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Atlas Copco
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Atlas Copco Group (Copco from Compagnie Pneumatique Commerciale) is a Swedish multinational industrial company. It manufactures compressors, vacuum equipment, pumps, generators, assembly tools, quality assurance equipment and other products and systems for industrial applications and mobile power generation. The products are sold in around 180 countries.[3][6]
Key Information
The company was founded in 1873 in Stockholm. By the end of 2024, the number of employees was around 55,000 and the yearly revenue 177 billion kr. Atlas Copco is listed on the Nasdaq Stockholm exchange, and its A and B classes of shares are both constituents of the OMXS30 index. The head office is in Nacka, near central Stockholm, on a site where the main factory of the company used to be located.[3][6][7]
History
[edit]Early development
[edit]AB Atlas, as it was previously named, was founded by Edvard Fränckel, who was a Swedish industrialist, politician and senior official at the Swedish State Railways. The company was established along with Andre O. Wallenberg, Johan W. Arnberg, Carl G. Cervin and Fredrik Didro.
In its inauguration phase, Atlas dealt with the manufacturing, purchasing and selling of material for railway construction and operations. After the recession in the 1880s, Atlas diversified its products and branched off into locomotives, central heating and tool machinery. In 1899, Atlas began developing their first air compressors and established itself as a compressor manufacturer. As older production branches started phasing out, Atlas teamed up with Diesel Motors in 1917, and the new company, Atlas Diesel, emerged with two primary divisions: diesel engines and compressor air products.[8]
War-time development
[edit]The Atlas Diesel merger experienced significant growth during the First World War and towards the end of the war, the export was 40–50 % of production. The depression years caused significant losses for the company, which led to several financial reconstructions in the 1920s and 1930s.
During the Second World War, manufacturing capabilities were developed. The "Swedish method" influenced the firm's pneumatic program, consisting of lightweight rock drills and drill bits with carbide tips. In 1948, the company terminated its diesel manufacturing and the name "Atlas Diesel" was no longer pertinent. The name Atlas Copco became official in 1955 and was inspired by the Belgian subsidiary Compagnie Pneumatique Commerciale (Trading Pneumatic Company).
Post-war international expansion
[edit]The acquisition of the Belgian compressor company Arpic Engineering in 1956, was the firm's first major international acquisition. Eventually, Arpic's plants carried out the majority of Atlas Copco's compressor production. In 1960, the company purchased Craelius. In the 1970s, a number of strategic acquisitions were made, including the French compressor manufacturer Mauguière. In order to strengthen their position in the United States, several strategic acquisitions were made in the airpower business, including the key purchase of Worthington Compressors.[9]
They purchased Chicago Pneumatic Tools in 1987. In 1992, AEG Elektrowerkzeuge was purchased, and in 1995, Milwaukee Electric Tool was acquired. In 2004, Milwaukee Electric Tool was sold to a Hong Kong-based manufacturer, Techtronic Industries.[10] In 1997, Atlas Copco purchased Prime Service Corporation, which was the largest machine leasing company in the United States. The North American Rental Service Corporation was purchased in 1999.[9]
Split-off of mining and infrastructure equipment business
[edit]-
Tunnel drilling machine "Rocket Boomer E2C", model 2009. The rock drilling equipment business belongs to Epiroc.
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ROC D3
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Atlas Copco equipment in the construction of West Link. The construction equipment business belongs to Epiroc.
In 2017, Atlas Copco announced that it planned to move its production of rock excavation, drilling and demolition equipment for the mining and infrastructure sectors into a separate listed company, the shares of which would be distributed to Atlas Copco shareholders. The new company was named Epiroc, and the transaction was completed in 2018. Trading in the shares issued started in June that year.[11][12][13]
Operations
[edit]Business areas
[edit]Since 2017, Atlas Copco has had four main business areas: Compressor Technique, Vacuum Technique, Industrial Technique and Power Technique.[14]
Compressor Technique
[edit]Atlas Copco's Compressor Technique area creates products such as industrial compressors, oil and gas treatment equipment, air management systems, and gas and process compressor and expanders. The products are mainly used in the manufacturing, oil, gas and process industries.[15]
Vacuum Technique
[edit]Atlas Copco's Vacuum Technique business area provides vacuum products, exhaust management systems, valves and related products mainly under the Edwards, Leybold and Atlas Copco brands. The main markets served are semiconductors, chemical processing industries, food packaging and paper handling. Principal product development and manufacturing units are located in the United Kingdom, Czech Republic, Germany, South Korea, the United States, China and Japan.
