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Epiroc: The Picks & Shovels of the Mining Revolution
I. Introduction & Episode Roadmap
In Western Australia's Pilbara region, 1,100 kilometers from Perth, a transformation is quietly reshaping what it means to extract ore from the earth. At Hancock Iron Ore's Roy Hill mine, 78 haul trucks traverse the red landscape without drivers—a fleet of autonomous giants from Caterpillar and Hitachi that have collectively traveled over 6 million kilometers and moved more than 250 million tonnes of material. The trucks have safely travelled around 6 million kilometers, equivalent to going around the world more than 150 times, delivering consistent results that redefine what is possible in surface mining.
The technology orchestrating this industrial ballet belongs not to the equipment manufacturers whose names adorn the trucks, but to a Swedish company with strong ties to one of Europe's most powerful industrial dynasties. Epiroc AB, a leading partner for the mining and infrastructure industries, has successfully converted – from manual to fully driverless – all 78 mining haul trucks at Hancock Iron Ore's Roy Hill mine. The conversions – utilizing Epiroc's LinkOA system – are a major milestone on the journey toward creating the world's largest fully agnostic autonomous mine.
Epiroc AB is a Swedish multinational engineering company headquartered in Stockholm, specializing in the development, manufacture, and sale of equipment, tools, and services for rock excavation, drilling, and construction primarily serving the mining, infrastructure, and natural resources industries. The company had revenues of around SEK 64 billion in 2024, and has almost 19,000 passionate employees supporting and collaborating with customers in around 150 countries.
The framing question for any investor examining Epiroc is both simple and profound: How did the mining equipment division of a 150-year-old Swedish industrial giant become one of the most exciting technology companies in global mining?
The answer lies at the intersection of several powerful forces: the Wallenberg empire's century-long commitment to patient capital, the strategic clarity that came from Epiroc's 2018 spin-off from Atlas Copco, and the company's aggressive positioning in automation and electrification—the mega-trends that will define mining's future.
This is a "picks and shovels" story in the truest sense. When prospectors descended on California in 1849, the surest fortunes were made not by those panning for gold, but by the merchants selling shovels and denim. Today, as the world scrambles for lithium, copper, and rare earth elements essential to the energy transition, Epiroc provides the modern equivalent—the drill rigs, loaders, autonomous systems, and electrification infrastructure that make extraction possible.
The world needs metals and minerals for the energy transition and we need cities that can cope with a growing population in a sustainable way. To succeed we need to speed up the shift towards a more sustainable mining and construction industry. Epiroc accelerates this transformation.
What makes this story compelling is the convergence of old and new. Through Investor AB and FAM AB, the Wallenberg family's most important holdings include ABB, AstraZeneca, Atlas Copco, Electrolux, Epiroc, EQT, Ericsson, Saab AB, SEB, and Stora Enso. Behind Epiroc stands the Wallenberg family—a dynasty that has shaped Swedish industry for over 160 years. And leading the company into its autonomous future is Helena Hedblom, who took over as CEO just two weeks before the pandemic began and has since executed roughly 30 acquisitions while pushing the company into technologies that didn't exist a decade ago.
II. The Wallenberg Dynasty & Atlas Copco Origins (1873–1940s)
Stockholm, February 21, 1873. Sweden's industrial revolution was gaining momentum, and railway construction promised fortunes for those who could supply the expanding network. On this date, a company called Atlas was born—named after the Greek Titan who carries the skies on his shoulders. In 1873 the company was founded as Atlas. Wallenberg, together with three partners, founded a company to make railroad equipment. They named it Atlas, after the Titan in Greek mythology who carries the skies on his shoulders. Engineer Eduard Fränckel was put in charge – and he made sure that Atlas lived up to its somewhat daunting name.
The founding consortium included Eduard Fränckel, the chief engineer for Swedish State Railways, who became the company's first managing director. The biggest shareholder in Atlas was André Oscar Wallenberg, the founder of Sweden's first commercial bank, Stockholms Enskilda Bank. Wallenberg had involved the bank in financing a number of railway construction projects and his interest in Atlas was a natural extension of this activity.
It was soon the largest engineering company in the country, with state-owned Swedish Rail as its key customer. For a few years, all looked promising. But then economic reality intervened.
However, a recession hit Sweden in the 1880s, bringing railroad construction to a halt and Atlas to its financial knees. Drastic measures were needed. Engineer Fränckel was succeeded by industrialist Oskar Lamm. New capital was injected from the Wallenberg family and the company changed its name to Nya Atlas (New Atlas).
This first rescue established a pattern that would repeat throughout Atlas's history: the Wallenberg family stepping in with capital and strategic direction when the company faced existential threats. Closely connected to the Wallenberg banking dynasty, Atlas Copco had to call on its financial support to weather several severe crises during its existence prior to World War II.
The Wallenbergs weren't merely passive investors. They actively shaped corporate strategy, drawing on their broader industrial network. The Wallenberg family had other business interests than just railroads. In the late 1890s, they struck a deal with German engineer Rudolf Diesel, who had just invented the diesel engine. It gave them manufacturing rights for Sweden and they formed the company Diesels Motorer. The company ended up not just producing diesel engines, but also improving their design. With Nya Atlas and AB Diesels Motorer sharing the same owner, and also collaborating at times, it was not strange that the companies merged in 1917 to become Atlas Diesel.
