Executive Summary

Atlas Copco AB stands as a premier, diversified industrial conglomerate, distinguished by a high-quality business portfolio and a resilient, service-oriented operating model. This structure underpins its consistently premium profitability and superior returns on capital. The company commands leading market positions globally, particularly within its largest and most profitable Compressor Technique segment and its high-technology Vacuum Technique division. Strategically, Atlas Copco is well-aligned with powerful secular growth trends, including the industrial imperatives for greater energy efficiency, widespread digitalization, and automation. These tailwinds provide a structural growth foundation that complements its cyclical industrial exposures.

However, the company’s strengths are balanced by notable challenges. Its significant presence in cyclical end-markets, especially the semiconductor industry via its Vacuum Technique segment, introduces considerable volatility to its order intake and organic growth profile. Recent performance has been impacted by a downturn in the semiconductor capital expenditure cycle and a broader softening of demand in key geographic markets, most notably China. Furthermore, as a company reporting in Swedish Krona (SEK) with vast international operations, it faces material currency translation headwinds that can obscure underlying operational performance.

The company’s valuation consistently reflects its high-quality attributes, trading at a premium to the broader industrial sector. This premium is warranted by its strong financial track record but offers a limited margin of safety against operational missteps or a more severe-than-anticipated cyclical downturn. The central analytical question for investors is whether Atlas Copco’s formidable competitive moats, disciplined capital allocation, and strategic alignment with long-term growth drivers are sufficient to navigate these cyclical headwinds and justify its premium market valuation over the long term. This report provides a comprehensive, data-driven analysis to address this question.

1. Company Overview & Business Model

Atlas Copco AB is a Swedish industrial group founded in 1873 with a global presence, serving customers in approximately 180 countries.¹ The company’s operations are structured around a decentralized model comprising four distinct business areas, each a leader in its respective niche. This model is designed to foster agility, customer focus, and clear accountability.²

1.1. Breakdown of Business Areas

The Group’s activities are segmented into four specialized business areas, each with a unique product portfolio and end-market focus.

• Compressor Technique: This is Atlas Copco’s largest and most profitable business area. It provides a comprehensive range of compressed air solutions, including industrial compressors, gas and process compressors, expanders, and air and gas treatment equipment.² The division serves a broad spectrum of industries, from general manufacturing to the process and oil & gas sectors.⁵ A key strategic focus of this segment is the development of energy-efficient solutions that provide customers with a lower total cost of ownership.⁴
• Vacuum Technique: This segment is a global leader in vacuum products, exhaust management systems, valves, and related solutions.⁴ It is a critical supplier to high-tech industries, with the semiconductor industry being its primary market. Other key end-markets include chemical processing, food packaging, and scientific research.⁵ The performance of this division is closely linked to the capital expenditure cycles of global semiconductor manufacturers, making it the most cyclical segment within the Group’s portfolio.
• Industrial Technique: This business area provides advanced industrial tools and solutions designed to enhance customer productivity, quality, and flexibility. Its product portfolio includes industrial power tools, assembly systems, and machine vision solutions.² The primary end-markets are the automotive and aerospace industries, where its solutions are integral to modern assembly lines and manufacturing processes.² This segment is a key enabler of industrial automation for its customers.
• Power Technique: This segment provides a range of portable and industrial equipment, including mobile compressors, generators, light towers, and industrial and portable pumps.² These products are essential for infrastructure projects, civil engineering, road construction, and the specialty rental market.⁵ Demand is often tied to construction activity and investment levels at equipment rental companies.

1.2. Segment Revenue Contribution & Profitability

The financial contribution of each segment underscores the central importance of the Compressor Technique business to the Group’s overall performance. This segment consistently delivers the largest share of revenue and the highest operating margin.

For the full year 2023, Compressor Technique generated 44% of Group revenues with an operating margin of 24.5%. Vacuum Technique was the second-largest contributor at 25% of revenues, with a strong margin of 22.4%. Industrial Technique and Power Technique accounted for 16% and 15% of revenues, respectively, with robust margins of 21.7% and 19.3%.⁸ This performance hierarchy was maintained in the first quarter of 2024, where Compressor Technique again led with a 24.8% margin on MSEK 18,710 in revenue.⁹ The consistent margin outperformance of the Compressor Technique segment is not merely a financial artifact but a clear indicator of its superior competitive position, likely stemming from dominant market share, technological leadership, and a deeply entrenched, high-margin service business. In contrast, the lower, though still strong, margin in Power Technique may reflect a more competitive and price-sensitive environment in the construction and rental equipment markets.

Business Area	FY 2023 Revenue (MSEK)	FY 2023 Operating Profit (MSEK)	FY 2023 Operating Margin (%)	Q1 2024 Revenue (MSEK)	Q1 2024 Operating Profit (MSEK)	Q1 2024 Operating Margin (%)
Compressor Technique	75,552	18,510	24.5%	18,710	4,642	24.8%
Vacuum Technique	42,812	9,590	22.4%	9,719	2,119	21.8%
Industrial Technique	28,453	6,176	21.7%	7,514	1,649	21.9%
Power Technique	26,899	5,193	19.3%	7,202	1,393	19.3%
Group Total	172,664	37,091	21.5%	42,875	9,345	21.8%
Source: Atlas Copco Q4 2023 and Q1 2024 Reports.8 Note: Segment operating profit figures are derived from reported revenues and margins.

1.3. Geographic Revenue Distribution

Atlas Copco’s revenue base is geographically well-diversified, though with a significant weighting towards Asia. In fiscal year 2023, Asia/Oceania was the largest region, contributing 37% of total Group revenues. Europe followed at 28%, and North America at 26%, with South America and Africa/Middle East making up the remainder.⁸ This distribution remained broadly similar in the first quarter of 2024.⁹

This heavy reliance on Asian markets, which have been a powerful engine of growth, also represents a significant risk concentration. The region’s industrial health, particularly investment trends in China, has a disproportionate impact on Atlas Copco’s group-level performance. Recent earnings calls have explicitly cited softer demand and persistent uncertainty in the Chinese market as a key headwind, demonstrating the direct link between the region’s economic trajectory and the company’s near-term prospects.¹⁰