Industrial Technique
[edit]Atlas Copco's products in Industrial Technique are mainly developed for the automotive and aerospace industries, but are also used in industrial manufacturing, maintenance and vehicle service. Products manufactured include assembly systems, industrial power tools, quality assurance products and various types of software.[16]
Power Technique
[edit]This area produces portable compressors, lighting towers, pumps, generators, compaction equipment, demolition tools and construction tools for infrastructure projects. These include civil works, road construction, gas and oil, and drilling construction projects.[17]
Brands
[edit]-
Atlas Copco
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Chicago Pneumatic
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Desoutter Tools
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Edwards Vacuum
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Leybold

The Atlas Copco Group has around 80 brands, including Atlas Copco and Chicago Pneumatic for compressors and tools, Edwards for vacuum systems, BeaconMedeas for medical gas and Desoutter for assembly equipment.[18]
Notable brands include:
- Atlas Copco
- BeaconMedeas
- Chicago Pneumatic
- Desoutter Tools
- Edwards
- Leybold
Manufacturing and sales
[edit]Atlas Copco manufactures critical equipment components in-house and cooperates with business partners for non-critical components. Approximately 75% of the production cost of equipment represents purchased components and around 25% are internally manufactured core components, assembly costs and overhead. Equipment represents less than 64% of revenues and the manufacturing of equipment is primarily based on customer orders. Only some standard, high-volume equipment is manufactured based on projected demand.[19]
Atlas Copco has customer centres in about 71 countries and sales in about 180 countries. Sales and service are primarily direct but also channeled through alternative sales mechanisms, e.g. distributors. Sales of equipment are performed by engineers and service and maintenance are performed by technicians. Service is the responsibility of divisions in each business area. The responsibility includes the development of service products, sales and marketing, technical support, service delivery and follow-up. About 36% of revenues are generated from services (spare parts, maintenance, repairs, consumables, accessories and rental).[19]
Structure
[edit]Atlas Copco's operations are organized into four business areas and more than 20 divisions. The organization has both operating units and legal units. Each operating unit has a business board. The duty of a business board is to serve as an advisory and decision-making body on strategic operational issues. It also ensures the implementation of controls and assessments. Each legal company has a legal board focusing on compliance and the legal structure of the group.[20]
Innovation
[edit]Atlas Copco conducts research and development in a wide range of technologies at their global research centres, where each division has its own individual area of focus and resources. Training and workshops have been rolled out in customer centres and product companies globally. The company puts its focus on growth in automation to bring more production back to the US and Europe. In 2020, Atlas Copco acquired Isra Vision in February[21] and Perceptron in September[22] to automate more.[23] In March 2022, Atlas Copco acquired the assets of Ceres Technologies,[24] a US-based manufacturer and designer of gas and vapour delivery equipment for the semiconductor industry.[25]
Controversies
[edit]Atlas Copco has faced criticism for its operations in Russia during the geopolitical tensions following the Russian invasion of Ukraine. While the company announced plans to discontinue operations in Russia in line with international sanction concerns persist about the timing and ethical implications of its business activities during the conflict.[26][27]
References
[edit]- ^ Nasdaq European Market
- ^ Nasdaq European Market
- ^ a b c d e f g h "Annual Report 2024" (PDF). Atlas Copco Group. 2025. Retrieved 25 March 2025.
- ^ "Koncernstruktur ATLAS COPCO AB". Solid Info. Retrieved 4 April 2015.
- ^ "Facts in brief". Atlas Copco. Archived from the original on 4 April 2015. Retrieved 4 April 2015.
- ^ a b Jansson Myhr, Karin; Houltz, Anders; Friedman, David; Nilsson, Torun (2023). Atlas Copco Group : 150 years of innovation (PDF). Stockholm: Business History Publishing. ISBN 978-91-988167-5-4. Retrieved 26 March 2025.
- ^ Burton, John (2006). "Atlas Copco AB". International Directory of Company Histories. Gale Group. Retrieved 29 September 2010.
- ^ "From Atlas to Atlas Diesel". Atlas Copco. Archived from the original on 16 April 2016. Retrieved 4 April 2016.
- ^ a b "International acquisitions and expansion - Atlas Copco History between 1873 and 2013". Archived from the original on 23 June 2016. Retrieved 16 June 2016.
- ^ "Milwaukee Electric Tool, other units to be sold for $626.6M". 30 August 2004. Archived from the original on 19 April 2005.
- ^ Rolander, Niclas (16 January 2017). "Atlas Copco Plans Split in Two to List Mining Tool Business". Bloomberg News. Retrieved 26 March 2025.
- ^ Ericson, Per (21 June 2018). "Därför är Epiroc köpvärd". Placera (in Swedish). Retrieved 26 March 2025.
- ^ Hosie, Ewen (19 June 2018). "Epiroc cements Atlas Copco split with Nasdaq listing". Australian Mining. Archived from the original on 24 July 2019. Retrieved 26 March 2025.
- ^ "Organization". Atlas Copco.
- ^ "Compressor Technology". Atlas Copco Group.
- ^ Atlas Copco for investors [permanent dead link]
- ^ "Construction Technology - Atlas Copco". Atlas Copco Group. Archived from the original on 31 May 2016.
- ^ "Brands". Atlas Copco. Archived from the original on 30 September 2020. Retrieved 18 September 2020.
- ^ a b "Atlas Copco Annual Report 2019" (PDF). Atlas Copco Group.
- ^ "This is how we do business". Atlas Copco Group.
