• Orders received increased 12% to MSEK 16 182 (14 388). The organic increase was 5%.
• Revenues increased 11% to MSEK 17 251 (15 568). The organic increase was 4%.
• Operating profit amounted to MSEK 3 427 (3 349), including items affecting comparability of MSEK 22 (120)*. The operating margin was 19.9% (21.5).
• The adjusted operating profit was MSEK 3 405 (3 229), corresponding to an adjusted operating margin of 19.7% (20.7).
• Basic earnings per share were SEK 1.96 (1.87).
• Operating cash flow increased to MSEK 3 956 (2 435).
• Net debt/EBITDA ratio was 0.93 (0.49).
• The Board proposes a dividend of SEK 3.80 (3.80) per share to be paid in two equal installments.
CEO Comments
Strong mining
In the fourth quarter, the order intake increased to MSEK 16 182 (14 388), corresponding to an organic growth of 5%. The mining customer demand remained high, especially for our solutions within automation and digitalization. Our large orders amounted to MSEK 820 (680) and included two large orders for wireless connectivity solutions for mines. Robust and reliable wireless networks are crucial for supporting mining automation and digitalization, which are strategic growth areas
for us.
The demand from infrastructure customers was mixed, with solid demand from customers within tunneling and civil engineering, whereas the demand from construction customers remained weak.
In the near term, we expect that the underlying mining demand, both for equipment and aftermarket, will remain at a high level. Demand from construction customers is expected to remain weak.
Revenues and profitability
Revenues were record high and increased 11% to MSEK 17 251 (15 568), corresponding to an organic growth of 4%.
The operating profit, EBIT, was MSEK 3 427 (3 349), including items affecting comparability of MSEK 22 (120). The adjusted operating margin was 19.7% (20.7). Our actions to improve efficiency, including a significant reduction of our workforce, have been implemented according to plan and will continue during 2025. The weak demand in construction as well as dilution from acquisitions, mainly Stanley Infrastructure, had a significant negative impact for Tools & Attachments. The dilution from acquisitions on Group operating margin was -1.4 percentage points.
Strong cash flow
We had a strong cash conversion rate, 104%. The operating cash flow increased to nearly SEK 4 billion. Inventory reduction from high equipment invoicing contributed to the strong cash flow.
2024 in brief
In 2024, the orders received and revenues for Epiroc reached record highs, supported by acquisitions and a strong demand from mining customers with a particularly strong demand for automation solutions. The demand from construction customers, was weak, which impacted profitability negatively. The largest acquisition was Stanley Infrastructure, which provides specialty attachments. Despite the current weak market environment, we are confident that this acquisition positions us well in attractive infrastructure niches long term.
The Group adjusted operating margin was 19.8% (21.7) and we took several actions to improve profitability. To remain the technology leader within automation, digitalization and electrification, Epiroc continued to invest heavily in R&D, more than SEK 2 billion.
Innovation leadership
Innovation is one of our core values, and the 10% of our employees who are working in R&D made 2024 into a true testament to what we can achieve. Successful product launches within electrification included our Minetruck MT66 S eDrive ("hybrid"), which combines the cost level of a diesel truck with the productivity of an electric one.
At year end, we had an automated fleet of more than 3 450 driverless machines of mixed brands, up 21% compared to previous year. Another success was the order growth for our digital solutions, which grew 30%. Within electrification, we saw good results, where the use of our battery-electric machines in operations more than doubled. Our circular service offering also grew strongly, up 19%. It is clear that our equipment, our aftermarket support, and our automation, digitalization and electrification solutions, have created more value than ever for our customers in 2024. We are committed to do even more in the future.
To all colleagues, thank you for making innovation and operational improvement parts of your daily work, ensuring that Epiroc stays ahead and creates value for all stakeholders.
Helena Hedblom
President and CEO
Please find the full report in the attached pdf. Additional financial documents are found on Epiroc's Financial publications page. The report presentation that will be held starting at 14.00 CET can be followed via this link: https://epiroc.events.inderes.com/q4-report-2024/register
An Epiroc Pit Viper 271 blasthole drill rig
For more information please contact:
Karin Larsson, Vice President Investor Relations and Media
+46 10 755 0106
ir@epiroc.com
Alexander Apell, IR Controller
+46 72 083 9519
ir@epiroc.com
Ola Kinnander, Media Relations Manager
+46 70 347 2455
media@epiroc.com
This information is information that Epiroc AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons above, at 11.30 CET on January 30, 2025.
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 more than SEK 60 billion in 2023, and has around 19 000 passionate employees supporting and collaborating with customers in around 150 countries. Learn more at www.epirocgroup.com.
