July 20, 2021
Record orders received
Financially, the second quarter was strong with record orders received, high revenue growth and improved profitability. While we are committed to supporting our customers, the Covid-19 pandemic still impacts us all around the world. It is therefore worth repeating that our main priority is to keep employees, customers and partners safe.
In the quarter, the activity remained high and customers continued to invest, which contributed to a strong demand and an increased order intake for all businesses. The orders received increased 37% to a record high MSEK 11 070. This corresponds to 45% organic growth compared to Q2 2020; however, last year was significantly impacted by the Covid-19 pandemic. Equipment had the highest organic order growth of 76%, supported by a few large orders. The aftermarket also had a strong development, with organic growth of 26% for service and 42% for Tools & Attachments.
Sequentially, i.e. compared to the previous quarter, the orders received increased 2% organically.
We expect that the demand, both for equipment and aftermarket, will remain at a stable high level in the near term.
Increased revenues and profit
Group revenues increased 22% organically to MSEK 9 733 with strong growth for both equipment and aftermarket. We continue to experience supply-chain challenges, but the impact on revenues was limited in the quarter. The operating profit increased 54% to MSEK 2 182. The adjusted operating margin was 22.6% (18.7), supported by increased volumes. As a result of the growth, the working capital in¬creased, and the operating cash flow was MSEK 1 229.
It is encouraging to see that our customers are embracing battery-electric vehicles. This technology provides CO2 emissions-free operations, increased productivity and lower operating costs. We won several orders, including one for a greenfield project in South Africa. We also received the first orders for our diesel-to-battery retrofit solution.
Creating options for the future
We have a growth target of 8% per year over a cycle. To achieve this, we invest in innovation and in our aftermarket. In addition, we create options for the future through acquisitions. Since the start of Q2, we have announced four acquisitions, DandA Heavy Industries, Kinetic Logging Services, 3D-P and Mining Tag. These companies will strengthen our technology leadership and customer offering further, and we welcome our new colleagues to Epiroc.
Dare to think new
In June, we hosted a virtual leadership conference with more than 500 employees from 67 countries. We are on an exciting journey together. With inno-vative equipment and aftermarket solutions, we contin¬uously grow and develop our offering to support our customers’ success.
Guided by our vision, Dare to think new, we drive the productivity and sustainability transformation in our industry.
President and CEO
Please find the full report in the attached pdf. Additional financial documents are found on Epiroc’s Financial publications page.
This information is information that Epiroc AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 11.30 am CEST on July 20, 2021.
Epiroc is a vital part of a sustainable society and a global productivity partner for mining and infrastructure customers. 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 SEK 36 billion in 2020, and has 14 000 passionate employees supporting and collaborating with customers in about 150 countries. Learn more at www.epirocgroup.com.