- ^ "Leading Machine Vision Systems". Isra Vision.
- ^ "History".
- ^ "Atlas Copco chief sees growth in automation as onshoring intensifies". Financial Times. 2020. Archived from the original on 10 December 2022.
- ^ "Home". Ceres Technologies. Retrieved 16 February 2023.
- ^ "Atlas Copco to acquire US supplier to the semiconductor industry". evertiq.com. Retrieved 17 March 2022.
- ^ "Atlas Copco". Leave Russia. Retrieved 23 January 2025.
- ^ "Atlas Copco is discontinuing operations in Russia". Sweden Herald. Retrieved 23 January 2025.
External links
[edit]
Media related to Atlas Copco at Wikimedia Commons
Atlas Copco
View on GrokipediaHistory
Founding and Early Development
Atlas Copco traces its origins to 1873, when it was founded in Stockholm, Sweden, as AB Atlas by André Oscar Wallenberg, along with partners including engineer Eduard Fränckel—who served as the first managing director—and industrialist D.O. Francke.[7][8] The company was established to manufacture equipment for Sweden's expanding railway network, with factories in Stockholm and Södertälje, and the Swedish State Railways as its primary customer.[8] Named after the Greek Titan Atlas, symbolizing strength and endurance, the venture quickly grew into Sweden's largest engineering firm during its initial years, producing railway components such as wheels, axles, and boilers.[7] By 1877, however, a recession and declining railway orders rendered the company unprofitable, prompting financial restructuring supported by Wallenberg's Stockholms Enskilda Bank.[8] In 1887, Fränckel was replaced by Oscar Lamm as managing director, leading to diversification into steel parts, bridges, and marine steam engines, though these efforts yielded limited success amid ongoing economic pressures.[8] The firm faced liquidation in 1890 due to persistent losses but was promptly reorganized as Nya AB Atlas (New Atlas), with renewed capital infusion from the Wallenberg family and a refocus on locomotives, commercial vehicles, and general machinery.[7][8] This reorganization marked a pivotal shift away from railway dependency, as Nya AB Atlas began exploring pneumatic technologies in the early 1890s.[7] By 1901, the company entered compressed air equipment production, laying the groundwork for its future core competencies in pneumatics, while phasing out unviable railway lines.[8] Under Gunnar Jacobsson's presidency starting in 1909, emphasis grew on innovative pneumatic tools and engines, positioning the firm for expansion beyond Sweden's borders in the subsequent decade.[8]World Wars and Technological Adaptations
During World War I, Sweden's neutrality enabled Atlas Diesel—formed in 1917 through the merger of Nya Atlas and AB Diesels Motorer—to capitalize on global demand for its diesel engines and pneumatic tools, with exports accounting for 40-50% of production and marine engines comprising four-fifths of foreign sales.[7][8] The company experienced robust growth, peaking its workforce at 1,450 employees in 1917, as pneumatic products, including compressed air equipment introduced in 1901, solidified as its core business amid wartime industrial needs.[8] Post-war economic contraction forced adaptations, slashing the workforce to 240 by 1923, but the firm pivoted toward refining pneumatic technologies for mining and construction, laying groundwork for sustained export reliance despite interwar protectionism and recessions that nearly led to bankruptcy in the 1930s.[8] In the lead-up to and during World War II, European rearmament drove pneumatic tool sales to triple between 1935 and 1939, while the compressed air division grew to represent two-thirds of total sales by the decade's end.[8] Sweden's continued neutrality allowed domestic focus, with the company supplying the Swedish military via Atlas Diesel's expansion into motors for torpedo boats and hydraulic gears for other applications; air compressor sales doubled wartime, offsetting international trade disruptions.[9][8] Labor shortages arose as many Swedish men entered military service in anticipation of invasion, prompting operational efficiencies and a strategic shift under managing director Ragnar Wehtje (appointed 1940) toward bolstering pneumatic and drilling equipment production over diesel engines, which were phased out by 1948.[10][8] This era's technological emphasis included advancements in portable compressors and rock drilling rigs, enhancing one-man operation efficiency by the late 1930s, which rationalized labor-intensive processes for wartime and mining applications.[10]Post-War International Expansion
Following World War II, Atlas Copco abandoned its diesel engine production to concentrate on pneumatic tools and compressors, aligning with rising global demand for industrial equipment amid economic recovery.[9] The postwar era saw accelerated international expansion, enabled by trade frameworks such as the 1944 Bretton Woods Agreement and the 1947 General Agreement on Tariffs and Trade (GATT), which reduced barriers and spurred exports that reached 65% of total sales by the mid-1950s.[11][8] Initial postwar footholds included Canada in 1949, where engineer George Blomdal established operations targeting North American markets.[12] In 1950, the company opened its first locations in the United States and Australia, alongside a sales office in Peru marking entry into South America; this was followed by Chile in 1954 and Brazil in 1955.[13][7] Over the 1940s and 1950s, more than 20 new sales offices were established worldwide to provide localized service and expertise, enhancing customer proximity.[6] A pivotal step occurred in 1956 with the acquisition of Belgian firm Arpic Engineering, employing 300 staff and specializing in compressors, which shifted production abroad and inspired the company's new name, Atlas Copco—combining "Atlas" with "Copco" from the Belgian subsidiary Compagnie Pneumatique Commerciale.[7][14] This move solidified multinational status, with Belgium emerging as a key manufacturing hub, including what became the world's largest compressor plant under Airpower.[6] To penetrate protected markets like France, CEO Erik Johnsson introduced "The Swedish Method" in the late 1940s, emphasizing efficient sales, service, and adaptation, which boosted exports and laid groundwork for broader European and global penetration.[6] By the early 1960s, these efforts had transformed Atlas Copco from a primarily Swedish exporter into a diversified international entity with subsidiaries across multiple continents.[11]Restructuring and Divestitures