1.4. Business Model Characteristics

A cornerstone of Atlas Copco’s business model is the strategic balance between initial equipment sales and a robust, recurring service and aftermarket business. For the 2024 fiscal year, equipment sales constituted approximately 63% of revenues, while the service business accounted for the remaining 37%.¹¹ This service component, which includes spare parts, maintenance, repairs, consumables, and specialty rentals, is critical to the company’s financial profile. It provides a stable and predictable stream of high-margin revenue that helps to mitigate the inherent cyclicality of the capital equipment market.³

The company’s manufacturing philosophy complements this model. Atlas Copco employs an “asset-light” approach, focusing on the in-house production of core, performance-critical components while outsourcing non-critical parts to business partners.¹³ Purchased components represent approximately 75% of the production cost of equipment.¹³ This strategy provides significant operational flexibility, allowing the company to scale production up or down in response to shifts in demand without being burdened by excessive fixed costs.⁵

2. Industry Dynamics & Market Position

Atlas Copco operates within the vast global industrial machinery market, a sector characterized by its cyclical nature, high barriers to entry, and increasing influence from technological and sustainability-focused trends. The company’s performance is intrinsically linked to the health of the global economy and industrial capital expenditure.

2.1. Market Size, Growth, and Cyclicality

The global industrial machinery market is a multi-hundred-billion-dollar industry, with market size estimates for 2023-2024 ranging from approximately $656 billion to $1.2 trillion, depending on the specific scope and methodology of the market study.¹⁴ Forecasted compound annual growth rates (CAGRs) for the sector generally fall within the 4% to 9% range, driven by ongoing industrialization, infrastructure investment, and technological modernization.¹⁴

A key sub-segment is the market for compressed air systems, valued at approximately $26.6 billion in 2024 and projected to grow at a CAGR of around 4.7% through 2033.¹⁷ This market is moderately fragmented but led by a few major international players, including Atlas Copco.¹⁷

The industry is inherently cyclical, with demand for new equipment closely tied to broader economic indicators such as global GDP, industrial production indices, and manufacturing purchasing managers’ indexes (PMIs).¹² Customer investment decisions are sensitive to business conditions, and periods of economic uncertainty often lead to deferred capital expenditures.² This cyclicality is a fundamental characteristic that shapes the financial performance of all participants.

2.2. Key Industry Trends

Several powerful “megatrends” are reshaping the competitive landscape and creating new avenues for growth. Atlas Copco’s strategy is explicitly aligned to capitalize on these structural shifts.

• Energy Efficiency: This has evolved from a secondary consideration to a primary purchasing driver. With industrial energy consumption representing a significant operational cost, and with mounting regulatory pressure to reduce carbon emissions, customers are increasingly prioritizing equipment that minimizes energy usage.¹⁴ Technologies such as Variable Speed Drive (VSD) compressors, which can reduce energy consumption by over 30%, are central to this trend.²⁰ This dynamic can alter traditional replacement cycles; a customer may invest in new, more efficient equipment not for additional capacity, but for the tangible and often rapid return on investment generated by energy savings. This creates a source of demand that is less correlated with the broader industrial capacity utilization cycle, providing a potential counter-cyclical buffer.
• Automation and Digitalization (Industry 4.0): The global manufacturing sector is undergoing a profound transformation toward “smart factories.” This transition fuels demand for intelligent, connected, and automated machinery.¹⁴ The integration of the Industrial Internet of Things (IIoT) enables equipment to provide real-time data on performance, which can be leveraged for remote monitoring, process optimization, and predictive maintenance.²⁰ This shift transforms equipment from a standalone asset into an integrated data node within a customer’s production ecosystem.
• Sustainability: Beyond pure energy efficiency, there is a growing demand for solutions that support broader sustainability goals. This includes oil-free compressors that ensure air purity in sensitive applications like food and beverage, pharmaceuticals, and electronics, as well as equipment that facilitates the circular economy and is manufactured with a reduced environmental footprint.¹⁴

2.3. Atlas Copco’s Market Position and Competitive Moats

Atlas Copco holds a formidable position as a global market leader. In the critical U.S. Air & Gas Compressor Manufacturing industry, the company commands an estimated 20.0% market share.²⁶ Some analyses suggest its compressor division is approximately twice the size of its nearest competitor, Ingersoll Rand, indicating significant scale and market power.⁷

The company’s leadership is protected by significant and durable competitive moats, which create high barriers to entry for potential new competitors.²⁷ These include:

• Technology and R&D Scale: The substantial and continuous investment required to remain at the forefront of compressor, vacuum, and industrial tool technology is a major hurdle for new entrants.
• Brand and Reputation: Decades of performance have built a reputation for quality, reliability, and low total cost of ownership, which allows the company to command premium pricing.²⁹
• Global Sales and Service Network: Perhaps the most powerful moat is the company’s extensive direct sales and service network spanning approximately 180 countries.¹³ This network not only facilitates new equipment sales but also locks in customers through long-term service agreements, creating a sticky and profitable recurring revenue stream that is exceptionally difficult and costly for a new player to replicate.³⁰

The evolution toward digitalization is reinforcing this service network advantage, transforming it into a data-driven moat. With over 120,000 connected compressors globally, generating more than 150 data points per second, Atlas Copco is amassing a vast repository of real-world operational data.³¹ This data can be analyzed to refine predictive maintenance algorithms, enhance product development, and offer data-driven insights to customers, creating a virtuous cycle where each new connected machine strengthens the network’s collective intelligence and value proposition. A competitor without this massive, historical, and real-time dataset would be at a significant disadvantage in developing equally sophisticated and effective digital service offerings.

3. Competitive Analysis

Atlas Copco competes with a range of global and regional players across its four business segments. Its primary competitive advantages are rooted in its technological leadership, extensive global service network, strong brand equity, and a decentralized operational model that fosters agility and innovation.

