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Annual and Sustainability Report 2025

Epiroc Group

Epiroc is a global productivity partner for mining and infrastructure customers and accelerates the transformation toward a sustainable society. With ground-breaking technology, Epiroc develops and provides innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. The company also offers world-class service and other aftermarket support as well as solutions for automation, digitalization and electrification. Epiroc is based in Stockholm, Sweden, had revenues of around SEK 62 billion in 2025, and has around 19 000 employees supporting and collaborating with customers in around 150 countries. 

Strong mining demand

In 2025, Epiroc delivered solid growth driven by strong mining activity. Customer demand remained high, resulting in several large orders for autonomous and electric equipment, as well as multi-year contracts for connectivity and digital platforms. The demand for service and tools also remained at a high level. On the construction side, the demand remained low, particularly for specialty attachments. Towards the end of the year, the destocking phase of attachments among distributors came to an end. 

Orders received

Orders received increased 1% to MSEK 62 974 (62 213), corresponding to an organic growth of 7%. Structure contributed with 2% whereas currency impacted negatively with -8%.  

Sales bridge Orders received Revenues
  MSEK, Δ,% MSEK, Δ,%
2024 62 213 63 604
Organic 7 2
Currency -8 -7
Structure/other 2 2
Total 1 -3
2025 62 974 61 998

Development by region, currency adjusted 

  • North America (29% of orders received): +9%
  • South America (13% of orders received): +5%
  • Europe (14% of orders received): +4%.
  • Africa/Middle East (16% of orders received): -4%
  • Asia/Australia (28% of orders received): -6%

Revenues

Revenues decreased 3% to MSEK 61 998 (63 604), corresponding to an organic growth of 2%. Structure impacted revenues positively by 2% while currency impacted negatively by -7%. The book-to-bill ratio was 102% (98).

Epiroc's goal is to achieve annual revenue growth of 8% over a business cycle. The average annual revenue growth rate was 10% in the period 2016-2025.

Chart: Orders received
Chart: Revenues and book-to-bill
Chart: Annual and average revenue growth
Chart: Revenues by business type

Profit

Operating profit, EBIT, decreased -4% to MSEK 11 925 (12 385). This includes items affecting comparability of MSEK -200 (-239), mainly related to mainly relating to costs for efficiency measures throughout the year and a positive income from an insurance settlement. The change in provision for the share-based long-term incentive programs was MSEK -20 (0). The items affecting comparability for the previous year included transaction and integration costs for acquisitions, positive revaluation effect of the shares held prior to the acquisition of ASI Mining, impairments of intangible assets related to acquisitions and earn-outs.

Profit bridge Operating profit  
  MSEK, Δ Margin, Δ, pp
2024 12 385 19.5
Organic 181 -0.4
Currency -685 0.4
Structure/other* 44 -0.3
Total -460 -0.3
2025 11 925 19.2

Epiroc’s goal is to have an industry-best operating margin, with strong resilience over the business cycle. The Group’s operating margin averaged 20.3% in 2016-2025.

*Includes operating profit/loss from acquisitions and divestments, one-time items affecting comparability (incl. change in provision for share-based long-term incentive programs).      

Operating profit, EBIT, for Equipment & Service decreased -8% to MSEK 10 458 (11 310), corresponding to a margin of 22.2% (23.1). The operating profit, EBIT, for Tools & Attachments increased 32% to MSEK 1 810 (1 373). corresponding to a margin of 12.2% (9.4). Common Group Functions reported an operating loss of MSEK -343 (-298). The Group's operating margin, EBIT, was 19.2% (19.5). The adjusted margin was 19.6% (19.8), negatively impacted by tariffs and mix, while supported by efficiency measures taken. The dilution from acquisitions was -0.3 (-1.0) percentage points.

Depreciation, amortization and impairment costs were MSEK -3 088 (-3 444). Earnings before depreciation and amortization, EBITDA, were MSEK 15 011 (15 827), corresponding to a margin of 24.2% (24.9). Financial income was MSEK 476 (470) and financial expenses were MSEK -1 165 (-1 416). Net financial items were MSEK -689 (-946), negatively impacted by interest expenses of MSEK -869 (-1 324). Interest net was MSEK -765 (-857). Profit before tax amounted to MSEK 11 236 (11 439), corresponding to a margin of 18.1% (18.0). Income tax expense amounted to MSEK -2 637 (-2 683), corresponding to an effective tax rate of 23.5% (23.5). Basic earnings per share were SEK 7.12 (7.23). 

Return

Return on capital employed was 18.9% (20.6) and the return on equity was 20.9% (22.2).