In 1968, Atlas Copco implemented a significant restructuring to decentralize management and enhance operational independence, dividing the group into three autonomous production companies: Atlas Copco Mining and Construction Technique AB, Atlas Copco Tools AB, and Atlas Copco Components AB.[10] This reorganization shifted from centralized control to product-line-focused entities, aligning with post-war expansion needs and fostering subsidiary autonomy.[9] During the 2010s, Atlas Copco continued refining its structure to emphasize customer segments and core competencies. Effective July 1, 2012, the company reorganized into four business areas—Compressor Technique, Industrial Technique, Mining and Rock Excavation Technique, and Construction and Mining Technique—to better target specific markets and streamline operations.[15] In July 2017, the Construction Technique business area was renamed Power Technique as part of preparations to divest non-core assets and sharpen industrial focus.[16] A series of divestitures in 2017–2018 marked a strategic refocus on high-margin industrial tools and equipment. On October 5, 2017, Atlas Copco sold Dynapac, its road construction equipment business, which generated 2,900 MSEK in revenues and employed 1,280 people.[16] Followed by the February 2, 2018, sale of its concrete and compaction business to Husqvarna Group's construction division, involving 570 MSEK in revenues and 200 employees.[16] The capstone was the June 18, 2018, spin-off of the Mining and Rock Excavation Technique business area as Epiroc AB, distributed to Atlas Copco shareholders and listed on Nasdaq Stockholm; this unit had 31,440 MSEK in revenues and 12,948 employees in 2017, allowing Atlas Copco to concentrate on compressor, vacuum, and industrial assembly operations.[5][17]Recent Acquisitions and Strategic Moves
Atlas Copco Group executed 15 acquisitions in 2023, 23 in 2024, and 19 in 2025 through October, targeting expansions in core segments such as Compressor Technique, Industrial Technique, Vacuum Technique, and Power Technique to enhance product portfolios, geographic coverage, and customer service.[16] These moves align with the company's strategy of pursuing value-accretive opportunities in industrial equipment, pumps, automation, and measurement technologies, often integrating acquired entities to leverage Atlas Copco's global distribution network.[16] In 2025, significant deals included the October 2 acquisition of National Tank & Equipment, a U.S. specialty rental firm in Houston, Texas, with 349 employees and annual revenues of approximately 2,100 MSEK, bolstering the Power Technique business area's rental capabilities.[18] On October 14, Northern Compressed Air Ltd., a Yorkshire, UK-based compressed air distributor with 15 MSEK in revenues, joined the Compressor Technique segment to improve regional service offerings.[19] Additional October transactions encompassed SUTO iTEC on October 1, adding compressed air and gas measurement solutions with 136 employees;[20] RM Boggs Inc.'s compressor business in Iowa City, Iowa, on October 8;[21] and CRI-MAN S.p.A., an Italian pump manufacturer, closed on October 2.[22] A strategic joint venture formed in July 2025 involved acquiring 70% equity in Shanghai Shareway Environment Co., Ltd., to develop abatement technologies for semiconductor and industrial applications in China.[23] The 2024 acquisition spree featured November's purchase of Air Way Automation Ltd. in Michigan, USA, which provided automated bolt feeding systems for automotive and general assembly, employing 98 people with 35 MUSD in 2023 revenues.[24] December's acquisition of Metalplan Equipamentos LTDA in São Paulo, Brazil, added 90 employees and 120 MSEK in revenues, expanding Compressor Technique presence in Latin America.[25] Other 2024 deals, such as VisionTools Bildanalyse Systeme GmbH in Germany for smart assembly vision systems (80 employees, 14 MEUR revenues) and ESA Service S.r.l. in Italy for leak detection technologies (40 employees, 10.3 MEUR revenues), further diversified Industrial and Vacuum Technique offerings.[26][27] In 2023, December acquisitions of KRACHT GmbH in Germany, specializing in gear pumps with 440 employees and 766 MSEK revenues, strengthened Power Technique's positive displacement portfolio;[28] and Sykes Group Pty Ltd in Australia, a dewatering pump provider with 123 employees and 455 MSEK revenues, enhanced mining and wastewater solutions.[29] No divestitures occurred in this period, reflecting a focus on organic growth through integration rather than asset sales.[16]Corporate Structure and Governance
Ownership and Leadership
