved MSEK 43,654. The negative impact of currency fluctuations—primarily the strength of the Swedish krona against major trading currencies—was a significant factor, accounting for a 9% reduction. On an organic basis, which excludes currency and structural changes, the decline in order intake was just 1%, suggesting relatively steady underlying business activity.
Revenues for the quarter totaled MSEK 41,210, an 8% drop from MSEK 44,803 in the second quarter of 2024. Organically, revenue decreased by 2%. These figures indicate that while overall sales volumes were lower, the core business maintained much of its previous year’s momentum, especially when adjusted for external variables.
Profitability and Margins
Operating profit for Q2 2025 reached MSEK 8,493, compared to MSEK 9,466 in the same quarter of the prior year. This translates to an operating margin of 20.6%, a slight decrease from the 21.1% margin reported in Q2 2024. The adjusted operating profit, which excludes items affecting comparability, was MSEK 8,411—down from MSEK 9,785—resulting in a margin of 20.4% versus 21.8% previously. These figures underscore the pressure on profitability, driven largely by reduced sales volumes, unfavorable currency movements, and input cost dynamics.
Return on capital employed (ROCE), a key indicator of financial efficiency and profitability, stood at 26% during the quarter, down from 29% in the same period last year. This decline, while still indicative of strong returns, reflects the broad-based financial impact of current market uncertainties.
Strategic Acquisitions and Innovation Investments
Despite the economic headwinds, Atlas Copco continued to advance its strategic growth agenda through targeted acquisitions. “During the quarter, we have acquired several exciting companies,” Rego shared. “We are pleased to welcome new technology, competence, and people to the Group.”
These acquisitions are expected to bolster Atlas Copco’s product portfolio, expand its technological capabilities, and enhance customer offerings across multiple industries. Rego highlighted that the integration of these new companies will bring not only talent and intellectual property but also new growth opportunities in adjacent and emerging markets.
One of the quarter’s significant milestones was the inauguration of Atlas Copco’s new manufacturing and innovation facility—the Wuxi campus—located in Jiangsu Province, China. Opened in May, this campus is poised to play a crucial role in enhancing the Group’s production efficiency, local supply chain strength, and regional R&D capabilities. The facility represents Atlas Copco’s long-term commitment to the Chinese market and the broader Asia-Pacific region.
Near-Term Outlook
Looking ahead, the company maintains a cautious but measured stance. “In the near term, while the outlook for the global economy continues to be uncertain, Atlas Copco Group expects that the customer activity will remain at the current level,” Rego noted. This reflects a continuation of the “wait-and-see” sentiment prevalent across industrial sectors as businesses navigate geopolitical volatility, fluctuating commodity prices, and interest rate movements.
The company’s focus in the coming quarters will remain on strengthening its service ecosystem, investing in digital and sustainable technologies, and integrating newly acquired businesses to create long-term value. The continued stability of customer demand, particularly for aftermarket services, remains a key driver of recurring revenue and operational resilience.