The merged entity, Atlas Diesel, moved into the Diesels Motorer production plant in Sickla, just outside Stockholm's city borders. This is where the Atlas Copco Group still has its headquarters, or Group Center as it's called.
To understand Epiroc, one must understand the Wallenberg ecosystem. Investor AB is a Swedish investment and holding company, often considered a de facto conglomerate. Serving as the investment arm of the prominent Swedish Wallenberg family, the family's companies are involved in a variety of industries, of which the primary industries are pharmaceuticals, telecommunications and industry.
In response to new legislation in 1916, the Wallenbergs set up Investor AB, transferring its vast industrial shareholdings to the new holding company. After the bank's holdings were transferred to Investor AB, the portfolio consisted mainly of shares in SEB and Atlas Diesel (Atlas Copco today). These companies remain in Investor's core investments portfolio today, 100 years later.
The family motto—"Esse, non Videri" (Latin for "To be, rather than to seem")—reflects the family's very low-key public profile, eschewing conspicuous displays of wealth. This philosophy translated into a distinctive management approach at Atlas: give engineers freedom to innovate, hold them accountable for results, and let the best ideas rise regardless of hierarchy.
A pivotal moment came in 1905, when the first rock drill was produced. The Cyklop and Rex light rock drills were hand-powered, light, and hard-hitting, making drilling much more efficient for customers. This marked Atlas's entry into the rock drilling business that would ultimately become Epiroc's core.
The transformation from railroad equipment to compressed air technology accelerated after World War II. The "Swedish method" influenced the firm's pneumatic program, consisting of lightweight rock drills and drill bits with carbide tips. In 1948, the company terminated its diesel manufacturing and the name "Atlas Diesel" was no longer pertinent.
The name Atlas Copco became official in 1956 and was inspired by the Belgian subsidiary Compagnie Pneumatique Commerciale (Trading Pneumatic Company). The acquisition of the Belgian compressor company Arpic Engineering in 1956 was the firm's first major international acquisition.
For investors, the Wallenberg connection represents more than historical interest. Retaining earnings only makes sense for quality companies—those capable of reinvesting capital at strong returns, above their cost of capital. With both Atlas Copco and Epiroc consistently delivering returns on capital employed (ROCE) above 25%, they are prime examples of this.
The Wallenberg model emphasizes decades-long ownership horizons. It is hard to overestimate the importance of the Wallenberg family for Atlas Copco Group's development. More than once in its 150 years, the company has had to be reconstructed with the help of the family. For many years, the chairperson has also been a Wallenberg. Today's Wallenbergs still see Atlas Copco as one of their most valuable – and dearest – holdings.
III. Building the Rock Drilling Empire (1940s–2000s)
The post-war decades transformed Atlas from a diversified engineering company into a focused industrial powerhouse. The catalyst was a revolutionary approach to rock drilling that would be known simply as the "Swedish Method."
The ground-breaking Swedish Method was introduced. "One man – one machine". Key innovations in the solution were the combination of a "pusher leg" and hard metal drill bits. This sounds technical, but its impact was profound: it dramatically increased drilling productivity while reducing the physical demands on workers. Where rock drilling had previously required teams of men wrestling with heavy equipment, a single operator could now achieve more with less.
No figure shaped Atlas Copco's culture more profoundly than Peter Wallenberg Sr., who joined the company in an unconventional way. Peter had taken an unconventional career path, starting out on the floor of family-owned Atlas Copco in Africa, and working his way up. Peter and his father never quite got along, and he figured he'd have to be the architect of his own future. But when his brother Marc – the designated successor – passed, Peter became increasingly involved in the family business. When the father also passed in 1982, Peter became the man in charge, many doubting him at first. But he would prove everyone wrong.
Dr. Peter Wallenberg began his life-long career at Atlas Copco, lasting 62 years. By giving employees a large degree of personal responsibility as well as accountability, he established a customer-oriented and decentralized culture.
Peter Wallenberg Sr. worked for 21 years in the Atlas Copco Group and then continued as chair of the board for 22 years, until 1996. He remained on the board as honorary chairman until he passed away in 2015.
The decentralized culture Wallenberg established wasn't just a management philosophy—it became a competitive weapon. Engineers close to customers could respond to their needs without waiting for headquarters approval. Ideas flowed up, decisions flowed down, and accountability remained crystal clear.
Strategic acquisitions during this period built the foundation for Epiroc's current market position. AB Växlar & Signaler in Örebro, Sweden, (AVOS) was acquired. Today, this is Epiroc's largest production site with almost 3,000 employees.
Through the acquisition of Secoroc in Fagersta, Sweden, Atlas Copco became the world's largest supplier of complete rock drilling equipment.
