Epiroc AB (SE:EPI.A)
:EPI.A
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Epiroc AB
(EPI.A)
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Rating:75Outperform
Price Target:
kr297.00
▲(16.52% Upside)
Action:Reiterated
Date:05/01/26
The score is driven mainly by strong underlying financial quality (solid margins/ROE and manageable leverage) and supportive technical momentum (price above all major moving averages). These positives are tempered by a less attractive valuation (P/E ~27 with modest yield) and near-term headwinds highlighted in the earnings call (tariffs/FX and tungsten cost pressure) that could weigh on margins.
Positive Factors
Recurring aftermarket & service revenue
A large and recurring aftermarket/service base (41% of revenues; aftermarket 63%) provides durable revenue and margin support over equipment lifecycles. This recurring stream smooths cyclicality from new-equipment sales, underpins stable cash flow, and increases customer lock-in via parts, service contracts and field support.
Negative Factors
Stalled revenue growth
Recent revenue stagnation (TTM -1.9%) weakens the top-line growth runway that previously drove margin expansion. If new-equipment orders or construction demand don't sustainably recover, service growth must compensate; slower revenue growth can pressure long-term investment capacity and EPS trajectory.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket & service revenue
A large and recurring aftermarket/service base (41% of revenues; aftermarket 63%) provides durable revenue and margin support over equipment lifecycles. This recurring stream smooths cyclicality from new-equipment sales, underpins stable cash flow, and increases customer lock-in via parts, service contracts and field support.
Read all positive factors
Epiroc AB (EPI.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr302.62B
Dividend Yield1.84%
Average Volume (3M)1.54M
Price to Earnings (P/E)32.9
Beta (1Y)1.38
Revenue Growth-6.44%
EPS Growth-4.74%
CountrySE
Employees19,042
SectorGeneral
Sector StrengthN/A
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)7.04
Shares Outstanding823,765,800
10 Day Avg. Volume1,503,394
30 Day Avg. Volume1,535,198
Financial Highlights & Ratios
PEG Ratio-16.43
Price to Book (P/B)6.01
Price to Sales (P/S)4.09
P/FCF Ratio28.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr276.63Price Target Upside8.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)8.24
Revenue Forecast (FY)kr65.48B
Epiroc AB Business Overview & Revenue Model
Company Description
Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in Sweden. It operates through Equipment & Service and Tools & Attachments segments. The Equipment & Service segment ...
How the Company Makes Money
Epiroc makes money primarily by selling specialized equipment and by generating recurring aftermarket and services revenue over the installed base of its machines and tools. A major revenue stream comes from the sale of capital equipment used in m...
Epiroc AB Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 17, 2026
Earnings Call Sentiment Positive
The call presents a solid operational and commercial performance with multiple strategic and technological achievements (automation milestones, largest-ever order, electrification wins, strong organic order growth and improved Tools & Attachment profitability). These positives are tempered by meaningful external headwinds — notably currency translation, tariffs and a looming tungsten cost impact — and remaining margin work particularly in Equipment & Service. Balance sheet and cash metrics are strong, and management has clear mitigation and efficiency plans. On balance, the highlights outweigh the lowlights.Positive Updates
Organic Order and Revenue Growth (FY2025)
Orders grew organically 7% to SEK 63 billion and revenues grew 2% to SEK 62 billion for the full year 2025 despite currency headwinds.
Negative Updates
Currency and Tariff Headwinds
Currency effects materially depressed reported revenue growth (Q4 group revenues down 7% to SEK 16.1 billion with an organic increase of 4% and currency drag of ~11%). Tariffs negatively impacted operating margin by ~0.5 percentage points in Q4 and are expected to remain a headwind into 2026 (though easing each quarter).
Read all updates
Q4-2025 Updates
Positive
Negative
Organic Order and Revenue Growth (FY2025)
Orders grew organically 7% to SEK 63 billion and revenues grew 2% to SEK 62 billion for the full year 2025 despite currency headwinds.
