Investment case part 5 -
We have a well-proven business model
We operate a focused, decentralized business model that adapts quickly to changing market conditions. Our strength lies in a strong innovation focus, a high share of direct sales, a resilient aftermarket, and a flexible manufacturing philosophy. Combined with relentless pursuit of operational excellence, these capabilities position Epiroc to deliver profitable growth.
Focus and decentralization
Our decentralized organization, a legacy since 1976, enables fast decision‑making close to the customer. We operate through two Business Areas, each overseeing several global divisions. Cross‑divisional councils in R&D, sourcing, and production ensure collaboration, economies of scale, and efficient processes.
High degree of direct sales
We generate sales in around 150 countries, primarily through direct sales and service, which accounted for 80% (84) of revenues in 2025. This model strengthens customer relationships and ensures deep application knowledge. In certain cases, mainly within attachments, we complement direct sales with distributors to expand reach and penetrate new markets efficiently.
AI - accelerating operational excellence
We apply AI across the value chain to boost efficiency, from product recommendations and digital passports to automated inventory. Divisions drive their own AI work, supported by shared standards from the AI & Data Hub. We continue to strengthen AI skills through ongoing training, EU AI Act e‑learning, and regular knowledge‑sharing.
Flexible manufacturing
Our asset‑light manufacturing model, characterized by low capital needs and a high share of purchased components, allows us to scale quickly with changing demand. About 75% of product cost comes from externally sourced components, with 25% from in‑house core parts and assembly. Through design modularization, we speed up assembly, simplify upgrades, and streamline service and maintenance.
Leveraging innovation
Innovation is central to Epiroc’s success. We develop solutions that address customer challenges and advance automation, electrification, and digitalization. Collaboration across purchasing, service, and R&D ensures we deliver products that combine performance, safety, and sustainability.
See chapter "We accelerate the productivity and sustainability in our industry".
Strong aftermarket business
Epiroc has a broad aftermarket offering that includes service, tools, and specialty attachments. In total, the aftermarket represents 66% (66) of revenues.
See chapter "We have a high proportion of recurring business"
In 2025
We took action to strengthen resilience, including supply chain diversification, regional sourcing, and footprint optimization to mitigate geopolitical risks. We also consolidated selected operations to improve efficiency and scalability.