Epiroc AB: A Global Leader in Mining and Infrastructure Solutions

Epiroc AB is a global productivity and sustainability partner for the mining and infrastructure industries, headquartered in Stockholm, Sweden. With a vision to “Dare to think new” and a mission to drive productivity and sustainability transformation, Epiroc develops innovative, safe equipment such as drill rigs, rock excavation tools, and construction equipment for both surface and underground applications. The company also provides world-class aftermarket services, including spare parts, maintenance, and solutions for automation, digitalization, and electrification.

Company Profile

Employing nearly 19,000 people and operating in approximately 150 countries, Epiroc reported revenues of SEK 63,604 million in 2024. Its core values—innovation, commitment, and collaboration—underpin its strategy to achieve outperformance through attractive niches, innovation, aftermarket focus, operational excellence, and a strong, sustainability-driven corporate culture.

Epiroc’s business model emphasizes a high proportion of recurring revenue through aftermarket services, leveraging a well-proven approach to create value for stakeholders. The company’s global presence, technological leadership, and focus on sustainability position it as a key player in transforming the mining and infrastructure sectors.

Business Segments

Epiroc operates across two primary business segments: Equipment and Aftermarket. These segments cater to mining and infrastructure customers, with a focus on enhancing productivity and sustainability. Below is a detailed breakdown of each segment, including their revenue contributions in 2024.

Equipment

The Equipment segment encompasses the design, manufacture, and sale of innovative and safe equipment critical to customers’ operations in mining and infrastructure. This includes drill rigs, rock excavation equipment, construction tools, and solutions for automation, digitalization, and electrification. The segment serves both underground and surface applications, with each accounting for roughly half of equipment revenues. In 2024, the Equipment segment contributed significantly to Epiroc’s order intake, with mining-related orders accounting for 78% and infrastructure-related orders making up 22%.

• Surface Mining Equipment: Epiroc provides a complete range of rigs for blasthole drilling, designed for open-pit mining of copper, gold, and iron ore. A notable product is the Minetruck MT66 S eDrive, launched in 2024, which combines an electric drivetrain with a diesel engine, offering up to 15% higher productivity and 7% lower fuel consumption without requiring infrastructure changes.
• Underground Mining Equipment: This includes advanced rock drilling tools, hydraulic attachments, and battery-electric equipment, which enhance safety and efficiency in underground operations.
• Revenue Contribution: While exact revenue splits for the Equipment segment alone are not specified, the overall revenue for Epiroc in 2024 was SEK 63,604 million, with Equipment forming a substantial portion alongside Aftermarket services.

Aftermarket

The Aftermarket segment focuses on providing spare parts, maintenance, consumables, and technical support to ensure the longevity and efficiency of Epiroc’s equipment. This segment is critical for maintaining customer operations and represents a high proportion of recurring business, contributing to financial stability.

• Services Offered: Includes spare parts supply, regular maintenance, and consumables for drilling and excavation equipment. The segment also supports automation and digitalization solutions, ensuring equipment operates at peak performance.
• Revenue Contribution: The Aftermarket segment is a significant revenue driver, though specific percentages are not isolated in the provided data. The high proportion of recurring business underscores its importance to Epiroc’s overall revenue of SEK 63,604 million in 2024.

Revenue Breakup (2024):

• Mining: 78% of orders received (approximately SEK 48,526 million, based on orders received of SEK 62,213 million).
• Infrastructure: 22% of orders received (approximately SEK 13,687 million).
• Note: Exact revenue splits between Equipment and Aftermarket are not explicitly detailed, but the mining and infrastructure order percentages provide insight into their relative contributions.

