Atlas Copco AB

Atlas Copco reported organic order growth of 26% and organic revenue growth of 8% in Q2 2026, with adjusted operating profit up 12% in absolute terms and an adjusted margin of 21%. The reported profit before tax was SEK 9.1 billion versus SEK 8.4 billion last year, and income tax expense was SEK 2.1 billion at an effective tax rate of 22.8%. Return on capital employed was 24%, and cash flow was SEK 6.8 billion. For the quarter ahead, management expects customer activity to remain at the same elevated level seen from Q1 to Q2, excluding large orders and seasonality; they also said tax rate should stay around 22.8%, maybe slightly lower.

Vagner Rego struck an upbeat tone, emphasizing record order intake across several segments and broad-based growth rather than dependence on one market. He highlighted semiconductor, industrial compressors, vacuum, industrial assembly tools, power equipment, and Gas and Process as key drivers, and stressed that the group is focused on capturing aftermarket potential through services. He also framed the company’s strategy as combining organic growth, innovation, and selective acquisitions, while continuing to ramp production to support demand.

Peter Kinnart focused on the financial mechanics behind the quarter: pretax profit of SEK 9.1 billion, income tax of SEK 2.1 billion, and a 22.8% tax rate that he expects to stay near that level. He said the group margin was flat at 20.6% year over year because of LTI programs and acquisition dilution, partly offset by currency, while volume-price mix supported better adjusted profitability. He also pointed to solid cash flow of SEK 6.8 billion despite higher inventories and receivables tied to the production ramp, and noted that working capital relative to revenue is improving gradually.

Analysts focused on backlog visibility, Gas and Process lumpiness, semiconductor pricing, and whether Vacuum Technique can outgrow WFE spending. Management said the order book is strong, but lead times and the timing of customer decisions mean Gas and Process can be lumpy and is hard to forecast quarter to quarter. On Vacuum Technique, they said demand is broad-based across regions and customers, pricing is positive, and ramp-up costs are intentionally being taken now to secure lead times and support future margin improvement.