3.1. Main Competitors by Business Segment

• Compressor Technique & Power Technique: The most direct and significant global competitor in the compressed air market is Ingersoll Rand (NYSE: IR). The modern Ingersoll Rand was formed through the 2020 merger of Gardner Denver with Ingersoll-Rand plc’s industrial segment, creating a formidable competitor in compressors, pumps, and blowers.³² Other notable competitors in this space include the privately-held German company Kaeser Kompressoren and Sullair (a Hitachi Group company).³⁴ In the portable power and generator markets, the company also competes with industrial giants like
  Caterpillar (NYSE: CAT) and Cummins (NYSE: CMI).³⁶
• Vacuum Technique: This high-tech segment competes with specialized vacuum technology providers. Key rivals include German-based firms Pfeiffer Vacuum (part of the Busch Group) and Busch Vacuum Solutions.³⁷ It is important to note that one of the leading brands in this segment, Edwards, is owned by Atlas Copco.⁵
• Industrial Technique: In the market for industrial power tools, assembly systems, and quality assurance solutions, Atlas Copco competes with a diverse set of companies. Major competitors include Stanley Black & Decker (NYSE: SWK) and the highly diversified industrial manufacturer Illinois Tool Works (NYSE: ITW).⁴⁰
• Power Technique (Pumps): Within its industrial and portable pump product lines, the company competes with specialized fluid handling companies such as the Swiss-based Sulzer AG (SWX: SUN).⁴²

3.2. Competitive Advantages and Differentiators

Atlas Copco’s market leadership is sustained by several key strategic differentiators:

• Technological Leadership: The company consistently invests approximately 4% of its revenue into research and development, focusing on innovations that deliver tangible benefits to customers, such as enhanced energy efficiency, lower lifecycle costs, and increased productivity.¹³ Its pioneering work in VSD compressors and its suite of smart, connected solutions like the Elektronikon® controller and SMARTLINK monitoring platform are prime examples of this technological edge.²⁹
• Global Direct Service Network: The company’s vast global footprint, with a presence in around 180 countries, is a cornerstone of its strategy.¹³ Unlike competitors who may rely more heavily on third-party distributors, Atlas Copco’s direct service model allows it to build close, long-term customer relationships. This structure not only drives sales of new equipment but, more critically, captures a significant and highly profitable stream of recurring aftermarket revenue from parts and service.¹²
• Premium Brand Positioning: The Atlas Copco brand is synonymous with high-quality, reliable, and durable equipment. This reputation allows the company to compete on total cost of ownership rather than just upfront price, supporting its premium market positioning and strong margins.⁶
• Decentralized and Agile Operating Model: The Group’s structure, comprising around 23 autonomous divisions, empowers local management teams to respond quickly and effectively to market-specific conditions and customer needs. This decentralized, entrepreneurial culture is a key enabler of the company’s sustained innovation and operational excellence.² This model extends to its M&A strategy, where divisions are tasked with identifying synergistic, bolt-on acquisition targets. This bottom-up approach ensures that acquisitions are driven by deep market and technical expertise, rather than a purely financial, top-down directive, likely contributing to a higher success rate of integration and value creation.⁴

3.3. Peer Financial Comparison

A comparison of operating margins reveals Atlas Copco’s strong profitability relative to its peers. For the full year 2023, Atlas Copco’s Group operating margin was 21.5%.⁸ This compares favorably to competitors like Ingersoll Rand, whose Industrial Technologies & Services segment reported an adjusted EBITDA margin of 28.2% for 2023, and ITW, which reported a consolidated operating margin of 25.1%.⁴⁴ While direct comparisons must be made with caution due to differences in accounting (EBIT vs. EBITDA) and business mix, it is clear that Atlas Copco operates in the top tier of industrial profitability.

This premium margin profile is a testament to the company’s strong competitive moats. However, it also represents a potential point of vulnerability. The company’s value proposition is built on superior quality and long-term value, which supports its premium pricing. In a severe or prolonged economic downturn, capital-constrained customers may prioritize lower upfront costs, potentially shifting demand toward “good enough” competitors. This could exert pressure on Atlas Copco’s pricing power and market share, challenging its ability to maintain its margin advantage.

4. Financial Performance & Capital Allocation

Atlas Copco has demonstrated a consistent and impressive track record of profitable growth, strong cash flow generation, and disciplined capital allocation. The company’s financial performance reflects the strength of its business model and its leading market positions.

4.1. Revenue and Profitability Trends (2019-2023)

Over the past five years, Atlas Copco has delivered robust top-line growth. Group revenues expanded from SEK 103.8 billion in 2019 to SEK 172.7 billion in 2023, representing a compound annual growth rate (CAGR) of approximately 13.5%.⁴⁶ This growth has been fueled by a combination of organic expansion, strategic acquisitions, and favorable pricing.

The company’s profitability has been both high and remarkably stable. The operating (EBIT) margin has consistently remained in a tight and elevated range, standing at 21.1% in 2019 and 21.5% in 2023, demonstrating resilience through the economic disruptions of the COVID-19 pandemic and subsequent inflationary pressures.⁴⁶

Perhaps the most telling indicator of the company’s quality and management’s effectiveness is its return on capital. Return on Capital Employed (ROCE) has been consistently strong, recorded at 30% in 2019 and 29% in 2023 (note: the 2023 Q4 report states 30%).⁴⁷ Similarly, Return on Invested Capital (ROIC) has been exceptional, peaking at 24.7% in 2023.⁴⁹ The ability to consistently generate returns on capital far in excess of its weighted average cost of capital (WACC), which the company benchmarks at 8.0% ⁹, is the fundamental driver of long-term economic value creation and a clear testament to a superior business model and disciplined capital management.

Metric	2019	2020	2021	2022	2023
Revenue (MSEK)	103,756	99,787	110,912	141,325	172,664
Operating Profit (MSEK)	21,897	19,146	23,559	30,216	37,091
Operating Margin (%)	21.1%	19.2%	21.2%	21.4%	21.5%
Net Income (MSEK)	16,543	14,783	18,134	23,482	28,052
EPS (SEK, Basic)	3.40	3.04	3.72	4.82	5.76
Return on Capital Employed (%)	30%	23%	26%	29%	30%
Source: Atlas Copco Annual Reports 2022 & 2023.2 EPS figures are adjusted for share splits.

4.2. Cash Flow Generation and Balance Sheet Strength

Atlas Copco is a strong generator of cash. For the full year 2023, operating cash flow was a robust MSEK 23,192.⁴⁶ While the company’s strong cash generation is a clear strength, analysis of free cash flow must account for the periodic and sometimes substantial cash outflows for acquisitions. A single large acquisition can depress reported free cash flow in a given year, masking the underlying cash-generating power of the core operations. Therefore, assessing cash flow trends over a multi-year period provides a more accurate picture of the company’s ability to fund its growth initiatives and shareholder returns.

The company maintains a strong and flexible balance sheet. As of the end of the third quarter of 2023, net indebtedness stood at MSEK 25,293, resulting in a conservative Net Debt/EBITDA ratio of 0.6.⁴⁷ This low level of leverage provides substantial capacity to fund future acquisitions, invest in organic growth, and withstand economic downturns without financial distress.

