Atlas Copco AB

Strong Q3 performance: record orders & revenues; margin improving sequentially - Orders received: SEK 52.3bn (record), driven by ~25% organic growth (currency + acquisitions also contributed). - Revenues: SEK 47.9bn with ~11% organic growth. - Operating profit: SEK 9.95bn (unadjusted, ~close to SEK 10bn); profit for the period: SEK 7.7bn (vs SEK 6.7bn a year ago). - Profitability trend: profit margins 20.8%; sequential improvement but comparability affected by restructuring and currency/supply chain pressures. - Cash flow: “solid” operating cash flow; working capital impact less negative than expected (working capital change around minus SEK 87m).

Order momentum broad-based; Vacuum outstanding - Organic growth by business area (orders/revenue mix as described): - Compressor Technique: +6% - Vacuum Technique: +82% (top driver; especially semiconductor demand; also industrial/scientific vacuum) - Industrial Technique: +12% - Power Technique: +13% - Service growth continues (strategy-aligned): service revenue +28% organic in Vacuum; also service +5% organic revenue growth within Compressor Technique. - Geographic strength: growth across all continents: - Asia +39%, North America +39%, Europe +8%, South America +4%, Africa/Middle East +21%.

Key profitability drivers & negatives (what hurt/influenced margins) - Restructuring / comparability items: - Main one in Q3: Industrial Technique restructuring tied to German operations due to low activity. - Underlying margins referenced as stronger than reported after these one-offs. - Currency & FX: - Negative contribution largely from operating exchange differences; notable detractor: Korean won strengthened in Q3. - Management expects Q4 FX may turn slightly positive (~SEK +0.5bn) “all things being equal.” - Supply chain / cost inflation pressure: - Particularly highlighted for Compressor Technique: pressure from higher costs of electronics/electronic components, aluminum castings, desiccants, etc., linked to a hot environment (data centers + commodity/equipment demand). - Important caveat: Vacuum margins still affected by ramp-up costs (even as volume scales).