The 1988 expansion into rock drilling tools, the 2002 move into hydraulic attachments, and the 2004 acquisition of surface drilling equipment capabilities all followed the same logic: build a comprehensive offering that could serve mining customers throughout the entire lifecycle of their operations. Each acquisition strengthened the aftermarket opportunity—the ongoing revenue from parts, service, and consumables that would prove far more valuable than initial equipment sales.
Marianne Hamilton became the first woman in Group Management and successfully transformed the internal job market. It enforced a decentralized organization with high job mobility. This cultural innovation would prove essential decades later when Helena Hedblom rose through the organization to become CEO.
By the early 2000s, Atlas Copco's mining equipment division had become a global leader, but it operated within a larger group increasingly focused on industrial compressors and vacuum technology. The seeds of strategic tension—and eventual separation—were being planted.
IV. Key Inflection Point #1: The Ingersoll-Rand Acquisition (2004)
Every great industrial company has moments when acquisitions transform its competitive position. For what would become Epiroc, that moment arrived in 2004 with the purchase of Ingersoll-Rand Drilling Solutions.
In 2004, the company acquired Ingersoll-Rand Drilling Solutions, a U.S.-based manufacturer and distributor of drilling equipment, for $225 million, which strengthened its position in surface mining and construction applications by integrating complementary technologies and market share.
Ingersoll-Rand Drilling Solutions, a manufacturer of large blasthole drilling rigs in the USA, was acquired. The strategic acquisition makes Atlas Copco a leading supplier in surface drilling.
Before this acquisition, Atlas Copco's rock drilling expertise concentrated heavily on underground operations—the confined spaces where Swedish mining heritage provided unique advantages. Ingersoll-Rand brought strength in surface mining applications, particularly the massive blasthole drilling rigs used in open-pit operations.
The deal created a complete player—one that could serve customers whether they were tunneling beneath cities, extracting iron ore from open pits, or operating the world's deepest gold mines. This comprehensive capability would later prove essential to Epiroc's differentiation against competitors who remained specialists in either underground or surface applications.
Building on this, in 2005, Atlas Copco launched an almost silent surface drill rig, optimized for continuous operation in urban environments and densely populated areas, addressing noise regulations while maintaining high productivity.
The silent rig demonstrates how acquisitions catalyze organic innovation. The Ingersoll-Rand purchase brought surface drilling expertise, but it was Atlas Copco's engineers who recognized the market opportunity in urban environments where noise restrictions limited conventional equipment operation. This pattern—acquiring capability, then innovating upon it—would become central to Epiroc's strategy.
V. Key Inflection Point #2: China R&D and Global Expansion (2011)
By 2011, the global mining industry's center of gravity had shifted decisively toward Asia. Chinese demand drove commodity prices, Chinese infrastructure projects required massive excavation, and Chinese mining companies were becoming global players. Atlas Copco's response was strategic and prescient.
In 2011, Atlas Copco established an R&D center in Nanjing, China, to better serve Asian markets by accelerating product development tailored to local needs and shortening time-to-market for innovations in rock excavation.
R&D center opened in Nanjing, China. The engineering is focused on the needs of Chinese customers and leads to shorter time-to-market.
This wasn't merely about reducing costs or accessing talent—though both mattered. The Nanjing R&D center reflected a deeper strategic insight: mining equipment success requires understanding local conditions. The rock formations, regulatory environments, customer expectations, and competitive dynamics in Asia differed fundamentally from those in Sweden or North America.
Engineers in Nanjing could observe Chinese customers operating equipment, identify pain points invisible to colleagues thousands of miles away, and develop solutions that reached market faster than products designed in Stockholm and adapted for Asian conditions.
This localization strategy would later intensify under Epiroc. Today, the company has R&D houses on all continents. This is a strategic decision to have hubs close to the end markets because the development is happening so fast when it comes to digital, when it comes to automation, and to have engineers close to the largest mining markets and construction markets, that is key.
The results are measurable. The company has increased its pace of inventions with five-times higher patent inventions compared to 2018. They also have a very strong position when it comes to new sales ratio, meaning that 61% of the equipment revenue comes from products that are younger than five years.
VI. Key Inflection Point #3: The 2018 Spin-Off from Atlas Copco
The story of Epiroc's birth begins with a recognition of strategic dissonance. By 2017, Atlas Copco had become a conglomerate serving fundamentally different customer bases: industrial manufacturers requiring compressors and vacuum technology, and mining companies needing drill rigs and excavation equipment. The cyclical nature of mining created communications challenges that obscured the strength of the broader enterprise.
Ronnie Leten, CEO of Atlas at the time of the spinoff, put it well by saying: 'I had to spend a lot of time talking about a weak mining industry both internally and externally, when in fact Atlas Copco was a very strong industrial group.' That dynamic made it difficult to give the right attention to both business areas. Management focus, board focus, M&A focus, and communications were not optimal when trying to serve two very different customer groups with different needs.
In January 2017, Atlas Copco AB initiated work to propose to the Annual General Meeting 2018 to decide on a split of the Group into two listed companies: Atlas Copco AB, with focus on industrial customers and Epiroc AB with focus on customers in the mining, infrastructure and natural resources segments.