Atlas Copco AB is publicly listed on Nasdaq Stockholm, with a shareholder base exceeding 141,000 individuals and institutions as of December 31, 2024.[30] The company issues A shares with enhanced voting rights and B shares, resulting in concentrated voting power among larger holders despite broad ownership dispersion. Investor AB, the investment arm of the Wallenberg family, is the single largest shareholder, controlling approximately 17.2% of total shares and a higher proportion of voting rights due to its holdings in A shares.[31] Other prominent institutional investors include Swedbank Robur Fonder AB (5.18%) and The Vanguard Group, Inc. (3.6%), reflecting a stable base oriented toward long-term industrial investment.[31] Executive leadership is led by President and Chief Executive Officer Vagner Rego, appointed effective May 1, 2024, succeeding Mats Rahmström after his nearly eight-year tenure.[32] Rego, a Brazilian national who joined Atlas Copco in 1996, advanced through roles in sales, operations, and business area presidency, most recently heading the Compressor Technique division from 2020 to 2024, emphasizing operational efficiency and market expansion.[32] The Group Management team comprises Rego, the presidents of the four core business areas (Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique), and senior vice presidents overseeing finance, human resources, sustainability, and communications, totaling nine members focused on integrating divisional strategies with group-wide priorities.[33] The Board of Directors provides strategic oversight, chaired by Hans Stråberg since 2014, a former Electrolux CEO with expertise in global manufacturing.[34] Composed of 11 voting members—including eight independent directors, the CEO, and two employee representatives—the board emphasizes risk-balanced growth, compliance, and long-term value creation amid industrial and geopolitical challenges.[34] Key members include Johan Forssell of Investor AB, reflecting aligned shareholder interests, and recent additions Karin Rådström (Mercedes-Benz Trucks CEO, elected 2024) for automotive insights and Vagner Rego for internal continuity.[35] Employee representatives ensure operational perspectives, with the board meeting multiple times annually to evaluate performance against financial and sustainability metrics.[34]Organizational Divisions
Atlas Copco Group's operations are organized into four primary business areas—Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique—each comprising multiple specialized divisions that function as the company's highest operational entities.[3][36] These divisions focus on specific product lines, markets, and applications, enabling targeted development, manufacturing, and sales of industrial equipment such as compressors, vacuum pumps, assembly systems, and portable energy solutions.[36] The structure supports a decentralized model, where divisions operate with significant autonomy to address customer needs and market dynamics efficiently, while adhering to group-wide standards for quality and sustainability.[36] Divisions within each business area manage activities through subsidiary product companies, distribution centers, and customer centers, facilitating global reach across over 180 countries.[36] For instance, Compressor Technique includes divisions dedicated to oil-injected and oil-free compressors, as well as gas and process compression systems, emphasizing energy-efficient technologies for industrial applications.[3] Similarly, Vacuum Technique divisions specialize in high-vacuum solutions for semiconductors and scientific research, while Industrial Technique focuses on precision tools and assembly systems for automotive and electronics sectors.[3] Power Technique divisions handle portable compressors, generators, and pumps for construction and mining, with an emphasis on mobile, rugged equipment.[3] This divisional setup, totaling more than 20 units, promotes accountability and innovation by aligning operations closely with end-user requirements.[4] The organizational framework also incorporates central holdings for strategic oversight, group functions for shared services like finance and HR, and service centers for aftermarket support, ensuring cohesive governance without stifling divisional independence.[36] This structure has evolved through strategic realignments, such as the 2017 divestiture of mining equipment to Epiroc, refining focus on core industrial technologies.[4] Recent adaptations include the formation of a new division for industrial flow products in 2025 to enhance capabilities in fluid handling solutions.[37]Business Areas and Operations
Compressor Technique
The Compressor Technique business area develops, manufactures, markets, and services compressed air and gas solutions, including industrial compressors, gas and process compressors, expanders, air and gas treatment equipment, blowers, and air management systems. These offerings support applications in energy-efficient compressed air generation and distribution, with a focus on sustainability and integration of digital technologies such as cloud connectivity, big data analytics, and AI-driven predictive maintenance.[38][39] Stationary industrial air compressors, along with related treatment equipment, piping, and services, comprise approximately 90% of the business area's revenues, while specialized large gas and process compressors account for the remaining 10%. Key product lines include oil-free and oil-injected screw compressors, centrifugal compressors, reciprocating compressors, and turbo expanders, often customized for high-reliability environments like cleanroom production or hazardous process handling. Services emphasize lifecycle support, including energy audits, upgrades, and remote monitoring to optimize operational efficiency and reduce energy consumption.[38][40][41] The division serves diverse customer segments across manufacturing and process industries, such as food and beverage processing, pharmaceuticals, electronics assembly, textiles, wastewater treatment, industrial automation, healthcare facilities, and high-speed rail systems. It also targets energy-intensive sectors including chemicals, petrochemicals, oil and gas, and power generation, with tailored solutions for emerging low-carbon applications like hydrogen compression, liquefied natural gas (LNG) handling, marine propulsion, and hospital air supply systems. Operations leverage a global sales and service network, with manufacturing facilities in multiple regions to ensure localized support and rapid response.[38][41] In fiscal year 2024, Compressor Technique generated revenues of SEK 78.3 billion, marking a 4% increase from the prior year and comprising about 44% of Atlas Copco Group's total sales; orders received reached SEK 79.98 billion, driven by demand in gas and process compressors amid industrial recovery and sustainability initiatives. The segment achieved an operating profit of SEK 19.72 billion, reflecting strong margins from service revenues and cost efficiencies, though exposed to cyclical pressures in industrial output and raw material costs.[42][43]Vacuum Technique