4.3. Capital Allocation Strategy

Management has demonstrated a clear and disciplined capital allocation framework, balancing reinvestment in the business with returns to shareholders.

Capital Allocation (MSEK)	2019	2020	2021	2022	2023
Capital Expenditures	2,900	2,500	2,900	4,548	5,803
Acquisitions (Consideration)	9	1,171	3,777	12,123	4,472
Dividends Paid	-8,811	-8,878	-9,277	-11,203	-13,638
Net Share Repurchases / Sales	-1,000	-1,000	-1,000	-483	265
Source: Atlas Copco Annual Report 2023.46 Note: Dividend figure for 2023 is the proposed amount.

• Capital Expenditures (CapEx): Reflecting its asset-light manufacturing model, CapEx needs are moderate. Investments have been directed toward expanding production capacity in key growth markets like China and India and enhancing innovation capabilities.⁴⁶
• Acquisitions: M&A is a core pillar of the growth strategy. The company has a consistent track record of deploying capital on bolt-on acquisitions to enhance its technological capabilities and market reach. The significant outlay in 2022 demonstrates management’s willingness to execute larger transactions when the right opportunity arises.⁴⁶
• Dividends: The company adheres to a shareholder-friendly dividend policy, aiming to distribute approximately 50% of its earnings. The proposed dividend for 2023 of SEK 2.80 per share represents a payout ratio of 48.6% and continues a trend of growing distributions.⁸
• Share Repurchases: Share buybacks are primarily used to offset dilution from the company’s long-term employee incentive programs rather than as a primary tool for capital return.⁴⁶

5. Growth Drivers & Strategic Initiatives

Atlas Copco’s long-term growth strategy is multifaceted, combining organic initiatives rooted in innovation and service with a disciplined acquisition program. The strategy is designed to capitalize on structural industry trends while expanding the company’s market leadership.

5.1. Organic Growth Levers

Organic growth is driven by a continuous focus on innovation, expanding the high-margin service business, and increasing penetration in key geographic markets.

• Innovation and New Product Development: A cornerstone of the strategy is the consistent introduction of new and improved products. The company’s R&D efforts, which amount to approximately 4% of revenue, are focused on developing solutions that enhance customer productivity, improve energy efficiency, and lower the total cost of ownership.¹³ Recent examples include a new generation of highly efficient oil-free screw compressors and new products under the Chicago Pneumatic brand.¹⁰
• Service Business Expansion: A key strategic priority is to increase the service penetration of its vast installed base of equipment.¹¹ By offering comprehensive service contracts, spare parts, and remote monitoring, Atlas Copco not only generates a stable, high-margin revenue stream but also deepens its customer relationships, creating a virtuous cycle of loyalty and repeat business.
• Geographic Penetration: The company continues to see significant growth opportunities in emerging markets, where ongoing industrialization and infrastructure development are expected to drive long-term demand for its products and services.³¹

5.2. Digital Transformation and Connectivity

Atlas Copco is actively leveraging digitalization to enhance its value proposition. The company is at the forefront of the “smart factory” trend, with over 120,000 connected compressors in the field.³¹ These IoT-enabled machines provide a continuous stream of operational data, which is analyzed through platforms like SMARTLINK.⁴³ This allows both Atlas Copco and its customers to monitor equipment health in real-time, optimize performance, and implement predictive maintenance strategies to maximize uptime and efficiency. This connectivity transforms the company from a simple equipment provider into a long-term productivity partner.

5.3. Sustainability as a Business Driver

The company’s strategic focus on sustainability is a core business driver, not merely a corporate responsibility initiative. The global push for decarbonization and energy efficiency creates a powerful tailwind for Atlas Copco’s most advanced products.³⁰ As energy costs rise and environmental regulations tighten, the business case for investing in highly efficient equipment becomes more compelling for customers.¹² This trend directly supports demand for the company’s premium, energy-saving solutions. Furthermore, the transition to a low-carbon economy, including the production of electric vehicles, batteries, and solar panels, creates new and growing end-markets for the company’s specialized compressor and vacuum solutions.¹²

This dynamic creates a self-reinforcing growth cycle. External pressure for sustainability drives demand for Atlas Copco’s innovative, energy-efficient products. The sale of these products expands the installed base, which in turn feeds the high-margin service business. The strong cash flow generated from services is then reinvested into R&D to develop the next generation of sustainable technologies, further strengthening the company’s technological leadership and market position.

5.4. Disciplined Acquisition Strategy

Acquisitions are an integral and continuous part of Atlas Copco’s growth model. The company has a long and successful history of acquiring and integrating businesses, with 185 acquisitions completed in the two decades leading up to 2021.⁴ The strategy is highly disciplined, focusing on smaller, bolt-on acquisitions of companies that are in or very close to Atlas Copco’s existing core businesses.³ This approach allows the company to acquire new technologies, gain access to new market niches, or expand its service capabilities. In 2023, the company completed 17 acquisitions across its four business areas, targeting technologies such as medical gas systems, industrial vacuum, and machine vision.⁴⁶ This decentralized approach to M&A also serves as a form of low-risk market intelligence, allowing the company to gain a foothold in emerging technologies and adjacent markets without the significant risk and expense of purely organic development.

6. Recent Challenges & Industry Headwinds (2022-2024)

The period from 2022 to 2024 has been characterized by a complex and challenging macroeconomic environment. Atlas Copco, despite its strong market position, has not been immune to these headwinds. The company’s performance has been shaped by supply chain pressures, shifting demand dynamics in key markets, and significant currency fluctuations.

6.1. Supply Chain and Inflationary Pressures

Following the global pandemic, the industrial sector faced widespread supply chain disruptions and significant input cost inflation.² Atlas Copco’s 2023 annual report acknowledged that these challenges persisted, although the company was successful in normalizing its lead times over the course of the year.⁴⁶ The company’s ability to maintain and even expand its operating margins during this period is a testament to its operational resilience and, critically, its strong pricing power, which allowed it to effectively pass on increased costs to its customers.

6.2. China Market Dynamics and Semiconductor Downturn

Two of the most significant headwinds have been the economic slowdown in China and the cyclical downturn in the semiconductor industry.

