Investment case part 2 -
We focus on attractive niches with structural growth

Our customers operate in carefully selected niches within mining and infrastructure, serving a vital purpose: they help build communities. Access to metals and minerals is essential for a sustainable society. We ensure our customers can work in the safest, most efficient, and most sustainable way,
today and for generations to come.

Performance-critical solutions

Epiroc provides equipment, aftermarket services, and integrated digital solutions for demanding applications, primarily in hard rock formations. Our products are often performance-critical to our customers’ operations. We have a large number of customers, ranging from small local players to global companies.

Customers' costs for our solutions usually correspond to only a small portion of their full operating costs, but should the equipment not perform, the customer is likely to lose revenues and profits. Customers rely on us because of our deep industry and application knowledge, strong local service presence, and high availability of spare parts and components.

The greatest challenges for our customers are to increase the productivity and utilization rate of the equipment while reducing operating costs. In addition, customers place great emphasis on improving both safety and environmental performance. We continuously widen our offerings to help our customers address these challenges. We often collaborate closely with customers to develop new technologies and scale them globally once proven successful. 

Mining

79% of our orders received derive from mining customers. They are often large companies, operating several mines, both on surface and underground, but also smaller mining companies and mining contractors. 

65% of our mining orders comes from customers extracting copper and gold. In 2025, the prices of these minerals experienced continued strong development, which supported high levels of activity and good demand. Looking ahead, demand for copper, gold, and several other minerals relevant to Epiroc is expected to increase, which will drive demand for our advanced mining equipment and aftermarket solutions.

As our equipment is often used in demanding environments, regular maintenance and replacement of spare parts is necessary to ensure productivity. Customers' demand for aftermarket services is usually relatively stable over the business cycle as maintaining production is prioritized even in challenging times.

Chart: Mining exposure (orders received)

Infrastructure

Our infrastructure customers represent 21% (22) of orders and operate both underground and above ground. Underground, Epiroc’s rock drilling equipment plays a vital role in tunneling for roads, railways, and hydroelectric power plants. For surface applications, we provide rock drilling solutions for infrastructure projects and quarries, as well as specialty attachments for construction and recycling.

We serve a broad customer base, from global players to small local contractors. The main markets are concentrated in the northern hemisphere, with the USA, Western Europe, China, and India as the largest. In 2024, Epiroc strengthened its position through the acquisition of Stanley Infrastructure in the USA. Due to our geographical footprint, demand and orders are typically stronger in the first half of the year. 

Long-term growth within this customer segment is supported by global population growth and urbanization. While the infrastructure market is expected to grow by 4–5% annually over the long term, global conditions were weak in 2024 and 2025. Towards the end of the year 2025, we noted that the destocking among distributors selling our attachments had come to an end, which is promising as we enter 2026. 

Chart: Infrastructure exposure, management's estimate

Strong customer relationships

We meet our customers primarily through direct sales and local service, which contributes to strong customer relationships. Approximately 80% (84) of our revenues in 2025 derived from direct sales, reflecting the importance of close collaborations. Our customer base includes some of the world’s leading mining and infrastructure companies, such as Anglo American, Barrick Gold Corporation, BHP, Freeport-McMoRan, Glencore, Kamoa Copper, Newmont Mining, Rio Tinto, Vale, and Vedanta.

Our ten largest customers accounted for 18% (20) of Epiroc’s revenues in 2025. All are mining customers, but none is dominant in size, reducing dependency on any single customer. At the same time, we serve thousands of smaller customers worldwide, which diversifies our revenue streams but also requires continuous focus on service quality and operational excellence to manage complexity and mitigate risk.

Strong position in a competitive environment

We have established technology leadership in the industry. Our performance-critical products require a strong aftermarket network, which makes entry barriers high. A main competitor within equipment is Sandvik, who we meet in rock drilling, loading, and hauling in hard-rock applications. Other competitors include Caterpillar in underground loading and haulage and open-pit mining equipment, Furukawa in surface drilling equipment and hydraulic attachments, and Komatsu in underground and open-pit mining equipment and hydraulic attachments.

We protect our market share through a global presence, working closely with customers in every region. This geographic reach, combined with strong local service and partnerships, ensures resilience and customer loyalty. In markets with intense competition, we strengthen our position through deep collaboration and by leveraging trusted local brands, which reinforces our proximity and credibility with customers.