Epiroc’s goal is to improve capital efficiency and resilience. Investments and acquisitions should create value.

Chart: Operating profit and adjusted margin
Chart: Capital employed and return on capital employed
Chart: Operating margin (EBIT) average 2016-2025 vs. peers and industrial companies

Global industrials (Large cap):
ABB Ltd, Alfa Laval AB, Assa Abloy AB, Atlas Copco AB, Danaher Corporation, Deere & Company, Dover Corporation, Eaton Corporation plc, Emerson Electric Co., FLSmidth & Co. A/S, Fortive Corporation, Geberit AG, General Electric Company, Graco Inc., Hitachi Ltd, Honeywell International Inc., Kennametal Inc., Kone Oyj, Legrand SA, Mitsubishi Heavy Industries, Ltd., Nordson Corporation, Parker Hannifin Corporation, Rockwell Automation, Inc., Rolls Royce Holdings plc, Roper Technologies, Inc., Schindler Holding Ltd., Schneider Electric SE, Siemens AG, Siemens Energy AG, SKF AB, Smiths Group plc, 3M Company, Trelleborg AB, Ultratrex, Inc., Volvo AB, Wacker Neuson SE, Wärtsilä Oyj Abp, Xylem Inc.

Mining and construction equipment companies:
Caterpillar Inc., Furukawa Co., Ltd., Hyundai Everdigm Corp., Komatsu Ltd., Metso Corporation, Robit Oyj, Sandvik AB, The Weir Group plc, XCMG Construction Machinery Co., Ltd.

Data reported through March 9, 2026.

Actions for operational excellence in 2025

In 2025, Epiroc continued to strengthen its foundation for profitable growth through efficiency and agility across its global operations. Focus was mitigating the impact of tariffs, which required proactive measures to protect competitiveness. The company optimized logistics and distribution flows, leveraged its global manufacturing footprint, and explored alternative suppliers, including steel sourcing, to reduce cost pressures. Tariff impacts and pricing were discussed with customers, and joint mitigating actions were implemented where needed. 

Epiroc further focused on optimizing logistics and distribution flows, leveraging its global manufacturing footprint, and consolidating production sites to achieve economies of scale. Key actions included moving a tools manufacturing site from Canada to Mexico (expected to be finalized in 2027), investing in a new global equipment hub in Nashik, India, and consolidating customer centers. Epiroc also discontinued non-strategic product lines.

Efficiency measures were implemented and yielded positive results toward the end of the year, especially within Tools & Attachments. The introduction of two Business Areas; Equipment & Service and Tools & Attachments, further enhanced organizational agility, enabling faster decision-making and improved global reach.

Towards the end of the year,  Epiroc successfully completed the move of the Essen manufacturing site in Germany, marking a major milestone in our strategic consolidation of European hydraulic attachments operations. Announced in November 2023, this initiative progressed as planned, with Kalmar, Sweden, now firmly established as our central hub for breaker production. Enhanced automation and a strengthened team have positioned the site to deliver combined production capacity with greater efficiency and resilience. 

Balance sheet

MSEK 2025 % of total assets 2024 % of total assets
Intangible assets 21 923 27 25 075 30
- of which goodwill 14 531   16 699  
Rental equipment 1 300 2 1 543 2
Other property, plant and equipment 7 449 9 7 932 9
Other non-current assets 4 172 5 3 835 5
Inventories 18 100 22 19 191 23
Trade receivables 11 155 14 12 424 15
Other receivables 5 338 7 4 927 6
Financial assets 1 366 2 1 483 2
Cash and cash equivalents 9 574 12 7 179 8
Total assets 80 377 100 83 589 100
Total equity 42 272 53 43 180 52
Interest bearing liabilities 21 201 26 22 218 26
Non-interest bearing liabilities 16 904 21 18 191 22
Total equity and liabilities 80 377 100 83 589 100

Total assets decreased to MSEK 80 377 (83 589), mainly explained by FX. Epiroc ended the year with a cash and cash equivalents position of MSEK 9 574 (7 179) and a net debt position of MSEK 11 004 (14 778). Net debt/EBITDA was 0.73 (0.93). The net debt/ equity ratio was 26.0 (34.2).

Group financing consists of capital market borrowings of MSEK 11 350 and loan facilities of MSEK 5 296, with maturities in 2026–2034. As back-up, the Group has a MSEK 4 000 revolving credit facility (unutilized) and a MSEK 2 000 commercial paper program, whereof MSEK 482 was utilized at year-end. See note 22. 

