Epiroc CEO Helena Hedblom says the world’s “geopolitical challenges” are helping drive stronger mineral exploration levels and could accelerate positive production decisions and mining fleet renewals.
Speaking after the Swedish company posted its June quarter and first-half financial results, Hedblom said while Epiroc’s mining-dominated revenue and order growth had slowed, reflecting a range of short-term factors including currency fluctuations and the general lumpiness of mining equipment sales, underlying demand remained robust and management continued to look at an opportunity pipeline that was at an historically strong level.
“When I look at the pipeline, I share with you, there is a lot of business out there for the coming years,” Hedblom said.
While the company had announced its largest ever contract, a SEK2.2 billion deal with Australian iron ore miner Fortescue, in Q2, the timing of such major orders remained unpredictable. But Hedblom hinted more of them were in the proverbial pipeline.
“There are a lot of opportunities in the coming years,” she said.
“I think we need to look at this more in a long-term perspective.
“If I zoom out, if I’m talking more from an historical level, the pipeline looks strong. And if we look at the combination of that together with the underlying demand … It’s still at solid levels. The average age of the [installed] fleet is also at an all-time high level and that of course is good for us because it will eventually translate into replacement orders.
“[So] I’m not that worried because as I said we have quite a lot in the pipeline and it’s always a timing thing as well when you invoice equipment.
“Due to the geopolitical situation in the world countries are looking more and more at their own assets. I think the US is an example of that, pushing copper and other projects. But it’s the same discussion ongoing in many parts of the world.
“The long-term plans are always there for the mining houses but I think this geopolitical situation we are in right now is, if anything, hopefully creating some speed on some of the decisions and permitting needed in some parts of the world to get new projects on board.
“I think also the geopolitical challenges in the world are helping drive exploration. It’s not the juniors who are super active. It’s more the mining houses expanding [brownfield]. Greenfield though … we are hearing more and more discussions.
“There is clearly more greenfield [exploration] in the pipeline a couple of years away.”
Orders received in the 2025 June quarter (79% mining) were down 7% year-on-year at SEK15.27 billion. Revenues fell 8% yoy to SEK15.13 billion. Aftermarket activity contributed 67% of Q2 revenues.