The Vacuum Technique business area develops, manufactures, and markets vacuum pumps, exhaust management systems, valves, abatement solutions, and related services for industrial and scientific applications, operating through a global network of sales companies and service centers.[44] This segment addresses needs in high-vacuum processes critical to sectors such as semiconductors, scientific research, and chemical processing, where reliable vacuum generation enables processes like thin-film deposition and particle acceleration.[45] Formed as a distinct business area on January 1, 2017, it emerged from the Compressor Technique division amid rapid growth in vacuum technologies, driven by acquisitions that expanded product portfolios and market reach.[46] Key products include dry screw vacuum pumps (such as the GHS series with variable speed drive for energy efficiency up to 50% in select applications), oil-sealed rotary vane pumps, liquid ring pumps for corrosive environments, and integrated systems with Industry 4.0-compatible controllers for monitoring and optimization.[47] These offerings support applications ranging from semiconductor fabrication (where Atlas Copco holds nearly half the market for specialized vacuum pumps) to exhaust abatement for reducing emissions in manufacturing.[48] Custom-engineered turnkey vacuum systems are provided for point-of-use or centralized setups, emphasizing modularity and low total cost of ownership through predictive maintenance and remote diagnostics.[49] Strategic acquisitions have bolstered capabilities, including the 2014 purchase of Edwards Group for $1.6 billion, which integrated advanced turbomolecular and dry pumps under the Edwards brand, and the 2016 acquisition of Oerlikon Leybold Vacuum, adding high-vacuum technologies like cryopumps.[50] In August 2025, Atlas Copco acquired a U.S.-based vacuum solutions provider, incorporating it into Edwards Vacuum to enhance abatement and semiconductor offerings.[51] These moves positioned Vacuum Technique as a leader in fast-growing markets, with a focus on innovation in energy-efficient and abatement technologies amid regulatory pressures on industrial emissions.[52] In 2024, the business area generated revenues exceeding 40 billion SEK, reflecting organic growth in semiconductor demand despite cyclical industry fluctuations, with quarterly figures showing sequential increases from 8.8 billion SEK in early periods to over 10.8 billion SEK by year-end.[53] Operations emphasize sustainability through oil-free pumps and abatement systems that minimize environmental impact, aligning with customer requirements for compliant, low-emission vacuum solutions in high-tech manufacturing.[54]Industrial Technique
The Industrial Technique business area of Atlas Copco Group provides industrial power tools, assembly and machine vision solutions, quality assurance products, software, and services to enable precise and efficient manufacturing processes worldwide.[55] It targets sectors including automotive, general manufacturing, aerospace and defense, electronics, energy, appliances, and off-highway vehicles, where demand for advanced assembly technologies drives operations.[55] Core products encompass pneumatic and electric tightening tools, bolting solutions, material removal equipment such as grinders and sanders, joining and dispensing systems for adhesives and self-pierce riveting, and machine vision systems for automated inspection.[56][55] The area focuses on error-proofing, ergonomics, and connectivity, integrating software for real-time data analytics and process optimization in line with Industry 4.0 standards.[57] Innovations include advanced electric tools and automation tailored for electric vehicle assembly and lightweight material processing, maintaining technological leadership and strong market positions.[55] In 2024, the business area recorded revenues of SEK 29.5 billion, up 4% from the prior year, supported by orders in industrial assembly and vision solutions particularly for the automotive industry.[42] Operations leverage a global network of manufacturing facilities and sales organizations, bolstered by strategic acquisitions of complementary technologies to expand capabilities in power tools and quality assurance.[55] Notable brands under this area include Chicago Pneumatic for construction and industrial tools and Desoutter for precision assembly solutions.[57]
Power Technique
