EPIPF - Epiroc AB (publ) (EPOKY) Q4 2024 Earnings Call Transcript
2025-01-30 12:46:08 ET
Epiroc AB (publ) (EPOKY)
Q4 2024 Earnings Conference Call
January 30, 2025 08:00 AM ET
Company Participants
Karin Larsson - Head-Investor Relations & Media
Helena Hedblom - President & Chief Executive Officer
Hakan Folin - Senior Vice President Controlling, Finance & Sustainability, Chief Financial Officer
Conference Call Participants
Gustaf Schwerin - Handelsbanken
Michael Harleaux - Morgan Stanley
Chitrita Sinha - JPMorgan
Edward Hussey - UBS
Klas Bergelind - Citi
Christian Hinderaker - Goldman Sachs
John Kim - Deutsche Bank
Benjamin Heelan - Bank of America
James Moore - Redburn Atlantic
Magnus Kruber - Nordea
Presentation
Karin Larsson
Hello, and a warm welcome to the Epiroc Q4 and Full Year Results Presentation. My name is Karin Larsson. I'm Head of IR Media here at Epiroc. And with me today to present the results I have, Helena Hedblom, CEO and Hakan Folin, CFO. As we have a lot to present today and you online you already know the procedure, we will start without further ado. So please Helena, the stage is yours.
Helena Hedblom
Thank you, Karin. So I will start with the highlights for 2024. So we achieved record highs for orders received and revenues with an overall good demand for our equipment and services. The growth was supported by acquisitions, but also the strong development within mining.
The demand for drilling equipment and tools for infrastructure projects was solid, but the demand for attachments used in construction was weak. The operating profit margin decreased impacted by mainly the weaker construction demand and dilution. Obviously, also the higher proportion of construction following the acquisition of Stanley Infrastructure is impacting and so does the strong growth in strategic growth areas such as service agreements and circular services with more labor contents as well as digital and automation solutions.
In total, we had an adjusted operating margin EBIT of 19.8% a level that we are determined to improve. During 2024, we executed efficiency actions according to plan and both Hakan and I will tell you more about this later on. As we enter 2025, Epiroc stands strong to grasp to the next horizon of profitable growth in strategic growth areas.
We have increased our portion of recurring and resilient revenue streams by having more service agreements and closer collaboration with our customers in areas such as automation, digitalization and electrification....
Epiroc AB (publ) (EPOKY) Q4 2024 Earnings Call Transcript