Epiroc Reports Q2 2025 Results Amid Strong Mining Demand and Strategic Efficiency Measures
Epiroc, a leading productivity and sustainability partner for the mining and infrastructure industries, has announced its financial and operational performance for the second quarter of 2025. The report reflects a mixed macroeconomic backdrop, with strong demand from mining customers, offset by currency headwinds and weaker activity in the construction sector.
Orders Received and Revenue
During the second quarter, Epiroc received orders amounting to SEK 15,276 million, a decline of 7% compared to SEK 16,349 million in the same period last year. However, the underlying organic growth was positive at 2%, reflecting continued strong customer activity, particularly in the mining segment. Currency fluctuations had a negative impact of 9% on the order intake.
Revenue for the quarter declined 8% to SEK 15,130 million from SEK 16,511 million a year earlier, again affected by a 9% negative currency impact. Despite this, Epiroc achieved 1% organic growth, signaling resilience in core operations, especially in mining services and automation solutions.
Profitability and Margins
Operating profit stood at SEK 2,831 million, slightly below the SEK 2,921 million reported in Q2 2024. The operating margin was 18.7%, up from 17.7% in the prior year, supported by efficiency gains and product mix improvements. Items affecting comparability totaled SEK -153 million, mainly related to strategic efficiency programs. Of this, SEK -147 million stemmed from operational restructuring, including SEK -70 million associated with the closure of the tools manufacturing site in Langley, Canada.
On an adjusted basis, the operating profit reached SEK 2,984 million, compared to SEK 3,246 million in Q2 2024. The adjusted operating margin remained steady at 19.7%, underpinned by strong cost control and improved profitability within the Tools & Attachments segment.
Basic earnings per share increased by 3% year-over-year, reaching SEK 1.74, up from SEK 1.69.
Contract Wins and Market Activity
One of the most significant highlights of the quarter was the awarding of Epiroc’s largest-ever contract by Fortescue Metals Group in Australia. The five-year deal, valued at approximately AUD 350 million (around SEK 2.2 billion), involves the delivery of a comprehensive fleet of fully autonomous and electric surface mining equipment. The first phase of the contract, worth approximately SEK 100 million, was recognized in the second quarter’s order intake. This deal underscores Epiroc’s growing leadership in sustainable mining technologies, especially in electrification and automation.
CEO Helena Hedblom expressed optimism about the mining sector’s outlook, stating, “Customer activity within mining remained high in the quarter. We see an increasing willingness among mining customers to invest, particularly in electrification and automation. Exploration investment is also gaining momentum.”
In contrast, the construction industry continued to exhibit softness, especially in the market for attachments. Despite this, Epiroc recorded a 1% organic increase in total group orders sequentially from the previous quarter, highlighting a degree of short-term stability in demand.
Strategic Focus and Operational Agility
Epiroc continues to drive profitable growth through operational excellence and strategic transformation. The company has taken deliberate steps to consolidate its manufacturing footprint, streamline product offerings, and enhance global supply chain flexibility in response to evolving market dynamics, including tariff uncertainties.
“We are emphasizing agility and global reach by optimizing logistics and distribution, leveraging global manufacturing, and collaborating with both suppliers and customers,” said Hedblom. “This ensures we remain responsive and resilient in a volatile global environment.”
Cash Flow and Financial Position
Operating cash flow for the second quarter amounted to SEK 1,104 million, down from SEK 1,609 million in Q2 2024. The decline was largely due to lower operating profit and increased working capital requirements. Nevertheless, the rolling 12-month cash conversion rate remained strong at 94%, up from 90% in the same period last year.
The net debt to EBITDA ratio improved to 0.82, compared to 1.04 a year ago, reflecting the company’s disciplined capital management and robust balance sheet.
Technological Advancements and Innovation
Innovation remains at the core of Epiroc’s strategy. In Q2, the company introduced several new solutions aimed at enhancing safety and productivity. These included an automated rod magazine for the Diamec exploration rig, designed to improve operator safety while increasing drilling efficiency.
Another notable innovation was the electrified ramp haulage solution developed in collaboration with Boliden and ABB at the Kristineberg mine in Sweden. The electric trolley-based system has led to a 23% productivity gain, a 25% reduction in maintenance costs, and a significant energy recovery advantage during downhill travel.
“As someone with a background in research and development, I am incredibly proud to see our technological advancements make a real impact in the field,” Hedblom noted. “Our innovations are not just about improving productivity—they also contribute meaningfully to environmental sustainability.”