The Power Technique business area of Atlas Copco provides portable air, power, and flow solutions, including mobile compressors, generators, light towers, pumps, and energy storage systems, primarily serving construction, industrial, and specialty rental markets. Established on July 17, 2017, through the renaming and restructuring of the former Construction Technique business area, it focuses on equipment that enables on-site productivity in demanding environments such as infrastructure projects, oil and gas operations, and civil engineering.[58][59] The division emphasizes sustainable technologies, including electrification and alternative fuels like hydrotreated vegetable oil (HVO) and hydrogen, to reduce carbon emissions while maintaining reliability for temporary power and air needs.[60] Key products include diesel- and electric-powered mobile compressors, such as the towable (tyre-mounted) XAS series which are painted yellow, feature wheels for mobility, are branded Atlas Copco, and are commonly used in construction in India for powering pneumatic tools, drilling, sandblasting, quarrying, and road maintenance, for applications ranging from general construction to high-pressure boosting for oil exploration, alongside dewatering pumps acquired through expansions like the 2007 purchase of Dynapac and the 2016 acquisition of Varisco. Generators such as the TwinPower series, introduced in 2020, and lithium-ion energy storage solutions under ZenergiZe support backup power and hybrid systems, while light towers and metering pumps address lighting and precise fluid handling in petrochemical and industrial settings. The business area also offers specialty rental services under various brands, providing customized solutions like nitrogen generation and steam supply for short-term projects.[61][60] Innovations such as Variable Speed Drive (VSD) technology, refined over three decades and adapted for portables, enable energy-efficient operation by matching output to demand, contributing to lower fuel consumption and operational costs.[60] Tracing its origins to Atlas Copco's early compressor developments, Power Technique's milestones include the 1905 introduction of the first portable compressor, the 1907 launch of a mobile unit with an internal combustion engine, the 1949 air-cooled diesel model, and the 1958 mobile screw compressor, which improved efficiency over piston designs. Recent advancements feature the 2020 ZenergiZe battery systems and the 2023 release of the world's first battery-electric portable compressor, aligning with global trends toward low-carbon equipment amid rising infrastructure investments.[60][62] The division maintains a leading global position in portable equipment markets, driven by service contracts, equipment connectivity for remote monitoring, and acquisitions like Wangen and LEWA in 2022 to bolster pump technologies for industrial flow.[59][60]Manufacturing and Global Sales Network
Atlas Copco Group operates production facilities in approximately 20 countries, facilitating localized manufacturing of compressors, vacuum equipment, power tools, and related industrial products to enhance supply chain resilience and reduce lead times.[6] A key asset is the Airpower facility in Belgium, acquired in 1956 and expanded over time to become the world's largest compressor manufacturing plant, employing hundreds and supporting global output.[6] These sites emphasize in-house production of critical components, with partnerships for non-core elements, enabling the company to maintain quality control amid varying regional demands.[6] The company's global sales network comprises customer centers in over 70 countries, augmented by authorized distributors and service partners to deliver products, maintenance, and technical support to clients in more than 180 nations.[6] This structure allows adaptation of sales strategies to local markets, with customer centers often integrating sales, service, and application testing functions for industries like manufacturing, mining, and construction.[63] In the United States, for instance, Atlas Copco maintains five regional offices and an extensive distributor network covering sales and aftermarket services nationwide.[64] Recent enhancements include the expansion of a primary distribution center in Hoeselt, Belgium, to streamline logistics for European and international shipments.[65] Geographically, sales revenue is diversified, with approximately 30% derived from Europe and the Middle East, 30% from the United States, and 40% from Asia, reflecting a shift from historical concentrations in Europe toward balanced growth in emerging markets.[6] This distribution underscores the network's evolution through acquisitions, organic expansion, and localization efforts, such as increasing local management in high-growth regions like Asia.[6]Innovations and Research & Development
Key Technological Advancements
Atlas Copco has advanced compressor technology through the development of oil-free screw and centrifugal compressors, which deliver contaminant-free air essential for sensitive applications in industries such as food processing and pharmaceuticals. These systems, featuring water-cooled designs, achieve high energy efficiency with reported savings of up to 30% compared to traditional models.[66] [67] In recent years, the company integrated digital twin technology into its Compressor Technique division, creating virtual replicas of over 250,000 connected machines to optimize design, production, and predictive maintenance. This approach, implemented using tools like Matlab and Simulink, enabled the full digital design of the GA VSD s OIS compressor line, improving control algorithms and operational efficiency through real-time data analysis across prototyping, customization, and service phases.[68] Variable Speed Drive (VSD) technology represents a core innovation across both compressor and vacuum solutions, allowing pumps and compressors to adjust output to real-time demand rather than operating at fixed speeds, thereby reducing energy consumption by matching load requirements precisely. In vacuum applications, this has been applied in dry screw and liquid ring pumps, such as the LRP 700-1000 VSD⁺ series, which minimizes unnecessary vacuum production and supports sustainable operations in sectors like thermoforming and semiconductors.[45] [69] For industrial assembly, Atlas Copco's advancements include Industry 4.0-enabled power tools with 5G connectivity and machine vision systems, facilitating smart factories through real-time quality assurance and automated torque control. These tools integrate software for traceability and error-proofing, enhancing precision in high-volume manufacturing environments.[57] [70]R&D Investment and Patents