• China: Weaker demand and persistent economic uncertainty in China have negatively impacted performance, particularly in segments with high exposure to the region’s industrial investment, such as vacuum equipment for the battery, solar, and EV sectors.¹⁰
• Semiconductors: The Vacuum Technique business is heavily exposed to the highly cyclical semiconductor market.⁷ In 2023, this market entered a sharp downturn, with major chip manufacturers significantly reducing their capital expenditures. This had a direct and severe impact on Atlas Copco, with the 2023 annual report noting that the market for vacuum equipment “weakened significantly,” leading to a 20% organic decline in orders for the segment.⁴⁶ This exposure is a double-edged sword: while it provides access to a long-term structural growth driver, it also introduces significant short-term volatility that can act as a major drag on the Group’s overall organic growth during downcycles.

6.3. Shifting End-Market Demand and Geopolitical Factors

Demand across other end-markets has been mixed. While areas related to the energy transition and automotive electrification have shown strength ⁴⁶, others have softened. For example, in Q1 2024, the Power Technique segment was impacted by lower investment from equipment rental companies in North America.⁹

Geopolitically, the company has noted an increasingly “polarized” global environment.⁴⁶ While its direct financial exposure to the conflict in Ukraine is minimal, the broader uncertainty has an impact on global business sentiment. More tangibly, currency fluctuations have been a significant headwind. As a company reporting in SEK, the relative strength of other major currencies can materially affect its reported financial results. Recent earnings calls have highlighted “strong currency headwind” as a negative factor for both reported revenues and profits.⁵¹

The challenges of this period also underscore the strategic benefit of Atlas Copco’s diversified business model. The severe downturn in the Vacuum Technique segment in 2023 was offset by continued strength in other areas, such as the demand for large industrial compressors driven by energy transition projects, and the consistent 16% growth of the service business.⁴⁶ This diversification across different end-markets, technologies, and revenue types (equipment vs. service) is a critical risk-mitigating feature of the company’s structure.

7. Management & Corporate Governance

The quality and stability of Atlas Copco’s leadership team, combined with a well-defined governance structure, are key pillars supporting the company’s long-term strategic execution and consistent financial performance.

7.1. Leadership Team and Track Record

Atlas Copco’s Group Management is composed of seasoned executives with deep industry and company-specific experience. In May 2024, Vagner Rego assumed the role of President and CEO, succeeding Mats Rahmström.⁵² Mr. Rego is a long-tenured employee, having previously served as the President of the Compressor Technique business area, the company’s largest and most important segment.⁴⁶

This transition is emblematic of the company’s strong “promote from within” culture. An examination of the executive team’s biographies reveals that nearly all senior leaders, including the heads of the four business areas, have spent the majority of their careers at Atlas Copco, rising through various roles in different divisions and geographic regions.⁴⁶ This practice ensures a deep institutional understanding of the company’s unique decentralized operating model, its core technologies, and its customer-centric culture. This internal talent pipeline is a significant, albeit intangible, strategic asset that fosters leadership continuity and reduces the execution risk often associated with external senior hires.

7.2. Corporate Governance and Shareholder Policies

Atlas Copco’s corporate governance framework is designed to support its decentralized business model while ensuring long-term, sustainable growth.⁵³ The Board of Directors has overall responsibility for the organization, with dedicated committees (Audit, Remuneration, Nomination) overseeing key functions.⁵³

The company’s policies reflect a strong alignment with shareholder interests. Management has demonstrated a highly disciplined approach to capital allocation, evidenced by the company’s consistently high returns on capital.⁴ Furthermore, Atlas Copco maintains a clear and shareholder-friendly dividend policy, with a stated ambition to distribute approximately 50% of its earnings to shareholders, a target it has consistently met or exceeded.⁴⁶

7.3. Operational Execution and Transparency

The management team has an established track record of strong operational execution. This is most evident in the company’s ability to maintain high and stable profitability through various economic cycles and in the face of significant headwinds like inflation and supply chain disruptions.² The company’s communication with the investment community is transparent and detailed, with quarterly reports, presentations, and webcasts that provide clear segmentation of financial results and a candid assessment of market conditions and the near-term outlook.³

8. Valuation Analysis

Atlas Copco’s valuation consistently reflects its status as a high-quality industrial leader. The company typically trades at a premium to the broader industrial sector, a valuation supported by its superior profitability, high returns on capital, and resilient business model. However, this premium also implies high market expectations for future performance.

8.1. Current and Historical Trading Multiples

An analysis of Atlas Copco’s valuation multiples over the past five years shows a consistent premium valuation.

• Price-to-Earnings (P/E) Ratio: As of mid-2025, the stock’s trailing twelve-month (TTM) P/E ratio has been in the range of 25x to 28x.⁵⁵ This is in line with its recent history, with the P/E ratio at the end of 2023 standing at 26.0.⁵⁷
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The TTM EV/EBITDA multiple has recently traded in the 16.5x to 18.0x range.⁵⁸ This represents a moderation from the peak of 27.1x seen in 2021 but remains elevated for an industrial company. The multiple at the end of fiscal 2023 was 20.1x.⁵⁸
• Dividend Yield: Based on the proposed 2023 dividend, the forward dividend yield is approximately 2.0%.⁶⁰

8.2. Peer Group Valuation Comparison

When compared to other high-quality, diversified industrial peers, Atlas Copco’s valuation appears to be in a similar premium tier.

Company	Ticker	TTM P/E Ratio	TTM EV/EBITDA Ratio	Dividend Yield (%)
Atlas Copco AB	ATCO-B.ST	~25.1x	~15.7x	~2.3%
Ingersoll Rand Inc.	IR	~61.2x	~17.8x	~0.1%
Illinois Tool Works Inc.	ITW	~22.8x	~18.7x	~2.3%
Source: Data compiled from multiple sources as of mid-2025.55 P/E ratios can be volatile and subject to one-time items; Ingersoll Rand’s P/E appears particularly high in recent periods.

The comparison indicates that while Ingersoll Rand’s P/E multiple appears elevated and potentially skewed by recent events, Atlas Copco and ITW trade in a comparable valuation range on an EV/EBITDA basis. This suggests that the market groups these companies as high-quality industrials deserving of a premium valuation.

8.3. Valuation Considerations

The premium valuation at which Atlas Copco consistently trades is a direct reflection of its superior business quality. Its best-in-class profitability, exceptionally high returns on capital, and the stability afforded by its large service business justify a higher multiple than the average industrial company.