The split mechanics were elegant. At Atlas Copco's Annual General Meeting on April 24, 2018, the decision was taken to distribute Epiroc AB to the shareholders of Atlas Copco AB and list Epiroc AB on the Nasdaq Stockholm stock exchange. All shares in the wholly-owned subsidiary Epiroc AB was distributed to Atlas Copco AB's shareholders in proportion 1:1.
The first day of trading in Epiroc AB was June 18, 2018.
This division allowed Epiroc to concentrate exclusively on equipment, services, and solutions for mining, infrastructure, and natural resources, while Atlas Copco refocused on broader industrial applications such as compressors, generators, and assembly systems.
Helena Hedblom, who was then Senior Executive Vice President for Mining and Infrastructure and would become CEO in 2020, captured the transformative potential of independence: I think the split from Atlas Copco was a critical moment in our history. It gave us the chance to improve something that was already very strong. We were proud to be part of Atlas, but when creating Epiroc, we suddenly had the opportunity to take 145 years of legacy and shape it almost like a startup. That meant avoiding the mindset of "doing what we've always done" and instead daring to be visionary about the future.
It was about being bold in our statements, changing our language, how we communicate the brand, and how we position ourselves. We wanted to be clearly recognized as both a technology leader and a sustainability partner. The split allowed us to do these things more openly and with greater clarity than before.
Even the company's name carried meaning. Derived from "epi" (upon) and "roc" (rock), Epiroc symbolized mastery over the earth, and now stood ready with tools built for a digital age after decades of relentless focus on innovation.
The spin-off's financial success was immediate. In its first year as a standalone company, Epiroc reported a revenue of SEK 34.6 billion (approximately USD 3.9 billion) for the full year 2018. The company demonstrated solid growth, with an operating profit (EBIT) of SEK 5.5 billion, resulting in a margin of 15.9%.
By 2019, Epiroc continued its upward trajectory, achieving revenues of SEK 36.6 billion and an EBIT of SEK 6.2 billion, a margin of 17.0%. The company focused on innovation and technology, enhancing its product offerings in automation and digital solutions.
Helena Hedblom perfectly captured that turning point: "The split allowed us to do these things with greater clarity than before. And I think we really embraced that, which unlocked a lot of energy in the organization. The people, products, and foundation were the same, but the creativity and drive were unleashed – and you can see that reflected in our results. We've become faster and more clear in our direction."
For investors, spin-offs often unlock value by creating pure-play companies that attract specialist shareholders. Epiroc's independence allowed investors seeking mining equipment exposure without the complexity of Atlas Copco's industrial portfolio. The Wallenberg family maintained their commitment to both entities, providing continuity while enabling strategic divergence.
VII. Key Inflection Point #4: The Automation & Electrification Bet (2016–Present)
The defining strategic bet of Epiroc's independent existence has been its all-in commitment to automation and electrification—technologies that promise to fundamentally transform how mines operate.
The electrification journey began before the spin-off. In 2016, we launched our first battery-electric machines and we aim to offer a complete fleet of underground mining equipment as battery-electric. Most underground drill rigs had been electrified for years through cables, but battery technology opened possibilities for loaders and trucks that needed mobility throughout mines.
The Boliden partnership exemplifies what electrification can achieve. Boliden, Epiroc and ABB have passed a new technology milestone by successfully deploying the first fully battery-electric trolley truck system on an 800-meter-long underground mine test track in Sweden, with a 13 percent incline.
Boliden opened its "almost fossil-free" Rävliden extension of the Kristineberg mine in Sweden in mid-May and, according to Epiroc, the 5-km electrified ramp haulage solution in place is already increasing productivity. This means a largely electrified vehicle fleet and infrastructure, including the 5-km electric trolley line for hauling the ore from a depth of 750 m to the surface. The trolley solution in place at the operation has increased productivity by 23%.
The productivity gains come alongside dramatic cost reductions. This resilience stems from operational efficiencies and R&D-driven innovations like the electrified ramp haulage system in Boliden's Kristineberg mine, which boosted productivity by 23% while cutting maintenance costs by 25%.
To support mining electrification beyond vehicles, Epiroc executed strategic acquisitions to build a complete ecosystem. Epiroc agreed to acquire Meglab, a Canadian company with expertise in providing electrification infrastructure solutions to mines. Meglab, based in Val-D'Or, Quebec, Canada, is a technology integrator that designs, manufactures, installs and supports practical and cost-effective electrification and telecommunications infrastructure solutions. Its products and solutions include system design, substations, switchgears and automation system solutions, enabling the infrastructure needed for mine electrification and equipment charging solutions.
Epiroc's recent strategic acquisitions of companies such as JTMEC, Meglab, and FVT have helped them provide a robust 360-degree electrification infrastructure ecosystem that can cater to the unique demands of the mining industry which is marketed as Epiroc Electrification Solutions or EES.
The automation story is equally transformative, and nowhere is this clearer than at Roy Hill. LinkOA is interoperable and scalable regardless of manufacturer, so called Original Equipment Manufacturer (OEM) agnostic. Ultimately, the mine's autonomous fleet will comprise 54 Caterpillar 793F trucks and 24 Hitachi EH5000 trucks.
