Sweden · Delayed Price · Currency is SEK HMS Networks AB Earnings Call Transcripts
Fiscal Year 2026
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Record sales and profitability driven by strong demand in data center automation and semiconductors, with broad-based growth across regions and divisions. Margins remain robust but are expected to face some pressure in H2 due to rising component costs and supply constraints.
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Q1 2026 saw 15% organic sales growth, a 27% EBITDA margin, and record SEK 1.1 billion order intake, driven by strong performance in North America, China, and the successful Molex acquisition. Cash flow and profitability exceeded targets, with continued R&D and AI investments.
Fiscal Year 2025
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Organic sales grew 23% in Q4, with strong profitability and cash flow driven by Red Lion and PEAK integrations. The Molex acquisition expands R&D and product offerings, while 2026 is expected to bring further growth as market conditions improve.
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Record EBIT and cash flow driven by strong North American demand and IDS division performance. Organic growth returned, with robust order intake and margin expansion, while investments in U.S. production and strategic R&D are set to support future growth.
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The group aims to double revenue to SEK 7.5 billion by 2030 through a balanced mix of organic growth and M&A, focusing on new products, ARR, and operational efficiency. Strategic priorities include divisional accountability, customer proximity, and sustainability, with a target EBITDA margin of 25%.
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Q2 saw flat sales and strong cash flow, with organic order intake up 8% but margin pressured by tariffs and FX. INT division led growth, while large projects faced delays amid market uncertainty. Margin recovery is expected from Q3 as price increases take effect.
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Order intake rose 12% organically and 44% including M&A, while net sales declined 17% organically. Adjusted EBIT margin reached 24.5%, with strong cash flow supporting deleveraging. Tariffs and currency remain key uncertainties, but mid-term outlook is positive.
Fiscal Year 2024
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Q4 saw strong order intake and resilient margins despite a 33% organic sales decline, with acquisitions driving total growth and North America outperforming. Cost control, restructuring, and a new divisional structure position the company for recovery, expected mainly in H2 2025.
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Organic sales fell 30% year-over-year due to weak demand and ongoing destocking, but strong cost control and inventory reductions supported a 24.5% adjusted EBIT margin. The new divisional structure, PEAK-System acquisition, and continued integration of Red Lion aim to drive future growth.
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Q2 2024 saw 20% reported growth driven by the Red Lion acquisition, but organic sales declined 20% year-over-year due to weak demand and destocking. Integration of Red Lion is progressing, with early synergies and improved cash flow, while recovery is expected to accelerate in late 2024 and into 2025.