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Atlas Copco Maintains Payout and Incentives Despite 2025 Profit and Margin Decline

Story Highlights
  • Atlas Copco’s 2025 revenue and profit declined on FX and restructuring, despite modest organic order growth.
  • The Board proposes an unchanged ordinary dividend plus extra payout and continues long-term incentive plans, signaling confidence.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Atlas Copco Maintains Payout and Incentives Despite 2025 Profit and Margin Decline

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Atlas Copco AB ( ($SE:ATCO.A) ) has shared an announcement.

Atlas Copco reported a softer 2025 with orders received down 3% to SEK 165.8 billion and revenues down 5% to SEK 168.3 billion, largely hit by adverse currency effects, even as organic order intake grew 1% and acquisitions contributed 2%. Full-year operating profit fell 11% to SEK 34.1 billion with the margin slipping to 20.3%, pressured by negative FX, restructuring costs in the Vacuum Technique and Industrial Technique business areas, and a slight organic revenue decline, while operating cash flow before acquisitions and dividends fell to SEK 26.8 billion from SEK 31.0 billion. In the fourth quarter, orders grew organically by 4% but headline revenues dropped 7%, margins narrowed, and earnings per share declined, reflecting a tougher profit environment despite stable customer activity. Still, the Board signaled confidence by proposing an unchanged ordinary dividend of SEK 3.00 per share plus an extra SEK 2.00, lifting total capital distribution to SEK 24.4 billion, to be paid in two tranches, and it plans to maintain a performance-based long-term incentive program for management, indicating continued focus on shareholder returns and management alignment even amid margin pressure.

The most recent analyst rating on ($SE:ATCO.A) stock is a Hold with a SEK200.00 price target. To see the full list of analyst forecasts on Atlas Copco AB stock, see the SE:ATCO.A Stock Forecast page.

More about Atlas Copco AB

Atlas Copco Group is a Sweden-based industrial equipment manufacturer specializing in compressors, vacuum solutions, industrial tools, and assembly systems, serving a broad base of industrial customers worldwide. The group focuses on technologically advanced, productivity-enhancing equipment and services, with a strong emphasis on global aftermarket support and long-term customer relationships.

Average Trading Volume: 4,767,176

Technical Sentiment Signal: Strong Buy

Current Market Cap: SEK890B

For a thorough assessment of ATCO.A stock, go to TipRanks’ Stock Analysis page.

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