Atlas Copco allocates approximately 4% of its annual revenues to research and development activities, a commitment maintained consistently to drive technological innovation across its business areas. In 2024, this investment amounted to 7,065 million Swedish kronor (MSEK), reflecting the company's emphasis on advancing compressor efficiency, vacuum solutions, and industrial assembly tools.[71] This level of spending exceeds that of many peers relative to revenue, enabling Atlas Copco to outpace competitors in absolute R&D terms due to its scale.[72] The R&D workforce comprises over 5,000 engineers, representing about 9% of the group's more than 55,000 employees as of 2024, with dedicated centers focused on areas like sustainable energy systems and digital monitoring technologies.[71] These efforts have historically supported incremental improvements, such as oil-free compressors and ergonomic power tools, contributing to operational efficiencies for customers in mining, manufacturing, and construction. Quarterly R&D expenses, for instance, reached 175.55 million (currency unspecified in source, likely SEK equivalent) in the period ending June 30, 2025, underscoring ongoing investment amid market fluctuations.[73] Atlas Copco protects its innovations through an extensive patent portfolio, with the group holding nearly 2,000 registered patents as of recent assessments, predominantly in positive displacement machines for liquids and related fluid handling technologies.[74] Subsidiaries contribute significantly; for example, Atlas Copco Industrial Technique filed 1,837 patents from 2009 to 2023, while Atlas Copco Rock Drills secured 1,796 in the same period, covering rock drilling rigs and assembly systems.[75][76] These patents reinforce the company's market position by safeguarding proprietary advancements in durability, energy efficiency, and automation, though exact group-wide totals fluctuate with filings and grants annually.Financial Performance
Revenue Growth and Profitability
Atlas Copco Group's revenues reached 177 billion SEK in 2024, marking a 2.4% increase from 2023, driven by a combination of organic growth in core segments like compressors and vacuums, alongside selective acquisitions, though offset by unfavorable currency translations and subdued demand in certain industrial markets.[77] [78] This followed stronger post-pandemic recovery in prior years, with historical compound annual growth rates supported by expansion in emerging markets and aftermarket services, which contribute recurring revenue stability.[79] In 2025, revenue trends moderated, with third-quarter figures at 41.6 billion SEK, reflecting a 1% organic rise but a nominal 3% decline year-over-year due to currency headwinds and softer orders in Europe and Asia.[80] [81] Trailing twelve-month revenues as of Q3 2025 approximated 171.6 billion SEK, indicating a slight contraction from 2024 peaks amid cyclical pressures in manufacturing and construction.[82] Profitability metrics underscore operational efficiency, with 2024 operating profit margins at 21.6%, sustained by high gross margins exceeding 43% from premium, energy-efficient products and a focus on service revenues, which yield higher returns than equipment sales.[83] [84] Net profit margins hovered around 16.1% for the trailing twelve months ending Q3 2025, reflecting disciplined cost management and pricing power despite input cost volatility.[85] Long-term earnings growth averaged 15.8% annually, outpacing the machinery sector's 10.8%, attributable to R&D-driven innovations and a decentralized structure enabling localized adaptability.[79]| Year | Revenue (BSEK) | YoY Growth (%) | Operating Margin (%) | Net Profit Margin (%) |
|---|---|---|---|---|
| 2023 | 173.0 | N/A | ~22.0 | 16.6 |
| 2024 | 177.0 | 2.4 | 21.6 | ~16.0 |
Key Metrics and Market Valuation
As of the third quarter of 2025, Atlas Copco reported trailing twelve-month revenues of approximately SEK 170 billion, reflecting stable organic growth amid mixed global demand.[88] The company's EBITDA for the same period stood at SEK 41.78 billion, underscoring operational efficiency with an implied margin of around 24.5%.[88] Net income available to common shareholders reached SEK 27.59 billion over the trailing twelve months, driven by strong aftermarket services and cost controls despite softer equipment sales in certain segments.[88] For the full year 2024, revenues totaled SEK 176.8 billion, providing a benchmark for ongoing performance.[83] In terms of market valuation, Atlas Copco's market capitalization stood at approximately SEK 816 billion at the end of 2023 and SEK 800 billion at the end of 2024 (intraday values fluctuate), with SEK 796.4 billion as of October 24, 2025, positioning it as one of Europe's largest industrial firms by equity value.[89][88] The trailing price-to-earnings ratio was 29.57, reflecting investor expectations for sustained earnings growth in core businesses like compressors and vacuum solutions, though elevated relative to historical averages due to macroeconomic uncertainties.[88] Enterprise value reached SEK 810.52 billion, with an EV/EBITDA multiple of 17.59, indicating a premium valuation supported by robust free cash flow generation but sensitive to industrial cycle fluctuations.[88] Forward P/E stood at 27.32, suggesting moderate optimism for 2026 profitability.[88]| Key Valuation Metric | Value | Date |
|---|---|---|
| Market Capitalization | SEK 796.4B | October 24, 2025[88] |
| Trailing P/E Ratio | 29.57 | October 24, 2025[88] |
| EV/EBITDA | 17.59 | October 24, 2025[88] |
| Enterprise Value | SEK 810.52B | October 24, 2025[88] |