Epiroc AB (publ)

Strong demand (mining-led) with healthy mix; timing effects explain revenue lag - Orders: +12% organically to SEK 17.5bn (reported +15%). Mining is the clear driver; infrastructure stable. - Broad mining strength: exploration + underground equipment + digital (automation & safety); organic service growth +13%. - Large orders: ~SEK 790m including SEK 610m underground mine order in Botswana (their 2nd largest ever). - Surprise/important: management repeatedly emphasized inventory/build and lead-time/mix effects as the reason revenues are growing slower than orders (equipment revenue conversion not “fully caught up” yet), not supply constraints.

Profitability improved meaningfully despite revenue not fully tracking orders - Revenue: SEK 16.8bn, +7% organic (reported +10%). - Adjusted operating margin: 20.4%, up from 19.0% last year (~+1.5pp organic EBIT contribution to margin). - Adjusted EBIT: SEK 3.4bn, +18% YoY. - Key negative/constraint: Operating cash flow down (see cash bullet)—working capital/inventory and taxes are the main pressure.

Segment performance: Equipment & Service strong; Tools & Attachments margin improvement - Equipment & Service: orders +15% organic / +19% total; revenues +8% organic; adjusted margin 23.8% (up from 21.9%). Flow-through >50% (management called it exceptionally strong). - Tools & Attachments: orders +4% organic to SEK 3.9bn; revenues +6% organic to SEK 4.0bn. Adjusted margin 13.2% (up from 11.6%), best since start of 2024. - Opportunity: service includes midlife rebuilds + digital automation/safety; installed-base growth supports recurring revenues over equipment life cycle.