Investment case part 1 -
We create value for our stakeholders
We create value for our stakeholders by conducting responsible business while striving to achieve sustainable profitable growth. This is fundamental in our customer offering and helps us attract and retain motivated employees. Financially, we strive to provide superior value creation through a combination of strong operating performance, efficient use of capital, and stable and rising dividends to our shareholders. This will be achieved through our agile adaption to cyclical capital equipment demand, combined with a resilient and growing aftermarket business.
Stakeholders
Epiroc engages with a broad set of stakeholders who contribute to and are impacted by our operations. Our key stakeholder groups include customers, employees, investors, business partners, and society at large. We maintain an ongoing dialogue through customer interactions, workplace and management meetings, investor and analyst engagements, business partner evaluations, and collaboration with governmental bodies, communities, academia, and industry organizations. These interactions help us understand expectations, guide our strategic priorities, and ensure that we create long‑term value creation.
Customers
Investors
Employees
Business partners
Society at large
Financial goals
Revenue growth
Annual revenue growth of 8% over a business cycle.
- 10% CAGR since 2016.
- -3% revenue decline in 2025.
Profitability (EBIT)
Industry-best operating margin, with strong resilience over the cycle.
- Average EBIT margin of 20.3% since 2016.
- EBIT margin of 19.2% in 2025.
Capital efficiency (ROCE)
Improve capital efficiency and resilience. Investments and acquisitions shall create value.
- Average ROCE of 24.1% since 2016.
- ROCE in 2025 18.9%.
Capital structure
Have an efficient capital structure and have the flexibility to make selective acquisitions. The goal is to maintain an investment grade rating.
- Rating BBB+
Dividend
Provide long-term stable and rising dividends to our shareholders. The dividend should correspond to 50% of net profit over the cycle.
- Average 51% payout since 2018.
- SEK 3.80 dividend proposed, corresponding to 53% of net profit (payout).
Operating cash flow
Strong operating cash flow at MSEK 7 726 (9 132), however lower than previous year’s record level when cash released from working capital was higher.
- The cash conversion rate, (operating cash flow/net profit) since 2016 has been 94% in average.
- The cash conversion rate in 2025 was 90% (104).
2030 goals for people and planet
People highlights in 2025
- 99% of employees signed and confirmed compliance with our Code of Conduct.
- 100% managers signed and confirmed compliance with our Code of Conduct, up from 95% in base year 2019.
Safety
No work-related injuries.
- TRIFR 3.9, an improvement from 6.0 in base year 2019.
- The sick leave was unchanged at 2.1% vs. base year.
Inclusion and diversity
Balanced workforce and double the number of women in operational roles, based on merit and competence.
- 24.4% women managers, up from 19.3% in base year.
- Women in operational roles 15.7%, up from 11.2% in base year.
Compliance
Walk the talk.
- 100% Responsible Sales Assessment process implemented for customers in scope.
Planet highlights in 2025
- Epiroc transition plan approved.
- CO2e emission from machines sold -5% compared to last year.
- Largest electric order contract in Epiroc's history BSEK 2.2.
Operational CO2e reduction
- Halve CO2e emissions in operations. -44% since base year.
- 90% renewable energy in own operation. 55% vs. 38% in base year.
- Halve transport CO2e emission. -24% since base year.
- Require 50% reduction of CO2e emissions from relevant suppliers. +12% since base year.
Product CO2e reduction
- Halve CO2e emissions from machines sold. -6% since base year.
- Offer a full range of emissions-free products. 43% of fleet available in emissions-free option vs. 35% in base year.
