Epiroc AB (3AD) AI Stock Analysis

Epiroc AB

(Frankfurt:3AD)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Recurring aftermarket strengthA majority-aftermarket revenue mix gives Epiroc recurring demand beyond new equipment cycles. Service, rebuilds and digital solutions tied to the installed base can support revenue resilience, customer retention and cash generation as machines remain in operation.

Negative Factors

Weak cash conversionLower operating cash flow and a 78% conversion rate show that reported earnings are currently translating less efficiently into cash. Inventory and working-capital needs can absorb funds, limiting near-term financial flexibility and raising execution pressure.

Epiroc AB (3AD) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 29.19B
Dividend Yield: 1.60%
Average Volume (3M): 25
Price to Earnings (P/E): 31.1
Beta (1Y): 2.36
Revenue Growth: 3.93%
EPS Growth: 10.81%
Country: Germany
Employees: 18,854
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Epiroc AB Business Overview & Revenue Model

Company Description

Epiroc AB, a publicly listed entity, stands as a prominent global provider of equipment and innovative solutions for both surface and underground operations. Its extensive presence spans regions including North and South America, Europe, Africa, the...

Epiroc AB Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Jan 25, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Epiroc reported double-digit organic order growth, solid revenue growth, improved margins in both business areas, strong mining demand, a broad project pipeline and progress on efficiency and manufacturing initiatives. The main challenges were lower operating cash flow and cash conversion due to inventory and working capital, slower conversion of equipment orders into revenue, low infrastructure demand, and specific weakness or uncertainty in nickel, Chilean copper output, Cobre Panama and Fortescue shipments. The highlights significantly outweighed the lowlights.

Positive Updates

Strong Group Orders and Mining Demand

Group orders increased 15% on a reported basis and 12% organically to SEK 17.5 billion, with mining clearly driving growth. Demand was strong across exploration, underground equipment, digital solutions and service.

Negative Updates

Operating Cash Flow Declined

Operating cash flow was SEK 1.4 billion, down from SEK 2.5 billion last year. Management said the lower cash flow primarily reflected higher working capital, especially inventory, as well as higher tax payments.

Company Guidance

Management maintained effective tax rate guidance at 22% to 24% and CapEx guidance at around 2% to 3%. Looking ahead, Epiroc expects mining demand to remain high and demand from infrastructure customers to remain stable; construction and infrastructure demand is still on a low level, is somewhat better than some quarters ago, and is expected to continue to be on the level we are at moving forward.

Epiroc AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:3AD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPAC	77Outperform	$2.08B	23.31	20.90%	0.10%	5.73%	0.90%
TEX	74Outperform	$6.31B	27.93	4.71%	1.21%	40.10%	-17.18%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ASTE	56Neutral	$904.21M	45.66	2.88%	1.32%	18.70%	-57.51%
MTW	56Neutral	$830.51M	41.13	2.92%	―	8.86%	-55.83%
CMCO	43Neutral	$432.63M	-1.36	-27.20%	1.87%	55.23%	-1626.88%

* Industrials Sector Average

Performance Comparison

DE:3AD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:3AD	Epiroc Ab Adr	22.20	4.36	24.47%
EPAC	Enerpac Tool Group Corp.	40.56	-0.49	-1.20%
ASTE	Astec Industries, Inc.	39.27	-7.04	-15.21%
CMCO	Columbus Mckinnon	14.97	-0.79	-5.01%
MTW	Manitowoc Company	23.03	12.82	125.56%
TEX	Terex Corporation	56.15	10.62	23.31%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Epiroc AB AI Stock Analysis