Read all positive updates
Company Guidance
Epiroc’s forward guidance stressed that mining demand is expected to remain high into 2026 while construction should recover somewhat from a low base, tariffs will continue to pressure margins but at somewhat lower levels each quarter (Q4 tariff hit was just below 0.5 ppt), and the effective tax rate is guided at 22–24%; management will keep investing in organic growth, pursue bolt‑on M&A, and maintain regular dividends (Board proposal SEK 3.80/share = SEK 4.6bn = 53% of net profit). Key targets and context include returning service growth toward its long‑term ~8% p.a. (service was 6% in orders and c.4% organic service revenue in Q4; service represents 41% of revenues and aftermarket 63%), capturing more customer share from an average fleet age of 8.6 years, and absorbing cost pressures such as tungsten (prices more than doubled in 2025; T&A faces an anticipated margin headwind of “a few tens of percentage points” in 2026). Capital priorities are clear: organic investment first, bolt‑ons close to the core, and shareholder distributions, supported by a strong balance sheet (net debt down to SEK 11bn from 14.8bn, net debt/EBITDA 0.73, cash SEK 9.6bn), solid cash generation (Q4 operating cash flow SEK 2.6bn, 12‑month cash conversion 90%) and ongoing efficiency programs that should lift margins (Tools & Attachment adjusted margin 12.3% in Q4; Equipment & Service adjusted margin 22.1%).Epiroc AB Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.81B | 62.00B | 63.60B | 60.34B | 49.69B | 39.65B |
| Gross Profit | 21.93B | 22.97B | 22.95B | 23.15B | 19.02B | 15.45B |
| EBITDA | 14.48B | 15.01B | 15.47B | 15.69B | 13.25B | 10.85B |
| Net Income | 8.51B | 8.60B | 8.73B | 9.43B | 8.40B | 7.06B |
Balance Sheet | ||||||
| Total Assets | 83.50B | 80.38B | 83.59B | 67.78B | 61.78B | 48.58B |
| Cash, Cash Equivalents and Short-Term Investments | 9.21B | 10.94B | 7.18B | 6.40B | 7.33B | 10.79B |
| Total Debt | 19.84B | 21.02B | 21.57B | 13.57B | 10.74B | 9.18B |
| Total Liabilities | 37.59B | 38.10B | 40.41B | 30.57B | 28.27B | 22.80B |
| Stockholders Equity | 45.90B | 42.26B | 42.76B | 36.82B | 33.02B | 25.73B |
Cash Flow | ||||||
| Free Cash Flow | 7.98B | 8.99B | 8.60B | 5.46B | 4.54B | 6.68B |
| Operating Cash Flow | 9.95B | 11.03B | 10.46B | 7.14B | 5.56B | 7.61B |
| Investing Cash Flow | -2.87B | -2.95B | -11.69B | -5.24B | -5.99B | -3.47B |
| Financing Cash Flow | -6.93B | -5.26B | 1.90B | -2.64B | -3.23B | -8.44B |
Epiroc AB Technical Analysis
Positive
254.90
Price Trends
246.18
Positive
243.22
Positive
221.69
Positive
Market Momentum
6.34
Positive
51.35
Neutral
38.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EPI.A, the sentiment is Positive. The current price of 254.9 is below the 20-day moving average (MA) of 259.92, above the 50-day MA of 246.18, and above the 200-day MA of 221.69, indicating a bullish trend. The MACD of 6.34 indicates Positive momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 38.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:EPI.A.
Epiroc AB Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | kr302.62B | 32.93 | ― | 1.84% | -6.44% | -4.74% | |
71 Outperform | kr821.07B | 28.20 | 26.43% | 2.03% | -5.93% | -10.65% | |
69 Neutral | kr636.06B | 18.67 | 19.41% | 6.34% | -9.52% | -28.83% | |
68 Neutral | kr821.07B | 31.77 | 24.69% | 1.82% | -5.93% | -10.65% | |
68 Neutral | kr636.06B | 18.62 | 19.41% | 2.74% | -9.52% | -28.83% | |
58 Neutral | kr726.62M | 4.77 | ― | ― | -5.62% | 94.52% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.