Within digitalization, automation, and electrification, we compete with several companies globally and locally, depending on technology. In our range of specialty attachments, we have a wide range of smaller local and regional competitors.

Structural growth

For the foreseeable future, we expect structural growth in the niches where Epiroc is present. Global megatrends, such as population growth, a rising middle class, and rapid urbanization, are fueling demand for metals and infrastructure investments. By 2050, nearly 70% of the world’s population will live in cities, requiring expansion of roads, railways, tunnels, and utilities.

In mining, the energy transition is the most powerful structural driver. Copper is essential for electric vehicles, renewable energy systems, and grid expansion.

The demand for our specialty attachments is driven by deconstruction and recycling (urban mining), where metals such as copper, steel, and aluminum are recovered when buildings and infrastructure are dismantled. Urban mining is projected to grow by 4-5% annually through 2030.

Challenges for customers

Our customers face significant operational challenges that require advanced solutions to maintain or increase productivity while meeting sustainability goals. These challenges represent growth opportunities for Epiroc.  

Challenge 1 - low utilization rate

Equipment utilization in mining and infrastructure is often below 50%. Low utilization drives higher costs and lower productivity. Through groundbreaking equipment, automation, fleet management, connectivity, and data-driven services, we help customers optimize operations by increasing utilization rates, decreasing costs and improving productivity. Our electric vehicles not only improve productivity compared to diesel alternatives but also cut emissions and ventilation costs thereby delivering both economic and environmental benefits.

Challenge 2 - declining ore grades

Global ore grades have fallen for decades. For copper, the average grade has dropped from 1.6% in 1990 to below 0.6% today, forcing miners to process more rock for the same output. We provide high-performance equipment that offsets productivity losses and digital solutions that optimize the entire mine flow, from exploration to haulage. In addition, we provide exploration equipment and solutions that help mining companies find new assets, as well as excavate existing assets in a more productive way. Our technology enables customers to mine deeper and smarter.

Challenge 3 - shift to underground mining

The share of underground mining is rising, especially for copper. Today, about 25% of global copper mining is conducted underground, and this is expected to reach 30% by 2030. Mines are also getting deeper, on average 30 meters per year, increasing complexity and safety risks. Epiroc has a strong global position within underground mining equipment and in combination with our automation solutions, collision avoidance systems, and electric machines, we benefit from the underground trend, as our solutions improve safety, reduce ventilation costs, and enable efficient operations.

Challenge 4 - costs and space limitations

Urban construction and deconstruction projects are becoming increasingly complex. Limited space, strict noise and emission regulations, and the need to minimize disruption to surrounding communities all put pressure on contractors. At the same time, they must keep workers safe, reduce emissions, and navigate economic fluctuations and market uncertainty. These constraints are reshaping the industry, with a clear trend toward fewer and smaller excavators and versatile specialty attachments.

Tightening noise and emission restrictions make traditional diesel infrastructure drilling equipment less viable, while battery-powered machines enable zero-emission performance and dramatically lower noise levels, allowing work in sensitive areas and extended hours. Tiltrotators, which were added to Epiroc's portfolio through the acquisition of ACB+ in 2024, further boost efficiency by reducing machine movements and improving safety, and their adoption is growing steadily.

Epiroc is uniquely positioned to turn these challenges into opportunities. Our innovative solutions, including attachments, tiltrotators, and battery-electric drill rigs, are designed for urban environments where space is limited and sustainability is non-negotiable.

Sustainability

Safety, reduced emissions, lower noise levels, reduced water consumption, human rights, and business ethics are important priorities for both our customers and Epiroc. Other strong trends are deconstruction and recycling (urban mining) as well as other circular solutions. 

Safety is increasingly recognized as a non-negotiable priority across mining and infrastructure, driven by stricter regulations and rising customer demands. Fatality and injury rates remain too high, creating strong demand for advanced safety technologies such as automation, digital monitoring, and collision avoidance systems. Global investments in safety solutions are accelerating, with markets for connected equipment and IoT-based (Internet of Things) monitoring projected to grow at double-digit rates. 

The priority towards increasingly sustainable operations aligns perfectly with Epiroc’s innovation strategy, where automation, electrification and digitalization not only enhance productivity but also remove personnel from hazardous environments.