However, this valuation leaves little room for error. The market appears to be pricing in continued strong operational execution and a successful navigation of current cyclical headwinds. Any significant deviation from these expectations—whether from an operational misstep, a more severe-than-anticipated downturn in key markets like semiconductors, or a failure to maintain pricing power—could lead to a de-rating of the stock’s valuation multiples. An investor must therefore weigh the company’s proven quality against a valuation that offers a limited margin of safety.

Given the diverse nature of its four segments, each with different growth profiles and cyclicality, a sum-of-the-parts (SOTP) valuation framework is a relevant consideration. The high-growth, high-margin Vacuum Technique segment, for example, could justifiably command a higher multiple than the more mature and cyclical Power Technique business.

9. Risk Assessment

A comprehensive investment analysis requires a thorough assessment of the key risks that could adversely affect Atlas Copco’s operations, financial performance, and market valuation. These risks span market cyclicality, geographic concentration, competitive pressures, and operational challenges.

9.1. Market and Cyclical Risks

• End-Market Concentration: The most acute cyclical risk stems from the Vacuum Technique segment’s heavy dependence on the semiconductor industry. This market is characterized by pronounced capital expenditure cycles, and as demonstrated in 2023, a downturn can lead to a sharp and significant decline in orders, acting as a major drag on the Group’s overall organic growth.⁷
• General Economic Cyclicality: As a manufacturer of capital goods, Atlas Copco’s equipment sales are fundamentally linked to the health of the global economy and industrial investment cycles. A widespread economic recession would inevitably lead to reduced demand across all four business areas.²

9.2. Geographic and Currency Risks

• Geographic Concentration: With Asia, and particularly China, representing the largest geographic segment, the company is highly exposed to the region’s economic performance and geopolitical landscape. A protracted slowdown in Chinese industrial activity presents a material risk to the Group’s growth prospects.⁸
• Currency Fluctuations: Atlas Copco reports its financials in Swedish Krona (SEK) but generates the majority of its revenue in other currencies, such as the U.S. dollar and the euro. This creates two primary currency risks.² First,
  translation risk affects the reported value of foreign earnings when converted back to SEK. Second, transaction risk can impact operating margins. A strengthening SEK can compress reported margins, as foreign-currency revenues translate into fewer SEK while a portion of the cost base may remain fixed in SEK or other currencies. This financial dynamic can impact profitability independent of underlying operational performance.⁵¹

9.3. Competitive and Operational Risks

• Competitive Pressure: While Atlas Copco is a market leader, it faces strong competition in all its segments. In an economic downturn, increased price competition could erode the company’s premium margins.²
• Technology Disruption: The long-term risk of a competitor developing a disruptive new technology that renders existing products obsolete is ever-present. This necessitates the company’s continuous and significant investment in R&D to maintain its technological edge.²⁰
• Supply Chain and Input Costs: The company’s global and asset-light manufacturing model relies on a complex network of external suppliers. Disruptions to this supply chain, as seen in the post-pandemic era, can impact production schedules and increase costs.²

9.4. Regulatory and Environmental Risks

Atlas Copco’s global operations subject it to a wide array of legal and regulatory frameworks. This includes compliance with environmental regulations, trade sanctions, and anti-corruption laws.² While increasing environmental standards also represent a significant business opportunity for its energy-efficient products, non-compliance could result in fines and reputational damage.

10. Key Questions to Address

This final section synthesizes the preceding analysis to provide direct answers to the core strategic questions surrounding an investment in Atlas Copco.

• How sustainable are Atlas Copco’s premium margins?
  The company’s premium margins appear highly sustainable, underpinned by powerful and durable competitive moats. These include technological leadership, particularly in energy efficiency; a vast, high-margin, and sticky aftermarket service business that accounts for over a third of revenue; strong brand equity that supports premium pricing; and an agile, decentralized operating model. While margins will face pressure during severe cyclical downturns and can be impacted by adverse currency movements, the structural advantages supporting them are formidable and deeply entrenched.
• What is the company’s exposure to structural vs. cyclical growth trends?
  Atlas Copco is exposed to a blend of both. Its fortunes are cyclically tied to global industrial production, construction activity, and, most acutely, the semiconductor capital expenditure cycle. However, the company is also exceptionally well-positioned to benefit from powerful secular (structural) growth trends. The global imperative for energy efficiency, the widespread adoption of industrial automation and digitalization (Industry 4.0), and the manufacturing requirements of the green energy transition (e.g., EV batteries, solar panels) create long-term tailwinds for its core products. The central investment thesis rests on the conviction that these structural drivers will, over the long term, more than compensate for the inherent cyclical volatility.
• How effectively has management navigated recent industry challenges?
  Management has demonstrated strong operational discipline and execution in navigating the challenges of the 2022-2024 period. The company successfully managed significant supply chain disruptions and input cost inflation, leveraging its pricing power to protect and even expand margins. The decentralized model has allowed for agility in a mixed-demand environment. However, the company has not been immune to market-specific downturns, as evidenced by the sharp contraction in the Vacuum Technique segment due to the semiconductor slump.
• What is the long-term growth potential of each business segment?

• Compressor Technique: Poised for moderate but stable long-term growth, driven by general industrial expansion in emerging markets and a continuous replacement cycle in mature markets fueled by the demand for more energy-efficient models.
• Vacuum Technique: Offers the highest long-term growth potential, directly linked to the expansion of the semiconductor and high-tech industries. This growth will be the most volatile of the four segments.
• Industrial Technique: Has solid growth potential, driven by the structural trends of industrial automation and the major investments in the automotive industry’s transition to electric vehicles.
• Power Technique: Likely to exhibit lower, more cyclical growth tied to public and private investment in construction and infrastructure, as well as the health of the equipment rental market.

• How does the current valuation reflect the company’s quality and growth prospects?
  The current valuation is high and fully reflects Atlas Copco’s status as a best-in-class industrial company. The premium multiples (P/E and EV/EBITDA) relative to the broader market are justified by its superior profitability, high returns on capital, and strong growth prospects. However, this valuation assumes a high degree of continued operational excellence and successful navigation of market cycles, offering little margin of safety for potential underperformance.
• What are the key catalysts that could drive outperformance or underperformance?