This OEM-agnostic approach is a crucial differentiator. Most mining equipment manufacturers design automation systems that work only with their own equipment, forcing customers into single-vendor fleets. Epiroc's OEM-agnostic approach is a unique capability, strengthened by acquisitions like RCT and ASI Mining, which gives mining customers the freedom to deploy automation and digital solutions across any equipment brand. This unmatched flexibility enables customers to modernise existing fleets, integrate new technologies seamlessly, and avoid vendor lock-in.
On July 3, 2024, we acquired the remaining shares of ASI Mining, a mining automation specialist and our collaboration partner in the Roy Hill project in Australia. In this project, we are converting a mixed fleet of almost 80 haul trucks to driverless operations. When this project is complete, we will have created the world's largest autonomous mixed fleet mine.
In the third quarter of 2025, Epiroc recognized around MSEK 300 in revenues from the project. Onwards, Epiroc anticipates annual and recurring revenues from the project, and the order book has been opened for more miners to enjoy the productivity, efficiency and safety of a mixed haul truck fleet.
The culmination of these efforts came in April 2025 with Epiroc's largest contract ever. The equipment order contract is valued at MAUD 350 (SEK 2.2 billion) over five years.
Epiroc's President and CEO Helena Hedblom and Fortescue Metals' CEO Dino Otranto held a contract signing ceremony at Fortescue's headquarters in Perth. "Fortescue is on the forefront of the mining industry in reducing emissions from operations, and in using automation to strengthen safety and productivity, and we are proud to support them on this important effort," says Helena Hedblom. "Not only is this the largest contract we have ever received, but it is also a major step forward for our electric-powered surface equipment."
The machines will eliminate around 35 million litres of diesel consumption annually, according to Fortescue. The deployment of this new fleet of electric drills will immediately start reducing our carbon footprint, cutting over 90,000 tonnes of COâ‚‚ emissions annually once the fleet is operational.
In 2024, the electrification revenues of group total were 4.2% and we have noticed that our first movers are happy with their BEV fleet with utilization more than doubling in 2024. In total, 39 mining sites globally have ordered battery electric equipment since we launched our 2018 generation of BEVs. And of the sites with BEVs in operation, 28% have already ordered more.
VIII. Helena Hedblom Era & Strategic Transformation (2020–Present)
The Board of Directors of Epiroc AB appointed Helena Hedblom as the new President and CEO of Epiroc AB, effective March 1, 2020. She replaced Per Lindberg, who had decided to leave his position after having successfully established Epiroc as a listed company.
"Helena has a strong business focus, an in-depth knowledge of the business and is an appreciated leader who is living and breathing the Epiroc values," said Ronnie Leten, Chair of Epiroc's Board of Directors. "As head of the Mining and Infrastructure business she has grown the business with increased earnings and a focus on strengthening productivity, safety and efficiency for customers. We are proud that we found the new leader inside the Group and are confident that she will further develop and grow Epiroc." Helena Hedblom was currently Senior Executive Vice President Mining and Infrastructure and a member of Epiroc Group Management.
She is born 1973, a Swedish citizen, and has a M.Sc. in Material Technology from the Royal Institute of Technology, Stockholm, Sweden.
She stepped in as CEO just two weeks before the pandemic began so it was really crisis management from the start. The timing was brutal—taking the helm of a global industrial company just as COVID-19 shut down mines, disrupted supply chains, and created unprecedented uncertainty. Yet this trial by fire would prove formative.
Those experiences were defining for her both during the split and later through the pandemic. We operate in 150 countries, and those years were very challenging to manage. But they were also an important learning experience in leadership, seeing the strength of our decentralized model, learning how critical it is to be clear on priorities, and realizing how much can be achieved even in very difficult circumstances.
She describes her leadership approach as: curious, honest, fact-oriented, performance-oriented, and a good listener.
Decisiveness has become a defining characteristic of Helena's leadership style. Moving fast and moving forward is essential; the paralysis of indecision can cripple a company like Epiroc.
Under Hedblom, M&A velocity has accelerated dramatically. Epiroc burst out of the blocks after its 2018 rebadging and Stockholm public listing with 27 acquisitions adding about US$1.25 billion of initial annual sales in areas seen to define the key future battlegrounds for the industry's old guard of major suppliers.
The group's total revenues have grown by about 10% a year since 2018, with acquired businesses contributing 3% per annum of incremental gain. "We are big believers in speed," Hedblom told bank analysts and media in Nevada ahead of the MINExpo show.
The decentralized operating model enables this acquisition velocity. Most of the acquisitions we look at involve privately owned companies, and building trust with the owners is essential. That doesn't happen overnight, it can take years. Several of the deals we've closed in the past three years started from relationships we began six years earlier. In many ways, it's like a long courtship: starting with smaller partnerships, proving we can create value together, and gradually earning the confidence that leads to a transaction. So the timing of deals reflects when that trust matures, not where the market happens to be.
