European Industrials: Mining equipment: Q2 disappointment but large copper FIDs moving closer

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European Industrials: Mining equipment: Q2 disappointment but large copper FIDs moving closer

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European Industrials

Mining equipment: Q2 disappointment but

large copper FIDs moving closer

Estimate Change

Q2 Mining orders disappointed but copper FIDs to help 20 July 2026

Q2 orders were lower than expected for both upstream names: Epiroc saw weaker-than- Equity

expected aftermarket growth (which we expect to partly improve) whereas Sandvik had Europe

tough OE comps & a smaller-than-foreseen tungsten boost (both to continue to weigh). Industrials

We nevertheless remain positive on the sub-sector outlook as we expect large copper Alexander Jones, CFA >>

project FIDs to drive an acceleration in OE orders from 2H26 (see: Copper project deep- Research Analyst

dive), pushing our 2027 group order ests 5/3% ahead of consensus for Epiroc/Sandvik. MLI+44 (UK)20 7995 5828

Epiroc is our top upstream pick given its high copper leverage & lower tungsten alexander.jones2@bofa.com

volatility. We also expect increased interest in downstream equipment providers where Tore Fangmann >>

Research Analyst

order comps are easier and valuations cheaper; we highlight Buy-rated FLSmidth & Weir. Merrill Lynch (DIFC)

+971 4 425 8210

Epiroc (Buy): OE orders remain strong but AM disappoints tore.fangmann@bofa.com

Epiroc’s Q2 org orders grew 13% but missed cons by 4% due to fewer midlife upgrades, BenjaminResearch AnalystHeelan >>

limited large orders (SEK720m, -44% q/q) and a tools pre-buy reversal in T&A. We expect Merrill Lynch (DIFC)

+44 20 7996 5723

this to be transitory as service orders should benefit from both structural drivers (fleet benjamin.heelan@bofa.com

age, machine complexity, digital) and self-help under new divisional mgmt; we forecast Uma Samlin >>