How Does Epiroc Company Work?

Capital equipment is produced primarily in Europe and North America; consumable tooling is manufactured in global tooling plants. Critical components like rock drills, drifters and BEV powertrains are developed in‑house while batteries and advanced electronics are sourced from strategic suppliers with multi‑sourcing and regional logistics hubs near major mining belts.

• Direct key‑account sales to majors and mid‑tiers; distributors for contractors and smaller mines.
• Lifecycle and on‑site contracts (MARCs/LCS) embed services into customer operations, increasing recurring revenue.
• Regionalized inventory hubs in the Americas, Australia and Africa reduce lead times for parts and consumables.
• Installed base telemetry supports predictive maintenance and spares optimization across fleets.

Epiroc’s tight integration of equipment, tools and digital solutions drives measurable productivity, energy and cost improvements at customer sites.

• Autonomous drilling systems deliver 10–30% uplift in drilling productivity for suitable ore bodies and bench operations.
• Battery‑electric vehicles combined with ventilation‑on‑demand can reduce ventilation energy use by 20–70%, depending on depth and ventilation design.
• Predictive maintenance via IoT telemetry yields double‑digit reductions in total cost of ownership through fewer unplanned stops and optimized parts replacement.
• Aftermarket and services contribute a stabilizing recurring revenue stream; lifecycle contracts improve uptime and fleet utilization.

Key pricing and contract structures that drive monetization and gross‑margin expansion.

• Equipment historically: 40–50% of revenue in cycle upswings; 2023–2024 saw strong orders from hard‑rock and battery‑metal mines.
• Aftermarket services: 35–45% of revenue with higher gross margins; service reached record levels in 2024 due to larger installed base and utilization.
• Consumables: 10–15% of sales, recurring and volume‑linked to metres drilled/tonnes moved.
• Technology: mid‑single‑digit revenue share but fastest‑growing; higher attach rates on new equipment deliveries.
• Electrification: small but growing share with premium pricing; value from ventilation and operating cost reductions.
• Contracts: tiered MARC service levels, availability/output‑based fees, tool‑per‑metre pricing and autonomy/optimization cross‑sells.

Epiroc leverages a large installed base, integrated autonomy stack, BEV portfolio and software‑driven maintenance to lock in customers and raise fleet availability versus pure‑play equipment rivals.

• High recurring revenue from services and parts supported by a dense global service network.
• Proven autonomy integrated across rigs and loaders improves productivity and safety.
• BEV machines reduce ventilation costs and emissions, aiding sustainability targets.
• Continuous software updates and data analytics drive predictive maintenance and higher uptime.

Epiroc focuses on scaling autonomy across mixed fleets, accelerating BEV adoption with faster charging and higher‑density packs, expanding performance‑based service contracts and deepening data/AI analytics to raise throughput and cut unplanned downtime.

• Scale autonomy and mixed‑fleet integration to improve asset utilization and safety
• Increase BEV pipeline and reduce total cost of ownership via faster charging and denser batteries
• Monetize software and analytics to lift recurring revenue and service margins
• Mitigate FX and execution risks while prioritizing Tier‑1 mining region growth