• Potential Catalysts for Outperformance: A faster-than-expected and sharp cyclical recovery in the semiconductor market; the launch of a disruptive new product technology that significantly accelerates the energy-efficiency replacement cycle; or the announcement of a large, strategically compelling, and value-accretive acquisition.
• Potential Catalysts for Underperformance: A deep and prolonged global recession that significantly impacts industrial capital spending; a sharp and sustained appreciation of the Swedish Krona, which would create significant margin and earnings headwinds; evidence of market share loss to a key competitor; or a major operational failure or a poorly executed large acquisition that damages the company’s track record of disciplined capital allocation.

Works cited

1. Atlas Copco Group – AnnualReports.com, accessed August 23, 2025, https://www.annualreports.com/Company/atlas-copco-group
2. Atlas Copco Annual report 2022 – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/content/dam/atlas-copco/group/documents/investors/financial-publications/english/20230322-annual-report-incl-sustainability-report-and-corporate-governance-report-2022.pdf
3. Investors – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/en/investors
4. Atlas Copco Group (ATCO) Investor Relations Material – Quartr, accessed August 23, 2025, https://quartr.com/companies/atlas-copco-group_4769
5. Atlas Copco – Wikipedia, accessed August 23, 2025, https://en.wikipedia.org/wiki/Atlas_Copco
6. Compressed Air and Gas Products, Parts, and Service – Atlas Copco, accessed August 23, 2025, https://www.atlascopco.com/en-us/compressors
7. Atlas Copco Earnings: Despite Continued Weak End Markets, Atlas Reaches Record Revenues | Morningstar, accessed August 23, 2025, https://www.morningstar.com/stocks/atlas-copco-earnings-despite-continued-weak-end-markets-atlas-reaches-record-revenues
8. 20240125 Quarterly Report Q4 2023 – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/content/dam/atlas-copco/group/documents/investors/financial-publications/english/20240125-en-q4-2023-js.pdf.coredownload.pdf
9. 20240424 Quarterly Report Q1 2024 – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/content/dam/atlas-copco/group/documents/investors/financial-publications/english/20240424-en-q1-2024-ej.pdf.coredownload.pdf
10. Earnings call: Atlas Copco Q1 reports solid profit, faces China headwinds – Investing.com, accessed August 23, 2025, https://www.investing.com/news/stock-market-news/earnings-call-atlas-copco-q1-reports-solid-profit-faces-china-headwinds-93CH-3395915
11. Reports and presentations – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/en/investors/reports-and-presentations
12. Atlas Copco: Leading Through Strategic Acquisitions and Innovation – Old Mutual, accessed August 23, 2025, https://www.oldmutual.co.za/om-docs/blt5109dc83c6b1aa97/Atlas_Copco_Nadine_Chetty_Khan.pdf
13. How we do business – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/en/investors/atlas-copco-group-for-investors/how-we-do-business
14. Industrial Machinery Market Size, Share & Forecast to 2030, accessed August 23, 2025, https://www.researchandmarkets.com/report/industrial-machinery
15. Industrial Machinery Market Size, Share and Forecasts to 2033, accessed August 23, 2025, https://www.sphericalinsights.com/reports/industrial-machinery-market
16. Industrial Machinery Market Size, Forecasts Report 2025-2034, accessed August 23, 2025, https://www.gminsights.com/industry-analysis/industrial-machinery-market
17. Air Compressor Market Size & Share | Industry Report, 2033 – Grand View Research, accessed August 23, 2025, https://www.grandviewresearch.com/industry-analysis/air-compressor-market
18. Energy Efficiency and Machine Life in Manufacturing – Oxmaint, accessed August 23, 2025, https://oxmaint.com/blog/post/energy-efficiency-and-machine-life-in-manufacturing
19. Industrial Energy Efficiency Market Size, Forecast, 2032, accessed August 23, 2025, https://www.coherentmarketinsights.com/industry-reports/industrial-energy-efficiency-market
20. Compressed Air in 2025: What You Need to Know – Focus Industrial, accessed August 23, 2025, https://www.focusindustrial.com.au/compressed-air-outlook-2025/
21. Latest Trends and Technologies in Air Compressors – Btali International, accessed August 23, 2025, https://btaliinternational.com/latest-trends-and-technologies-in-air-compressors/
22. Industrial Automation Market Size, Share | Growth Report [2029] – Fortune Business Insights, accessed August 23, 2025, https://www.fortunebusinessinsights.com/industry-reports/industrial-automation-market-101589
23. Industrial Control & Factory Automation Market Size, Share and Trends – MarketsandMarkets, accessed August 23, 2025, https://www.marketsandmarkets.com/Market-Reports/factory-industrial-automation-sme-smb-market-541.html
24. What Is Digitization in Manufacturing? – PTC, accessed August 23, 2025, https://www.ptc.com/en/technologies/augmented-reality/solutions-for-manufacturing/digitization-in-manufacturing
25. What is Digitization in Manufacturing and Why is It Important? – Augmentir, accessed August 23, 2025, https://www.augmentir.com/glossary/what-digitization-manufacturing
26. Atlas Copco Ab – Company Profile Report | IBISWorld, accessed August 23, 2025, https://www.ibisworld.com/united-states/company/atlas-copco-ab/407136/
27. (PDF) Barriers to entry in industrial markets – ResearchGate, accessed August 23, 2025, https://www.researchgate.net/publication/235266042_Barriers_to_entry_in_industrial_markets
28. Barriers to Entry – Types of Barriers to Markets & How They Work – Corporate Finance Institute, accessed August 23, 2025, https://corporatefinanceinstitute.com/resources/economics/barriers-to-entry/
29. Atlas Copco compressors offer several significant advantages over the competition., accessed August 23, 2025, https://aircompressors-parts.com/atlas-copco-compressors-offer-several-significant-advantages-over-the-competition/
30. About Atlas Copco, accessed August 23, 2025, https://www.atlascopco.com/en-us/about-atlas-copco
