2Q26 Results. Headline order miss (large order phasing), and margin miss (mostly FX). We do not see this as thesis changing.

Research evidence excerpt

2Q26 Results. Headline order miss (large order phasing), and margin miss (mostly FX). We do not see this as thesis changing.

UpdateMEpiroc order consensus based on the end market guidance (mining to remain at a

high level) and a healthy industry large order pipeline.

(2) Epiroc's EBIT was -1% versus consensus for 2Q26, but with EBIT margins

which were -40bps below consensus. EBIT margins for Epiroc has been a sensitive

subject for investors given disappointments, and also a topic that kept us from

turning more positive for a number of years. We think the primary driver of the EBIT

margin mix is FX, which was more negative than we anticipated at -SEK 202m (vs

MSe at -130m). When we look specifically at the Equipment and Services

incremental margin, it was 32% in 2Q26. It is fair that they have not repeated the

66% incremental margin from 1Q26, but nonetheless, underlying EBIT margins (ex

FX) are increasing and the FX headwinds are continuing to fade. The Epiroc FX

impact has been unpredictable over the last 1-2 years, and this creates quarterly

volatility. We do not think the underlying margin performance changes our view that

there is a clear EBIT margin improvement story at Epiroc. Equally, this margin

expansion is made easier by Epiroc having one of the highest organic revenue

profiles in 2026-29 in our coverage.

Guidance - Unchanged. In the near term, we expect mining demand to remain high,

and demand from construction to increase somewhat.

Variance. Group orders of SEK 17.3bn came in +4% behind company consensus,

driven by a 3% order miss in E&S and 5% miss in T&A orders. Within E&S, both

equipment and service orders missed by 3%, and division organic orders decreased

9% sequentially. Sales of SEK 16.7bn at Group level beat expectations by 1%, with a