Mixed demand in the fourth quarter

In the fourth quarter, the order intake increased to MSEK 14 388 (13 705), corresponding to an organic growth of 7%. Within mining, the activity levels were high, and we won several large orders. One of them is a multi-year order for digital solutions, which will strengthen safety and productivity at Codelco's El Teniente copper mine in Chile. The total order value is MSEK 250, whereof MSEK 50 was booked in the quarter. It is encouraging to see that the demand for our automation and digitalization offering is strong.

The demand from construction customers, on the other hand, was weak, impacting mainly the hydraulic attachments business negatively.

In the near term, we expect that the underlying mining demand, both for equipment and aftermarket, will remain at a high level. Demand from construction customers is expected to remain soft.

Strong revenues

We ended the year with strong invoicing and our revenues increased to MSEK 15 568 (13 936), corresponding to an organic growth of 8%. 

The operating profit increased 4% to MSEK 3 349 (3 235), including items affecting comparability of MSEK 120 (-67). 

The adjusted operating margin was 20.7% (23.7). The margin was positively impacted by currency, while we had a negative organic contribution. This is mainly explained by weaker development within Tools & Attachments and dilution from acquisitions. The strong growth of acquired companies impacted the margin negatively. In structure, the dilution from acquisitions was -0.7 percentage points.

Improved cash flow

The net working capital remained at a high level, but decreased sequentially, thanks to strong equipment invoicing. This in turn led to a strong cash flow, which increased by 60% to MSEK 2 435 (1 519).

Investing for long-term growth

We have a solid cash generating business, which enables us to seize opportunities and invest for profitable growth in the long term. We invest both in organic and inorganic growth. 

Our announced acquisition of STANLEY Infrastructure - with annual revenues of around SEK 4.7 billion – is an example of how we seize opportunities in challenging market environments to build our position for the future. Together, we will be a stronger supplier of hydraulic and infrastructure attachments, especially in the large and important US market, and can capitalize on a long-term global growth trend in deconstruction and recycling.

Major achievements in 2023

2023 was a year defined by major achievements .Overall, the order intake increased 11% to MSEK 59 332 (53 222), supported by a strong mining business, while demand from construction customers was weak. 

We achieved record-high revenues at MSEK 60 343 (49 694), corresponding to a growth rate of 21%
and a record-high operating profit at MSEK 13 183 (11 147).

Looking ahead

To conclude 2023, I would like to express my gratitude to everyone at Epiroc. Your skills and hard work have led to another successful year. Onwards, we will continue to deliver on our strategy to provide our customers with the best solutions to strengthen their safety and productivity, reduce their emissions, and ultimately improve their results. On that note, I want to say thank you to all customers and investors who have placed their trust in Epiroc. We will do our utmost to make 2024 an even better year. Finally, as always, stay safe!

Helena Hedblom

President and CEO