31. Industry, technology, innovation and new markets – Atlas Copco in the next 100 years, accessed August 23, 2025, https://www.atlascopco.com/en-uk/about-atlas-copco/atlas-copco-in-the-uk/atlas-copco-in-the-next-100-years
32. Gardner Denver to Combine with Ingersoll Rand’s Industrial Segment, Creating a Global Leader in Mission-Critical Flow Creation & Industrial Technologies – Investors, accessed August 23, 2025, https://investors.tranetechnologies.com/news-and-events/news-releases/news-release-details/2019/Gardner-Denver-to-Combine-with-Ingersoll-Rands-Industrial-Segment-Creating-a-Global-Leader-in-Mission-Critical-Flow-Creation–Industrial-Technologies/default.aspx
33. Gardner Denver and Ingersoll Rand Industrial Segment Finalize Merger to Form a Global Leader in Mission-Critical Flow Creation and Industrial Technologies – Investor Relations, accessed August 23, 2025, https://investors.irco.com/news/news-details/2020/Gardner-Denver-and-Ingersoll-Rand-Industrial-Segment-Finalize-Merger-to-Form-a-Global-Leader-in-Mission-Critical-Flow-Creation-and-Industrial-Technologies/default.aspx
34. Stationary Air Compressor Market Size | Industry Report 2033 – Grand View Research, accessed August 23, 2025, https://www.grandviewresearch.com/industry-analysis/stationary-air-compressor-market-report
35. Atlas Copco Competitors | Comparably, accessed August 23, 2025, https://www.comparably.com/companies/atlas-copco/competitors
36. Portable Air Compressors Market Size, Share, Forecast Report – Arizton Advisory & Intelligence, accessed August 23, 2025, https://www.arizton.com/market-reports/portable-air-compressor-market
37. About Pfeiffer Vacuum+Fab Solutions, accessed August 23, 2025, https://www.pfeiffer-vacuum.com/us/en/company/about-pfeiffer/
38. Pfeiffer Vacuum – Home, accessed August 23, 2025, https://ir.pfeiffer-vacuum.com/English/home/default.aspx
39. Busch Career | Busch United States, accessed August 23, 2025, https://www.buschvacuum.com/us/en/company/career/
40. ATLPF Atlas Copco AB (publ) Peers & Competitors – Seeking Alpha, accessed August 23, 2025, https://seekingalpha.com/symbol/ATLPF/peers/comparison
41. Atlas Copco (ATLKY) Stock Competitors & Similar Stocks – TipRanks.com, accessed August 23, 2025, https://www.tipranks.com/stocks/atlky/similar-stocks
42. Investor Relations | Sulzer, accessed August 23, 2025, https://www.sulzer.com/en/about-us/investor-relations
43. Atlas Copco compressors: our digital transformation strategies, accessed August 23, 2025, https://www.atlascopco.com/en-us/compressors/digital-transformation
44. ingersoll-rand-2023-annual-report.pdf, accessed August 23, 2025, https://s23.q4cdn.com/965037804/files/doc_financials/2023/ar/ingersoll-rand-2023-annual-report.pdf
45. Illinois Tool Works Inc. – ITW Reports Fourth Quarter and Full Year 2023 Results, accessed August 23, 2025, https://investor.itw.com/news-and-events/news/news-details/2024/ITW-Reports-Fourth-Quarter-and-Full-Year-2023-Results/default.aspx
46. Annual Report 2023 – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/content/dam/atlas-copco/group/documents/investors/financial-publications/english/20240321-copy-of-the-official-annual-report-in-ESEF-format-incl-sustainability-report-and-corporate-governance-report-2023.pdf
47. 20231025 Quarterly Report Q3 2023 – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/content/dam/atlas-copco/group/documents/investors/financial-publications/english/20231025-en-q3-2023-ri.pdf.coredownload.pdf
48. Annual report incl. sustainability report and corporate governance report 2019 – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/content/dam/atlas-copco/group/documents/investors/corporate-governance/annual-general-meeting/2020/annual-report-incl-sustainability-report-and-corporate-governance-report-2019.pdf.coredownload.pdf
49. Return on Invested Capital For Atlas Copco AB (ATLK.Y) – Finbox, accessed August 23, 2025, https://finbox.com/OTCPK:ATLK.Y/explorer/roic
50. Atlas Copco Group – Cision, accessed August 23, 2025, https://mb.cision.com/Main/90/4142525/3418097.pdf
51. Atlas Copco AB Earnings Call Transcripts — ATLKY — Roic AI, accessed August 23, 2025, https://www.roic.ai/quote/ATLKY/transcripts
52. ATCO A Investor Relations – Atlas Copco AB – Alpha Spread, accessed August 23, 2025, https://www.alphaspread.com/security/sto/atco%20a/investor-relations
53. Corporate governance – Atlas Copco Group, accessed August 23, 2025, https://www.atlascopcogroup.com/en/investors/corporate-governance
54. Annual Report 2024 – Cision, accessed August 23, 2025, https://mb.cision.com/Main/90/4121932/3333175.pdf
55. Atlas Copco AB (ATLCY) Statistics & Valuation Metrics – Stock Analysis, accessed August 23, 2025, https://stockanalysis.com/quote/otc/ATLCY/statistics/
56. Atlas Copco AB PE Ratio 2010-2025 | ATLKY – Macrotrends, accessed August 23, 2025, https://www.macrotrends.net/stocks/charts/ATLKY/atlas-copco-ab/pe-ratio
57. P/E ratio for Atlas Copco (ATCO-B.ST) – Companies Market Cap, accessed August 23, 2025, https://companiesmarketcap.com/gbp/atlas-copco/pe-ratio/
58. EV / EBITDA For Atlas Copco AB Series B (0XXV) – Finbox, accessed August 23, 2025, https://finbox.com/LSE:0XXV/explorer/ev_to_ebitda_ltm/
59. Atlas Copco AB (publ) (0XXT) EV/EBITDA – Investing.com UK, accessed August 23, 2025, https://uk.investing.com/pro/LSE:0XXT/explorer/ev_to_ebitda_ltm
60. Atlas Copco A Stock Price Today | ST: ATCOa Live – Investing.com, accessed August 23, 2025, https://www.investing.com/equities/atlas-copco-a
61. Ingersoll Rand (IR) Statistics & Valuation – Stock Analysis, accessed August 23, 2025, https://stockanalysis.com/stocks/ir/statistics/
62. Illinois Tool Works Inc. (ITW) Stock Valuation Grade & Metrics | Seeking Alpha, accessed August 23, 2025, https://seekingalpha.com/symbol/ITW/valuation/metrics
63. Illinois Tool Works Inc (XMIL:1ITW) EV / EBITDA – Investing.com, accessed August 23, 2025, https://www.investing.com/pro/XMIL:1ITW/explorer/ev_to_ebitda_ltm
64. Air Compressor Technology Innovations: Staying Ahead in a Competitive Market, accessed August 23, 2025, https://www.diversitech-global.com/post/air-compressor-technology-innovations-staying-ahead-in-a-competitive-market