Company History

Epiroc’s history is rooted in a legacy of innovation and strategic expansion, tracing back to its origins as part of Atlas Copco before becoming an independent entity. Below is a comprehensive timeline of its development:

• 1905: The first rock drill was manufactured in Stockholm, Sweden, laying the foundation for Epiroc’s expertise in rock excavation technology.
• 1988: Expansion into rock drilling tools, broadening the company’s portfolio to include specialized equipment for mining and construction.
• 2002: Introduction of hydraulic generators, enhancing Epiroc’s offerings for excavation and material handling needs.
• 2004: Entry into surface drilling equipment, strengthening its position in open-pit mining applications.
• 2017: Significant advancements in automation, digitalization, and electrification, positioning Epiroc as a technology leader in these areas.
• 2018: Epiroc was officially listed as an independent company on the Nasdaq Stockholm stock exchange, separating from Atlas Copco to focus exclusively on mining and infrastructure solutions.
• 2017–2024: Epiroc continued to expand through organic growth and strategic acquisitions, focusing on automation, digitalization, and electrification. In 2024 alone, the company completed five acquisitions, adding approximately SEK 5,440 million in annual revenues and reinforcing its leadership in niche markets.

This history reflects Epiroc’s commitment to spotting trends, innovating, and expanding its offerings to meet the evolving needs of its customers, culminating in its status as a global leader in 2024.

Products and Services

Epiroc offers a comprehensive range of products and services designed to enhance productivity, safety, and sustainability in mining and infrastructure operations. Below is a detailed list:

Products

1. Drill Rigs:

• Surface Drill Rigs: Used for blasthole drilling in open-pit mining, suitable for copper, gold, and iron ore extraction.
• Underground Drill Rigs: Designed for precise and efficient drilling in confined spaces, enhancing safety and productivity.

1. Rock Excavation and Construction Equipment:

• Includes hydraulic attachments, rock breakers, and excavation tools for both surface and underground applications.

1. Battery-Electric Equipment:

• The Minetruck MT42 SG, launched in 2024, combines battery-electric technology with a trolley system, offering low energy consumption, minimal maintenance, and reduced ventilation needs.
• Other battery-electric solutions reduce emissions and improve efficiency in underground operations.

1. Automation and Digitalization Solutions:

• Hardware and software for autonomous operations, including 3,450 driverless machines in 2024, supporting mixed fleets.
• Digital tools for real-time monitoring and optimization of equipment performance.

1. Electrification Solutions:

• Hybrid and fully electric equipment, such as the Minetruck MT66 S eDrive, which boosts productivity by up to 15% and reduces fuel consumption by 7%.

Services

1. Aftermarket Support:

• Spare Parts: High-quality components to maintain equipment reliability.
• Maintenance Services: Regular and preventive maintenance to extend equipment lifespan.
• Consumables: Drilling consumables and tools tailored to specific applications.

1. Technical Support:

• On-site and remote support to ensure equipment uptime and efficiency.

1. Training and Consulting:

• Programs to train customer personnel on equipment operation and maintenance, enhancing safety and productivity.

1. Automation and Digitalization Services:

• Implementation of automation systems and digital platforms to optimize operations and reduce costs.

These products and services are designed to ensure customers can work safely, sustainably, and efficiently, aligning with Epiroc’s mission to drive industry transformation.

Brands

Epiroc operates primarily under its own brand, which is synonymous with innovation, reliability, and sustainability in the mining and infrastructure sectors. While the provided data does not list specific sub-brands or acquired brands, Epiroc’s acquisitions in 2024 (contributing SEK 5,440 million in revenues) likely include specialized brands integrated into its portfolio. Below is a detailed overview based on available information:

• Epiroc Brand: The core brand represents the full range of equipment, aftermarket services, and solutions for automation, digitalization, and electrification. It is recognized globally for its ground-breaking technology and commitment to sustainability.
• Acquired Entities: The five acquisitions in 2024 strengthened Epiroc’s offerings, potentially introducing niche brands in areas like automation or specialized equipment. However, specific brand names are not detailed in the provided data.
• Product-Specific Branding: Products like the Minetruck MT42 SG and Minetruck MT66 S eDrive are marketed under the Epiroc brand, emphasizing technological advancements and customer value.

