Atlas Copco AB (publ)

Atlas Copco said organic order growth was 26%, organic revenue growth was 8%, adjusted profit increased 12%, and the group adjusted margin was 21%. Vagner Rego also said orders received rose by more than SEK 10 billion, with year-to-date orders received at SEK 96 billion and orders invoiced at SEK 85 billion. Peter Kinnart said profit before tax was SEK 9.1 billion versus SEK 8.4 billion last year, income tax expense was SEK 2.1 billion, and the effective tax rate was 22.8%; cash flow was SEK 6.8 billion. Forward guidance was sequential: management expects customer activity in the next quarter to remain at the same elevated level as Q2, with continued strength in semiconductors and general industry.

Vagner Rego struck an upbeat tone, saying the quarter was strong across several market segments and calling out record orders, especially in semiconductor, vacuum, compressors, tools, and power equipment. He emphasized broad geographic strength, a growing service business, and the importance of the aftermarket strategy. He also said the company is focused on ramping production quickly and keeping competitive lead times, especially in Vacuum Technique.

Peter Kinnart highlighted the financial bridge behind the quarter, noting a flat group margin of 20.6% year over year, with dilution from LTI programs and acquisitions partly offset by currency benefits and strong volume drop-through. He said profit before tax was SEK 9.1 billion, tax expense was SEK 2.1 billion, and the effective tax rate was 22.8%, which he expects to stay around this level, possibly down to 22.5%. On cash and balance sheet, he pointed to solid cash flow of SEK 6.8 billion despite higher inventories and receivables from the production ramp, and said working capital relative to revenue is gradually improving.

Analysts focused on how long the strong backlog can support growth, whether Gas and Process is likely to repeat its big quarter, and whether Vacuum Technique can raise prices and margins as demand tightens. Management said Gas and Process is inherently lumpy and hard to predict quarter to quarter, but the pipeline is healthy; they also said Vacuum Technique pricing is positive and margins should improve gradually as ramp-up costs are absorbed. On semi visibility, Vagner Rego said the business has little visibility because large customers can place significant orders suddenly, but the current order book and customer interactions support their view that activity will remain high.