The 2024 acquisition of STANLEY Infrastructure from Stanley Black & Decker was Epiroc's largest ever. Epiroc completed the acquisition of STANLEY Infrastructure, a global manufacturer of excavator attachments and handheld hydraulic tools. The strategic acquisition will strengthen Epiroc's presence in the attachments business in infrastructure and construction, especially in the U.S. It designs, manufactures, and sells attachments, typically used on excavators, and handheld hydraulic and battery-powered tools for applications in infrastructure, construction, scrap recycling, demolition and railroad infrastructure. Its strong and innovative brands include LaBounty, Paladin, Pengo and Dubuis.
IX. The Business Model: How Epiroc Makes Money
At its core, Epiroc operates what might be called an industrial platform business—one where initial equipment sales create ongoing revenue streams that prove far more valuable than the capital equipment itself.
Net sales break down by family of products and services as follows: excavation, construction and demolition equipment and services (76.7%): drilling rigs, excavators, loaders, trucks, etc. Net sales by revenue source are divided between sales of services (55.6%) and equipment (44.4%).
Approximately 69% of group sales are from the aftermarket, which includes services and the sale of spare parts and consumables.
This aftermarket concentration creates a fundamentally different business profile than a pure equipment manufacturer. On the equipment side, we focus on the best technology and the most robust machines, designed to run for as many hours as possible before maintenance. But it's really in the maintenance where you prove productivity and reliability for the customer. If we succeed there, our customers succeed too.
If we fail, it opens the door for them to consider other suppliers when the next tender comes. That's why aftermarket excellence, alongside innovation, is such a core strength for Epiroc. It's not rocket science, but it's very tough operations. Day and night, all year round, you need to have technicians available who can solve problems quickly and effectively. Our machines are mission critical. If they stop, there's no production, and the cost of downtime can quickly become huge. That's why we've invested heavily in our footprint since Epiroc was created.
Epiroc had more than 1,200 customer sites with service agreements, including over 300 with Epiroc technicians on site and many site machine service and overhaul workshops that were like "small factories out in the world". This is a very strategic area because in the end it creates loyalty, recurring business, and also stability over tougher times where we in a way lock out pirates.
The connected machines platform amplifies this moat. Epiroc's equipment streams data that enables predictive maintenance, performance optimization, and operational insights. This digital nervous system transforms traditional equipment sales into a platform business where data creates value for customers while simultaneously deepening Epiroc's relationships and competitive position.
About 22% of its orders are from infrastructure customers, and the remaining 78% is from mining.
The 2024 financial results demonstrated the model's resilience. Revenues increased 5% to record-high SEK 63.6 billion, supported by acquisitions and strong mining demand. The adjusted operating margin was 19.8% (21.7), and several actions to improve profitability were taken.
In 2024, orders received and revenues for Epiroc reached record highs, supported by acquisitions and strong demand from mining customers. Demand for solutions for automation was particularly strong.
To remain the technology leader within automation, digitalization and electrification, Epiroc continued to invest in innovation. In addition, several acquisitions were completed, strengthening Epiroc's position further.
Innovation is at the heart of Epiroc. With close to 2,000 R&D engineers globally, roughly 10% of our workforce is dedicated to developing value-creating solutions for our customers.
X. Competitive Landscape
Epiroc operates in a concentrated competitive environment dominated by a handful of global players, each with distinct strengths and strategic positioning.
Collectively, the top 4 underground equipment suppliers had a share of the fleet of a total of 101%. Sandvik AB had the highest share of the fleet of 42%, followed by Epiroc AB (29%), and Caterpillar Inc (19%), while Komatsu Ltd (11%) had the lowest share of the fleet.
When we look at these four global corporations they all have different product ranges as well as strengths or weaknesses. Not one of them has a complete equipment range to supply a modern mine in a "one stop" buying experience, Epiroc and Sandvik are probably the closest.
Epiroc is another Swedish company. It recently was spun off from Atlas Copco so it is totally focused on mining and underground mining.
Sandvik represents Epiroc's most direct competitor. Like Epiroc, Sandvik is Swedish, with deep heritage in mining equipment and rock drilling tools. Sandvik is a large Swedish company that in 2019 had sales of about 11 billion USD. The two companies compete intensely across underground mining equipment, rock drilling tools, and increasingly in automation and electrification. Sandvik's 2019 acquisition of Artisan brought battery-electric technology that challenged Epiroc's early lead in this space.
Caterpillar brings massive scale and brand recognition but focuses primarily on surface mining and construction. Its underground mining presence is smaller, and its strength lies in the massive trucks and excavators used in open-pit operations. Caterpillar's approach to automation has traditionally been more proprietary, though competitive pressure is forcing greater openness.
Komatsu entered underground mining aggressively through the 2017 acquisition of Joy Global. Komatsu has been on a buying spree for awhile and now owns some interesting technologies related to underground mining. They bought Montabert hydraulic drills one of the top names in hydraulic drills. They also bought Joy Global and with it MTI from Canada. They also own the innovative Letourneau hybrid wheel motor technology and have applied this to their big underground loaders. Their recently shown drill jumbo offers a hoseless option which should be interesting to say the least. A lot of innovation from a new player to the underground space.
