Epiroc(Epiroc) achieved significant performance growth in the fourth quarter of 2024, with both new order value and operating revenue reaching record highs. This growth was mainly driven by strong demand from mining customers, especially in the fields of automation and digital solutions.

Epiroc Pit Viper 271 DTH drill rig

According to the interim report for the fourth quarter of 2024 released by Epiroc, the company's new order value increased by 12% to SEK 16.182 billion (RMB 10.973 billion), compared with SEK 14.388 billion (RMB 9.678 billion) in the same period last year, with an organic growth rate of 5%. Operating revenue increased by 11% year on year to SEK 17.251 billion (RMB 11.609 billion), compared with SEK 15.568 billion (RMB 10.442 billion) in the same period last year, with an organic growth rate of 4%. Operating profit was SEK 3.427 billion (RMB 2.313 billion), with an adjusted operating margin of 19.7%, compared with SEK 3.349 billion (RMB 2.256 billion) in the same period last year, with an adjusted operating margin of 20.7%.

Helena Hedblom, President and CEO of Epiroc, said: "The continued growth in demand from mining customers, especially the high attention to automation and digital solutions, drove the company's strong performance. Our large orders increased significantly, including two major orders for wireless connectivity solutions for mines, which demonstrates the company's successful positioning in strategic growth areas."

Epiroc provides digital connectivity solutions for mining users, including telecom towers, cabins and power systems

The report also noted that demand from infrastructure customers was mixed, with demand from tunneling and civil engineering customers remaining stable, but demand from construction customers still relatively weak. However, the company expects demand from mining customers for equipment and the aftermarket to remain high in the short term.

In terms of cash flow, Epiroc performed well, with operating cash flow increasing to SEK 3.956 billion (RMB 2.663 billion), up nearly 62% from SEK 2.435 billion (RMB 1.641 billion) in the same period last year. Through efficiency measures, including layoffs and optimization of operational processes, the company further consolidated its financial health.

In addition, Epiroc completed the acquisition of specialty attachment supplier Stanley Infrastructure in 2024, which is regarded as an important strategic move by the company in the infrastructure segment. Although the acquisition had a dilutive effect of -1.4 percentage points on the operating margin, the company believes this move will lay the foundation for it to occupy a favorable position in the long-term market.

In the field of innovation, Epiroc's R&D team achieved remarkable results. The company launched a number of electrified products, such as the Minetruck MT66 S eDrive (hybridtruck), whose cost is comparable to that of traditional diesel trucks, but whose production efficiency is comparable to that of electric trucks. By the end of the year, the company's automated equipment fleet had more than 3,450 driverless machines, a year-on-year increase of 21%. Orders for digital solutions increased by 30%, the use of battery-driven equipment doubled, and the circular service business grew by 19%.

Minetruck MT66 S eDrive (hybrid truck)

Helena Hedblom emphasized: "Innovation is one of Epiroc's core values. Our equipment, aftermarket support, and automation, digitalization and electrification solutions created unprecedented value for customers in 2024. We will continue to work hard in the future."

Epiroc's board of directors proposed a dividend of SEK 3.80 (RMB 2.56) per share, paid in two equal installments, demonstrating the company's emphasis on shareholders and confidence in its financial condition.

With the continued growth of the mining market and the company's leading position in technological innovation, Epiroc's performance in the fourth quarter of 2024 undoubtedly laid a solid foundation for its future development.