Strong mining demand bolsters Epiroc in Q3

Healthy mining industry business played a key part in Epiroc increasing its revenues and orders in Q3 2024.

The Sweden-headquartered global market manufacturer of drill rigs and hydraulic breakers for the quarrying, mining and construction industries posted an 8% rise in orders to SEK 15,520mn (SEK 14,360mn in Q3 2023). The demand from mining customers was particularly strong, with several large mining equipment orders won. In total, large orders were record-high at SEK 1,400mn (SEK 1,000mn), contributing to an organic order growth for equipment of 11%. For construction, as anticipated, demand remained weak, especially for attachments, where orders slowed further in the United States.

In the near term, Epiroc expects that the underlying mining demand, both for equipment and aftermarket, will remain at a high level, while demand from construction customers is expected to remain weak.

Epiroc third-quarter revenues increased 5% to SEK 15.7 billion, driven by organic growth in Equipment & Service and by acquisitions in Tools & Attachments. The company’s EBIT increased slightly to SEK 3,277mn (SEK 3,260mn) and included items affecting comparability of SEK 191mn (-12).

The adjusted operating margin, EBIT, was 19.7% (21.8). The lower margin compared to the previous year is mainly explained by mixed effects within Equipment & Service, where we have stronger revenue growth in equipment than in the traditional service business and dilution from the acquisition of Stanley Infrastructure. On a Group level, the dilution from acquisitions was -1.3 percentage points.

Sequentially, Eprioc’s efficiency measures have yielded results, and the organic contribution to the margin was positive. For comparable units, the workforce was reduced by 450 in the quarter and by 1,000 year-to-date. Several efficiency measures are ongoing, including consolidating sites in the United States.

Helena Hedblom, Epiroc president and CEO, said: “In September, in conjunction with the world’s largest mining exhibition, MINExpo, we hosted our Capital Markets Day. The main purpose of the event was to provide insight into how Epiroc is positioned for profitable, resilient growth in an ever-changing world. We provided updates on the progress of our financial and sustainability goals. Regarding safety, when it comes to our offering and our improvements, we have seen particularly good progress. We shared details of our market-leading position in electrification and automation, including more than 600 electric and 3,100 vehicles with our safety and mixed fleet automation solutions.

“At MINExpo in Las Vegas, with over 44,000 guests from 126 countries, we showcased many of our groundbreaking innovations. One innovation that attracted significant interest was the large-capacity Minetruck MT66 S eDrive, a hybrid with both an electric drivetrain and a powerful diesel engine. Epiroc aims to remain at the forefront of a rapidly changing industry by offering the most effective automation, electrification, and digitalisation solutions.

“During my visit to MINExpo, I had the pleasure of interacting with many customers, and it is clear that our approach to partnership is highly valued. I applaud the efforts of our passionate employees to provide our customers with solutions that make their operations safer, more productive, and more energy efficient while strengthening Epiroc for the future.”