Key companies such as Caterpillar Inc., Komatsu Ltd., Sandvik AB, and Epiroc AB stand out with their extensive product offerings and global reach. These companies focus on various aspects of mining technology, including automation, remote monitoring, and advanced drilling equipment. Caterpillar and Komatsu are known for their high-performance mining trucks and excavators, while Sandvik and Epiroc are recognized for their advanced drilling and rock excavation technologies. Service diversification is a key strategy, with companies offering comprehensive maintenance, support, and training services alongside their core products.
Epiroc's differentiation centers on three pillars: OEM-agnostic solutions (particularly in automation), electrification leadership, and aftermarket excellence. The Roy Hill project exemplifies the first—Epiroc's LinkOA system operates Caterpillar and Hitachi trucks, something neither manufacturer's own automation systems could achieve. The Fortescue contract validates the second. And the company's 69% aftermarket revenue mix reflects the third.
The mining equipment segment of the off-highway equipment industry has grown significantly in recent years, with a global market size of $62.23 billion in 2024. The analyst projects a 2024-30 compound annual growth rate (CAGR) of 4.6%, reaching $81.58 billion in revenue by 2030. Factors driving industry growth include demand for critical minerals for electric vehicles, growth in underground mining, technological innovation in smart equipment and robotics, and sustainable practices in mining.
XI. Porter's 5 Forces & Hamilton's 7 Powers Analysis
Porter's Five Forces
1. Threat of New Entrants: LOW
The barriers to entering mining equipment manufacturing are formidable and multidimensional:
Epiroc has more than 1,200 customer sites with service agreements, including over 300 with Epiroc technicians on site and many site machine service and overhaul workshops.
Replicating this global service infrastructure would require decades and billions of dollars. A new entrant might build excellent equipment, but without technicians stationed near mines around the world, they cannot provide the 24/7 support that mining operations require.
Epiroc is proud of its heritage in this business since 1873. The 150-year history creates customer relationships, operational knowledge, and brand trust that cannot be purchased.
2. Bargaining Power of Suppliers: MODERATE
Epiroc manufactures key components in-house while outsourcing non-critical items to diversified supplier bases. The company's scale provides purchasing leverage, while its technical specifications create switching costs for suppliers who have invested in meeting Epiroc's requirements.
3. Bargaining Power of Buyers: MODERATE-HIGH
Large mining companies like BHP, Rio Tinto, and Vale possess significant negotiating power and the technical sophistication to evaluate competing offers rigorously. However, switching costs are meaningful: changing equipment suppliers requires retraining operators and technicians, reconfiguring maintenance systems, and managing integration risks.
If we fail, it opens the door for them to consider other suppliers when the next tender comes. This dynamic disciplines Epiroc's service performance while creating competitive moats for incumbents who deliver.
4. Threat of Substitutes: LOW
There is no substitute for mechanized mining equipment in hard rock extraction. If anything, demand intensity is increasing: Demand for critical minerals and rare earth elements: The global push for electric vehicles (EVs) and renewable energy are driving demand for lithium, cobalt, nickel, copper, and rare earth elements. Mining companies are expanding exploration and extraction activities to meet this demand.
The energy transition requires more mining, not less. Solar panels, wind turbines, batteries, and electric vehicles all require metals that must be extracted from the earth using equipment like Epiroc's.
5. Competitive Rivalry: HIGH
Competition among the major players is intense and increasingly technology-focused. The race for automation and electrification leadership has accelerated investment and acquisition activity across the industry. Price competition is disciplined by the critical nature of the equipment and the importance of service, but margin pressure exists in commoditized product categories.
Hamilton's 7 Powers Analysis
1. Scale Economies: STRONG
Epiroc's Ă–rebro site is its largest production site with almost 3,000 employees. Manufacturing scale creates cost advantages in production, purchasing, and R&D amortization. The global service network benefits from scale in training, inventory management, and technician deployment.
2. Network Effects: EMERGING
Epiroc's connected machines platform creates nascent network effects. The connected fleet now exceeds 3,450 machines. It is pleasing to see that our customers trust our abilities, which have translated into a strong demand for solutions for mixed fleet automation for all types of driverless machines.
As more machines connect, the data available for optimization increases, improving the insights Epiroc can offer every customer. The pattern recognition possible across thousands of installations enables predictive maintenance and performance benchmarking impossible for smaller fleets.
3. Counter-Positioning: MODERATE
Epiroc's OEM-agnostic approach to automation represents a form of counter-positioning against Caterpillar and Komatsu, whose closed ecosystems cannot match this flexibility without undermining their equipment business models.
4. Switching Costs: STRONG
Mining operations build expertise around specific equipment platforms. Operators are trained on particular machines, technicians understand specific maintenance requirements, spare parts inventories are tailored, and operating procedures are optimized. Switching vendors disrupts all of this.
Epiroc's aftermarket solutions and global service presence increase the productivity and extend the service life of equipment while also strengthening customer relationships.
5. Branding: MODERATE
In industrial equipment, brand matters differently than in consumer goods. It signals reliability, support quality, and technological capability. Epiroc's 150-year heritage and Wallenberg association provide credibility that newer entrants cannot claim.