Epiroc’s unified branding strategy ensures consistency and leverages its reputation as a technology leader across its global operations.

Geographical Presence

Epiroc operates in approximately 150 countries, with a strong global presence supported by a network of offices, manufacturing facilities, and service centers. The company’s revenues and employee distribution reflect its balanced geographic footprint. Below is a detailed breakdown with revenue percentages for 2024:

• Europe:
• Revenue Share: 25%
• Employee Share: 25%
• Details: A key market for both mining and infrastructure, with significant operations in Sweden (headquarters) and other European countries.
• North America:
• Revenue Share: 28%
• Employee Share: 14%
• Details: Strong demand for automation solutions and surface mining equipment, with a notable presence in the USA (e.g., MINExpo in Las Vegas).
• South America:
• Revenue Share: 12%
• Employee Share: 12%
• Details: Focus on mining, particularly copper and gold, with operations supporting large-scale open-pit projects.
• Africa/Middle East:
• Revenue Share: 15%
• Employee Share: 17%
• Details: Growing demand for underground mining equipment and aftermarket services in resource-rich regions.
• Asia/Australia:
• Revenue Share: 29%
• Employee Share: 12%
• Details: Significant market for both surface and underground equipment, with Australia being a hub for mining innovation.

Total Revenue (2024): SEK 63,604 million, distributed across these regions, reflecting Epiroc’s global reach and diversified market exposure.

Financial Performance

Epiroc’s financial performance in 2024 reflects strong growth in orders and revenues, despite challenges in the construction sector. Below are updated tables for the Consolidated Profit & Loss Statement, Balance Sheet, and Cash Flow Statement, with rows marked “Not Available” removed.

Consolidated Profit & Loss Statement (MSEK)

Item	2024	2023
Revenues	63,604	60,343
Cost of Sales	-40,658	-37,197
Gross Profit	22,946	23,146
Administrative Expenses	-4,531	-4,105
Marketing Expenses	-4,250	-3,959
Research and Development Expenses	-2,282	-1,930
Operating Profit (EBIT)	12,385	13,183
Profit for the Period	8,756	9,458
Basic Earnings Per Share (SEK)	7.23	7.82

Consolidated Balance Sheet (MSEK)

Item	2024	2023
Capital Employed (Period End)	65,398	51,437
Average Capital Employed	63,000	38,000

Consolidated Cash Flow Statement (MSEK)

Item	2024	2023
Operating Cash Flow	9,132	6,211
Cash Conversion Rate (%)	104	66

Key Financial Metrics:

• Orders Received: SEK 62,213 million (+6% from 2023)
• Operating Margin (EBIT): 19.5% (down from 21.8% in 2023)
• Adjusted Operating Margin: 19.8% (down from 21.7% in 2023)
• Return on Capital Employed: 20.6% (down from 27.0% in 2023)
• Dividend Per Share (Proposed): SEK 3.80

Subsidiaries, Wholly-Owned Subsidiaries, and Associates

The provided data does not explicitly list specific subsidiaries, wholly-owned subsidiaries, or associates, nor their ownership percentages. However, it mentions five acquisitions in 2024, contributing approximately SEK 5,440 million in annual revenues. These acquisitions likely include new subsidiaries or wholly-owned entities integrated into Epiroc’s operations. Without specific names or details, we can infer that these entities strengthen Epiroc’s portfolio in automation, digitalization, and specialized equipment. Further details would require additional information not available in the provided document.

