Atlas Copco reports stronger demand for gas and process compressors in third quarter

Atlas Copco Group reported increased demand for gas and process compressors during the third quarter of 2026, supported by continued investment in LNG applications and other industrial markets.

The Swedish equipment manufacturer said orders for gas and process compressors increased notably compared with the same period in 2025, with particularly strong growth in North America and Europe. Demand remained solid for equipment used in LNG and district heating applications, although order intake declined from the unusually strong levels recorded in the second quarter.

The improvement contributed to an 8% increase in orders for the company’s Compressor Technique business area, which received SEK 20.4 billion (US$2.2 billion approximately) in orders during the July-September period, compared with SEK 18.9 billion a year earlier. Organic order growth was 6%.

Vagner Rego

Revenues for Compressor Technique increased 7% to SEK 20.4 billion, including organic growth of 5%.

Despite higher revenues, the business area’s operating profit declined 1% to SEK 4.8 billion, while its operating margin narrowed to 23.6% from 25.3% a year earlier.

Atlas Copco attributed the lower margin to unfavorable currency effects, a less favorable sales mix and increased supply chain costs.

Demand for industrial compressors also remained solid, with increased orders for both small and large units. North America and Asia recorded year-over-year growth, while demand declined somewhat in Europe.

The company’s compressor service business continued to expand, with orders increasing across all geographic regions.

Group orders surge 29%

Across its four business areas, Atlas Copco reported third-quarter orders of SEK 52.3 billion, up 29% from SEK 40.5 billion a year earlier. Organic order growth reached 25%.

Group revenues increased 15% to a record SEK 47.9 billion, while operating profit rose 16% to nearly SEK 10 billion. The operating margin improved slightly to 20.8%, compared with 20.5% in the corresponding period last year.

“The overall demand for Atlas Copco Group’s products, services and solutions was very strong, and order intake increased significantly,” said Vagner Rego, president and CEO of Atlas Copco Group. “Most equipment segments delivered solid growth and the service business continued to develop positively.”

The strongest growth came from the company’s Vacuum Technique business area, where orders surged 87%, driven primarily by semiconductor industry demand.

Power Technique also reported substantial gains, with orders and revenues each increasing 25%. Demand for portable compressors and industrial pumps helped drive the improvement, particularly in North America.

The Power Technique business recorded revenues of SEK 8.7 billion and operating profit of SEK 1.6 billion, an increase of 34% from the previous year. Its operating margin improved to 18.3% from 17%.

Specialty rental orders also increased significantly, primarily reflecting contributions from recent acquisitions, while organic rental demand improved in North America and Europe.

Compressor business expands through acquisitions

Atlas Copco continued expanding its Compressor Technique distribution network during the quarter through several acquisitions.

These included 3C Industrial LLC, a U.S. compressed air distributor with 26 employees and approximately SEK 108 million in 2025 revenues, along with compressed air distribution businesses in Portugal and Australia and a process filtration distributor in Ireland.

Following the quarter, Atlas Copco announced the acquisition of Euroklimat Air-Conditioning & Refrigeration Co. Ltd., a Chinese manufacturer of industrial heating and cooling equipment.

Euroklimat, which generated approximately SEK 1.8 billion in revenues during 2025 and employs about 1,000 people, will become part of the Oil-free Air division within Compressor Technique.

The acquisition expands Atlas Copco’s presence in industrial process cooling and energy conversion applications.

Outlook remains steady

For the first nine months of 2026, Atlas Copco reported group orders of SEK 148.7 billion, an increase of 17%, while revenues increased 6% to SEK 133.4 billion.

The Compressor Technique business generated SEK 61.8 billion in orders during the nine-month period, an increase of 4%, while revenues edged up 1% to SEK 58.2 billion.

Despite the strong third-quarter performance, Atlas Copco maintained its near-term outlook, saying it expects customer activity to remain at current levels.

“I am proud that we have delivered very strong order intake and record revenues,” Rego said. “Now we continue our focus on supporting our customers and adapting the business to current market conditions in the different segments.”