Atlas Copco Earnings: Robust Order Backlog to Support Earnings in 2024 Despite Softened Order Intake

While market conditions in early 2024 proved mixed for Atlas Copco, the wide-moat capital goods supplier delivered a solid first-quarter result, featuring buoyant top-line and EBIT growth that tracked ahead of our prior full-year forecasts. Organic order intake fell 4% year on year, declining from an exceptional level achieved in the prior comparative period. While demand for air compressor equipment held in, demand for vacuum pump equipment and power tools were particularly weak, driving organic order intake declines for the vacuum technique and power technique segments of 4% and 17%, respectively.