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Investing.com -- Epiroc shares dropped 5.5% on Wednesday as the company’s third-quarter 2025 results revealed ongoing margin execution problems that have plagued its equity story throughout 2024-25.
The mining equipment manufacturer posted a 90 basis points margin miss in Q3, with operational leverage continuing to disappoint investors. Despite achieving 5% organic revenue growth, the company only managed to generate 5% operational leverage on that growth, with product mix issues and tariffs acting as significant margin drags.
While overall orders aligned with consensus expectations, with Equipment and Tools & Attachments segments slightly exceeding forecasts, services growth was notably weak at just 2%. This performance lagged well behind industry peers, with Sandvik reporting 6% services growth and Metso achieving 16% in the same segment.
Foreign exchange has now become a headwind for Epiroc’s earnings, creating a negative SEK 230 million impact in the EBIT bridge. This currency pressure is expected to worsen in the fourth quarter, suggesting additional margin compression ahead for the company.
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