First Read: Epiroc AB "Q226 results: Weak print. Service and T&A growth..."

Research evidence excerpt

First Read: Epiroc AB "Q226 results: Weak print. Service and T&A growth..."

Global Research

17 July 2026ab

First Read

EquitiesEpiroc AB

Q226 results: Weak print. Service and T&A Sweden

growth worse than expected. Questions over Heavy Machinery

12-month rating Sell

E&S margin recovery.

12m price target SKr230.00

Q: How did the results compare vs expectations? Price (16 Jul 2026) SKr250.00

A: See table below. RIC: EPIRa.ST BBG: EPIA SS

Q: What were the most noteworthy areas in the results? Trading data and key metrics

Overall miss on orders and adj. EBIT (including margins). 52-wk range SKr278.20-189.00

Market cap. SKr302b/US$31.3b

Equipment orders were a couple of percentage points below the fairly lofty sell- Shares o/s 1,209m (ORD)

side expectations, but still grew a healthy +30%. Large orders added +10% to Free float 100%

growth, meaning Epiroc grew the underlying OE business +20%. Equipment

Avg. daily volume ('000) 1,566

revenues were surprisingly strong given book:bill only really picked up in Q126 and

Avg. daily value (m) SKr412.5

usual lead times are 9-12 months.

Common s/h equity (12/26E) SKr47.1b

Service growth was below expectations, despite having a relatively easy comp last P/BV (12/26E) 6.4x

year due to the DRC. This was disappointing, particularly when compared to Net debt to EBITDA (12/26E) 0.5x

Sandvik's +17% aftermarket growth in the Mining business.

EPS (UBS, diluted) (SEK)

Operating leverage in E&S was weaker than expected leading to a 60bp margin UBS Cons.

miss. There was another +1% organic contribution in the margin bridge, which is 12/26E 7.80 8.35

a positive development. However, we remain concerned that the strong organic 12/27E 9.20 9.98

margin development was a function of high levels of production in factories, 12/28E 10.59 11.08