In This Article:
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Orders Received: SEK46.6 billion, second-best quarter ever.
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Revenue: Decline in organic growth by 2%.
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Operating Profit: Lower due to negative revenue volumes and mix.
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Cash Flow: Solid, despite lower revenues and profits.
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Acquisitions: Completed 10 acquisitions in the quarter.
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Compressor Technique Revenue: Increased 3% organically.
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Compressor Technique Profit Margin: 24.4%.
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Vacuum Technique Revenue: Down 5%.
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Industrial Technique Revenue: Down 9% organically.
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Profit Before Tax: SEK8.47 billion, 19.8% of revenues.
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Net Income: SEK6.6 billion.
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Earnings Per Share: SEK1.35.
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Return on Capital Employed: Close to 28%.
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Effective Tax Rate: 22.1% for the quarter.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Atlas Copco AB (ATLCY) reported a strong development in orders received, with the second-best quarter ever in terms of orders.
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The company completed 10 acquisitions in the quarter, contributing to its growth strategy.
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Positive cash flow was maintained despite lower revenues and profit levels, driven by a reduction in inventory levels.
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Compressor Technique showed a 3% organic growth, supported by significant development in gas and process compressors.
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Regions such as South America and Africa and the Middle East experienced strong growth, with 22% and 18% increases respectively.
Negative Points
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Overall, orders in equipment were flat, with industrial assembly and vision solutions down, particularly due to the automotive sector.
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Operating profit was lower, driven by negative revenue volumes and increased functional costs.
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Vacuum Technique experienced a 5% decline in revenues, necessitating further organizational adjustments.
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Power Technique saw a decline in orders, particularly from rental companies in the US and Europe, impacting overall results.
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The company faces uncertainties in the market, including tariff impacts and economic hesitations, affecting customer activity levels.
Q & A Highlights
Q: Could you share your view on the margin developments for the Vacuum Technique division for the rest of the year, considering the restructuring efforts? A: It's early to give specific indications on margin development. The current margin level, excluding restructuring costs and currency impact, is better than last quarter. Full benefits from restructuring activities are expected by 2026.
Q: How have customer segments across regions and industries evolved since the beginning of April? A: In industrial compressors, we saw negative development in North America and Europe, flat in Asia, but strong in gas and process business in North America and Asia. The semiconductor equipment was strong in Asia but weak in North America and Europe. Automotive showed positive development only in North America.