NewsEpiroc achieved significant performance growth in the fourth quarter of 2024, with new orders and revenue reaching historic highs. This growth is mainly due to strong demand from mining customers, particularly in the areas of automation and digital solutions.
According to the Q4 2024 interim report released by Epiroc, the company's new order volume increased by 12% to SEK 16.182 billion (RMB 10.973 billion), compared to SEK 14.388 billion (RMB 9.678 billion) in the same period last year, with an organic growth rate of 5%. The operating revenue increased by 11% year-on-year, reaching 17.251 billion Swedish kronor (11.609 billion yuan), compared to 15.568 billion Swedish kronor (10.442 billion yuan) in the same period last year, with an organic growth rate of 4%. The operating profit was 3.427 billion Swedish kronor (2.313 billion yuan), with an adjusted operating profit margin of 19.7%, compared to 3.349 billion Swedish kronor (2.256 billion yuan) in the same period last year, with an adjusted operating profit margin of 20.7%.
Helena Hedblom, President and CEO of Epiroc, said, "The continued growth in demand from mining customers, particularly the high focus on automation and digital solutions, has driven the company's strong performance. Our significant increase in large orders, including two major orders for wireless connectivity solutions for mines, demonstrates the company's successful layout in strategic growth areas
AnBai Tuo provides digital connectivity solutions for mining users, including telecommunication towers, cabins, and power systems
The report also pointed out that infrastructure customer demand has shown differentiation, with stable demand for tunnel engineering and civil engineering customers, but weak demand for construction customers. However, the company expects that the demand for equipment and after-sales market from mining customers will 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), an increase of nearly 62% compared to SEK 2.435 billion (RMB 1.641 billion) in the same period last year. The company has further consolidated its financial health by implementing measures to improve efficiency, including layoffs and optimizing operational processes
In addition, Epiroc completed the acquisition of professional accessory supplier Stanley Infrastructure in 2024, which is seen as an important strategic layout for the company in the infrastructure sector. Despite the dilution effect of -1.4 percentage points on operating profit margin caused by the acquisition, the company believes that this measure will lay the foundation for its advantageous position in the long-term market.
In the field of innovation, the R&D team of Epiroc has achieved significant results. The company has launched multiple electrified products, such as the Minetruck MT66 S eDrive (hybrid truck), which has a cost comparable to traditional diesel trucks but production efficiency comparable to electric trucks. As of the end of the year, the company's automation equipment fleet had over 3450 unmanned driving machines, a year-on-year increase of 21%. The number of orders for digital solutions increased by 30%, the usage of battery driven equipment doubled, and the circular service business grew by 19%.
Helena Hedblom emphasized, "Innovation is one of AnBai Tuo's core values. Our equipment, after-sales support, and automation, digitization, and electrification solutions have created unprecedented value for customers in 2024. We will continue to work hard in the future
The board of directors of Epiroc proposes to distribute a dividend of 3.80 Swedish kronor (2.56 RMB) per share, to be paid in two equal installments, demonstrating the company's emphasis on shareholders and confidence in its financial situation.
With the continuous growth of the mining market and the company's leading position in technological innovation, the performance of Epiroc in the fourth quarter of 2024 undoubtedly lays a solid foundation for its future development.
