Atlas Copco AB

Very strong Q3 growth (orders + revenues) - Orders received: SEK 52.3bn, record; +25% organic growth (+3% structural from acquisitions; some FX help in total). - Revenues: SEK 47.9bn, +11% organic. - Management highlighted strong activity level and broad-based growth across divisions and geographies; 3 of the 4 business areas delivered double-digit organic growth.

Vacuum Technique is the standout driver (and capacity ramp continues) - Vacuum Technique: +82% organic order growth and 28% organic revenue growth (also described as “outstanding”). - Profitability: VT operating margin ~22.2%; management noted margin was helped by volume/scale but still affected by ramp-up costs and some currency effects. - Surprising/important: margin “drop-through” is currently ~33% and management cautioned it should not be expected to immediately revert to historical peaks—capacity ramp-up is still ongoing and pricing/competition dynamics remain.

Profitability improved sequentially; margin pressured by FX + supply chain + mix - Group operating profit: SEK 9.95bn (close to SEK 10bn); reported profit for the period: SEK 7.7bn (vs SEK 6.7bn YoY). - Operating margin: 20.8%, with items affecting comparability (mainly restructuring in Industrial Technique due to lower activity in German product companies). - Key negatives/challenges cited: - Currency headwinds (notably Korean won strengthening drove negative exchange effects). - Supply chain cost pressure (commodities/electronics availability and inflationary inputs), especially highlighted for Compressor Technique. - Mix/geography effects (not necessarily “bad pricing wars,” but margin depends on product/category and market mix).