Atlas Copco’s Q3 Profit Dips Less Than Expected, Demand Seen Steady Short-Term
STOCKHOLM, October 23, 2025 — Swedish industrial powerhouse Atlas Copco (ATCOa.ST) reported a slight decline in third-quarter profit on Thursday, though the results came in better than analysts expected. The company said that global customer demand remains stable in the short term, signaling cautious optimism amid ongoing economic uncertainty.
The operating profit before items affecting comparability fell to 8.86 billion Swedish crowns ($941 million), compared with 9.44 billion crowns a year earlier — a drop of about 6%. Despite the decline, the figure exceeded analyst expectations of 8.68 billion crowns, according to data from LSEG.
Revenue also saw a modest contraction, declining 3% year-on-year, reflecting a softer industrial environment.
Order Intake and Sales Performance
Atlas Copco reported an order intake of 40.5 billion crowns, down 4% from the previous year and slightly below the 41.0 billion forecast by analysts. However, when excluding the impact of acquisitions, order volumes were unchanged, highlighting resilient demand for the group’s products and services.
The company noted in its statement that demand across business segments was mixed, with some regions performing better than others. Overall, order volumes remained stable both year-over-year and compared to the second quarter.
Profit Margins Impacted by Tariffs and Costs
Atlas Copco, which earns about one-quarter of its total revenue from North America, said that higher costs related to trade tariffs and supply chain pressures affected its profit margins during the quarter.
The group, known for its extensive portfolio ranging from air treatment systems and power tools to industrial compressors and construction equipment, continues to navigate a complex macroeconomic landscape marked by fluctuating raw material prices and shifting global demand.
Market Reaction and Share Performance
Following the earnings announcement, Atlas Copco’s shares were little changed at 1038 GMT, suggesting that investors were largely reassured by the company’s better-than-expected profit and steady demand outlook.
Analysts noted that the company’s strong operational resilience, diversified product mix, and focus on efficiency improvements continue to position it well against industrial peers in Europe and globally.
Stable Short-Term Outlook
Looking ahead, Atlas Copco said it expects customer activity to remain at current levels in the short term, signaling a stable outlook despite macroeconomic headwinds.
“Demand for our products and services was mixed during the quarter, but overall volumes remained relatively stable compared with both last year and the previous quarter,” the company said in its statement.
This guidance suggests that Atlas Copco anticipates steady industrial demand across its key markets, even as global growth slows and trade tensions persist.
Financial Overview
| Metric | Q3 2025 | Q3 2024 | % Change | Analysts’ Forecast |
|---|---|---|---|---|
| Operating Profit (Before Items) | 8.86 billion SEK | 9.44 billion SEK | -6% | 8.68 billion SEK |
| Order Intake | 40.5 billion SEK | 42.2 billion SEK | -4% | 41.0 billion SEK |
| Sales | 3% decline YoY | — | — | — |
Industry Context
Atlas Copco’s Q3 results reflect broader trends in the industrial manufacturing sector, where companies face a mix of rising production costs, slowing orders, and regional market disparities.
Despite challenges, the company’s technological innovation, sustainability initiatives, and expansion in high-growth segments — including clean energy and smart manufacturing — continue to underpin long-term growth potential.
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