Group equity including non-controlling interests was MSEK 42 272 (43 180), corresponding to 52.6% (51.7) of total assets. Equity per share was SEK 34.97 (35.75). Total comprehensive income for the year was MSEK 3 947 (10 345). 

Net working capital decreased -9% to MSEK 22 026 (24 322). For comparable units and currency-adjusted, net working capital increased 3%, due to increased inventories. Average net working capital was MSEK 22 883 (23 803). As a percentage of revenues last 12 months, the average net working capital was 36.9% (37.4). 

 

Cash flow

The operating cash flow decreased -15% to MSEK 7 726 (9 132) and the cash conversion ratio decreased to 90% (104). Net cash flow from operating activities was MSEK 10 675 (10 460). Net financial items paid were MSEK -1 (-447). Taxes paid were 
MSEK -2 824 (-3 039).

Cash flow from change in working capital was MSEK -1 078 (-574). Net investments in rental equipment were MSEK -353 (-283). Gross investments in property, plant and equipment were MSEK -1 120 (-890) and divestments were MSEK 18 (16), thus net investments in property, plant and equipment were MSEK -1 102 (-874). Investments in intangible assets, mainly related to capitalization of development expenditures and investments in IT systems, were MSEK -875 (-966).  

No (five) acquisitions and one (no) divestments were completed and the net cash flow effect was MSEK -87 (-9 658), see notes 3 and 15. Proceeds to/from other financial assets were MSEK -182 (-192), net.

Dividends paid to shareholders were MSEK -4 594 (-4 591) and dividends paid to non-controlling interests were MSEK -16 (-2). The acquisition of the remaining share of Radlink of MSEK -355, is reported as acquisition of non-controlling interest. Cash flow from sales and repurchases of own shares was MSEK 142 (290), net, all related to hedging or deliveries of shares for the long-term incentive programs described in note 25. Change in interest-bearing liabilities was MSEK -795 (6 202). 

Dividend

The Board of Directors proposes to the Annual General Meeting an ordinary dividend to shareholders of SEK 3.80 (3.80) per share, equal to MSEK 4 594 (4 594). The dividend is proposed to be paid in two equal installments with record dates May 7 and October 19, 2026.

Epiroc's goal is to provide long-term stable and rising dividends. The dividend should correspond to 50% of net profit over the cycle. The Board of Directors proposes a dividend of SEK 3.80 (3.80) per share, corresponding to 53% (53) of net profit.

Chart: Net working capital
Chart: Operating cash flow and cash conversion ratio
Chart: Capital structure
Chart: Dividend and payout ratio

Credit rating 

There were no changes in Epiroc's credit rating in 2025. In May 2023, S&P Global Ratings affirmed Epiroc’s BBB+ credit rating with a stable outlook. 

Epiroc’s goal is to have an efficient capital structure and the flexibility to make selective acquisitions. The goal is to maintain an investment grade rating. Epiroc has a BBB+ credit rating with a stable outlook.

 

Employees

The average number of employees increased 1% to 19 054 (18 778) and at year end 2025, the number of employees was 19 055 (18 874). External workforce amounted to 1 600 (1 495). For comparable units, the workforce increased by 286 (-1 135), mainly within service. Epiroc uses external workforce to handle temporary fluctuations in demand, mainly within manufacturing. 

The proportion of female employees increased to 20.5% (19.8) during the year, while the proportion of female managers was unchanged at 24.4% (24.4). We provide gender representation metrics as part of our reporting, yet our recruitment and development processes are uncompromisingly merit‑based, ensuring that roles are filled by the candidates best suited to deliver long‑term value.

 

Number of employees, average

  2025 % of total 2024 % of total
North America 4 187 22 3 987 21
South America 1 391 7 1 470 8
Europe 4 861 26 4 776 25
- Sweden 3 566 19 3 560 19
Africa/Middle East 2 758 14 2 806 15
Asia/Australia 5 857 31 5 739 31
Total 19 054 100 18 778 100

Employees by professional category, %

  2025 2024  
Service & supply chain 37 36  
Production 24 25  
Administration 19 18  
Marketing, sales & support 10 11  
Research & development 10 10  
Total 100 100  

 

IMG 0251 40

In 2025, Epiroc reaffirmed its commitment to employee engagement through the global My Voice survey, which saw strong participation and improved results compared to the previous year. The survey confirmed that employees are proud to work at Epiroc and believe in the company’s purpose of driving productivity and sustainability in mining and infrastructure. Notably, both the Engagement Index and Leadership Expectations showed a strong upward trend, reflecting a motivated and satisfied workforce. Listening to and acting on employee feedback remains central to building a stronger, more inclusive Epiroc for the future.

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