Physical Properties

Epiroc’s global operations are supported by a network of offices, manufacturing plants, and service centers. Specific details from the document include:

• Headquarters: Sickla Industriväg 19, SE-13154 Nacka, Sweden (Postal: P.O. Box 4015, SE-13104 Nacka, Sweden).
• Manufacturing Facilities: While exact locations are not listed, Epiroc’s global presence in 150 countries implies multiple production sites, particularly in key regions like Europe, North America, and Asia/Australia.
• Service Centers: Support aftermarket services, including spare parts distribution and maintenance, across all regions (Europe: 25%, North America: 14%, South America: 12%, Africa/Middle East: 17%, Asia/Australia: 12% of employees).
• Research and Development Centers: Facilities dedicated to innovation in automation, digitalization, and electrification, though specific locations are not detailed.

The document does not provide a comprehensive list of all properties, but Epiroc’s extensive employee and revenue distribution suggests a robust infrastructure to support its global operations.

Founders Details

Epiroc’s origins trace back to its establishment as part of Atlas Copco in 1905, with the first rock drill manufactured in Stockholm, Sweden. The document does not identify specific individual founders, as Epiroc evolved from Atlas Copco’s mining and rock excavation division. The company’s formation is attributed to the collective efforts of engineers and innovators at Atlas Copco, with no single founder highlighted. Epiroc became an independent entity in 2018, focusing on mining and infrastructure solutions.

Board of Directors

The document references a “Corporate Governance Report” (page 56) and “Signatures of the Board of Directors” but does not provide a detailed list of board members. Without specific names or roles, we can infer that Epiroc’s board comprises industry experts and executives responsible for strategic oversight, as is standard for a publicly listed company. Further details would be available in the full governance report, not included here.

Shareholding Details

The document mentions “The Epiroc Share” (page 54) but lacks specific shareholding details. Key points include:

• Basic Number of Shares Outstanding (2024): 1,208 million
• Diluted Number of Shares Outstanding: Not specified
• Dividend Per Share (Proposed): SEK 3.80
• Stock Exchange: Nasdaq Stockholm (since 2018)

No specific shareholder names or ownership percentages are provided, but Epiroc’s status as a publicly traded company suggests a diverse shareholder base, including institutional and retail investors.

Parent Company Details

Epiroc has no parent company, as it became an independent entity following its spin-off from Atlas Copco in 2018. It operates as a standalone, publicly listed company headquartered in Stockholm, Sweden.

Investment Details

Epiroc’s investment activities in 2024 focused on acquisitions and research and development (R&D):

• Acquisitions: Five acquisitions were completed, adding approximately SEK 5,440 million in annual revenues. These investments strengthened Epiroc’s position in automation, digitalization, and niche equipment markets.
• R&D Investments: Epiroc invested heavily in innovation, with R&D expenses reaching SEK 2,282 million in 2024 (3.6% of revenues), up from SEK 1,930 million in 2023. This supported the development of products like the Minetruckett MT66 S eDrive and advancements in automation (e.g., 3,450 driverless machines).
• Passive Investments: No specific passive investments (e.g., stakes in unrelated companies) are mentioned in the document.

Future Investment Plans

Epiroc’s future investment plans align with its strategy to remain a technology leader and accelerate the productivity and sustainability transformation in its industry. Key areas include:

• Automation and Digitalization: Continued investment in autonomous systems and digital tools to enhance operational efficiency and safety, building on the 3,450 driverless machines deployed in 2024.
• Electrification: Expansion of battery-electric and hybrid equipment offerings, such as the Minetruck MT42 SG and MT66 S eDrive, to reduce emissions and meet sustainability goals.
• Acquisitions: Further strategic acquisitions to enter attractive niches and bolster technological capabilities, following the 2024 model of adding SEK 5,440 million in revenues.
• R&D: Sustained high investment in R&D (likely exceeding 3.6% of revenues) to drive innovation in equipment and aftermarket solutions.
• Sustainability: Investments to reduce CO2e emissions from operations and sold products, building on 2024 progress (e.g., TRIFR reduced to 4.3 from 5.1).

While specific financial commitments or timelines are not detailed, Epiroc’s focus on innovation, sustainability, and market expansion will guide its future investments.