6. Cornered Resource: LIMITED
No truly cornered resources exist in mining equipment—technologies can be licensed or developed, talent can be hired, and geographic advantages are temporary.
7. Process Power: STRONG
Peter Wallenberg established a customer-oriented and decentralized culture through giving employees a large degree of personal responsibility as well as accountability.
This cultural operating system, refined over decades, creates decision-making speed and customer responsiveness that competitors struggle to match. Our employees are humble, down to earth, and deeply committed to doing the right thing. I hear that feedback often from customers around the world, they value the local Epiroc teams on or near their sites. To me, that is a true testament to our strength.
XII. Key Metrics to Watch
For long-term investors monitoring Epiroc, three metrics capture the most essential dynamics:
1. Aftermarket Revenue as Percentage of Total Revenue
Currently around 69%, this metric reflects the stickiness of customer relationships and the recurring nature of Epiroc's business. Higher aftermarket percentages indicate stronger customer lock-in and more resilient revenue streams. Declines would signal competitive pressure or customer churn.
2. Electrification Revenue Percentage
In 2024, the electrification revenues of group total were 4.2%.
This metric tracks Epiroc's success in the technology transition that will define mining's future. Growth here validates strategic positioning; stagnation would raise concerns about competitive threats or slower-than-expected adoption.
3. Adjusted Operating Margin
The adjusted operating margin was 19.8% (21.7 prior year), and several actions to improve profitability were taken.
Margin sustainability amid acquisition integration, technology investment, and competitive pressure reflects management quality and business model strength.
XIII. Risks and Considerations
Mining Cyclicality: Despite Epiroc's aftermarket concentration, the business remains exposed to mining industry capital cycles. When commodity prices collapse, mines defer equipment purchases, reduce maintenance spending, and pressure suppliers on pricing.
Technology Transition Risk: The bet on automation and electrification could prove premature if adoption slows, or competitive if rivals accelerate development. The 4.2% electrification revenue share, while growing, remains small relative to total business.
Integration Risk: The aggressive acquisition pace creates integration challenges. Profitability was impacted negatively by dilution from acquisitions and weak demand from construction customers.
Currency Exposure: Revenues and costs span numerous currencies, creating translation effects that can obscure underlying performance.
Regulatory Environment: Mining faces increasing environmental scrutiny globally. While Epiroc's electrification focus positions it well for this transition, delays in permitting or changes in mining regulations could impact customer spending.
XIV. Myth vs. Reality
MYTH: Epiroc is a cyclical mining equipment company vulnerable to commodity price swings.
REALITY: With 69% aftermarket revenue, Epiroc's earnings are far more stable than pure equipment manufacturers. Mines must maintain equipment regardless of commodity prices, and consumables like drill bits are depleted whether mines are expanding or merely operating.
MYTH: Automation will cannibalize Epiroc's service business as machines require less maintenance.
REALITY: Autonomous equipment typically increases utilization rates, operates in more consistent patterns, and generates data that enables additional service revenue through optimization consulting and performance upgrades.
MYTH: Electrification is primarily about environmental marketing.
REALITY: The electrified ramp haulage system at Boliden's Kristineberg mine boosted productivity by 23% while cutting maintenance costs by 25%. Electric vehicles have fewer moving parts, require less ventilation infrastructure underground, and reduce operating costs—providing economic benefits beyond emissions reduction.
XV. Conclusion: The Wallenberg Model in the Digital Age
Epiroc represents something rare in global markets: a 150-year industrial heritage combined with a startup mentality in technology adoption. The Wallenberg family's patient capital provides a foundation few competitors can match—an ownership structure that thinks in decades rather than quarters and has proven willing to make bold strategic moves when opportunity demands.
The split allowed us to do these things with greater clarity than before. The people, products, and foundation were the same, but the creativity and drive were unleashed.
The company's strategic positioning at the intersection of mining's essential needs and transformative technologies creates a compelling investment thesis. The world needs more copper, lithium, nickel, and rare earth elements. Extracting them safely, efficiently, and with lower environmental impact requires exactly the automation, electrification, and digital solutions that Epiroc provides.
Yet questions remain. Will electrification adoption accelerate fast enough to justify current valuations? Can Epiroc maintain its technology lead as competitors invest aggressively? Will the acquisition-heavy strategy deliver returns commensurate with the capital deployed?
Epiroc creates value for stakeholders by conducting responsible business while striving to achieve sustainable and profitable growth. Creating options for the future – for example through acquisitions – is embedded in the strategy.
For investors seeking exposure to the picks and shovels of the energy transition—companies that benefit regardless of which mining companies succeed—Epiroc merits serious consideration. The Wallenberg heritage provides strategic patience. The Helena Hedblom era provides operational intensity. And the technology positioning provides exposure to trends that will shape mining for decades to come.
As the Roy Hill trucks continue their autonomous journeys across the Pilbara, controlled from 1,100 kilometers away, they represent not just a technological achievement but a strategic vision made manifest. Epiroc didn't build those trucks, but it made them drive themselves. In a world demanding more metals and better ways to extract them, that capability may prove to be the most valuable picks and shovels of all.
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