Sweden · Delayed Price · Currency is SEK NOTE AB Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 started weak but improved, ending above sales guidance with strong order backlog growth and robust delivery performance. The STI acquisition boosts exposure to the defense sector, and momentum is expected to accelerate in Q2 and beyond, with margins and cash flow set to improve.
Fiscal Year 2025
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Q4 saw record profitability and strong order backlog, especially in Defence, despite sales delays. Major investments and the Custom Electronics acquisition were funded by internal cash flow, with a robust balance sheet supporting future growth and acquisitions.
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Q3 delivered 6% organic growth and a 9.3% operating margin, with strong cash flow and EPS up 26% year-over-year. The Kasdon acquisition is set to boost profitability, while Greentech rebounded with 47% growth. Currency effects and customer delays are tempering full-year guidance.
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Q2 delivered stable sales and margins, with strong cash flow and a 6% order backlog increase. FX headwinds led to lower full-year sales guidance, but H2 is expected to see 5-10% growth, driven by GreenTech and Security & Defence, and at least one acquisition is targeted.
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Q1 saw strong profitability and record cash flow despite weak sales, with operating margin back in double digits. Security and defense led segment growth, while communication and medtech remained weak. Outlook remains positive for gradual growth recovery amid ongoing market uncertainties.
Fiscal Year 2024
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Q4 results met guidance with stabilized demand, strong cash flow, and resilient margins despite an 8% full-year sales decline. Outlook for 2025 is positive, with growth expected in the second half and continued margin strength.
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Q4 2024 is expected to deliver double-digit profitability and sales above SEK 1 billion, with cautious but stable growth projected for 2025. Investments in automation, capacity, and sustainability support long-term targets, while defense and medtech segments are set to drive future growth.
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Q3 saw a 22% sales decline but strong profitability and cash flow, with continued investments in automation and facilities. No significant recovery is expected in Q4, but growth is anticipated in 2025. Risks remain from weak global demand and customer destocking.
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Q2 sales declined 6% year-over-year, mainly due to weak communication and customer destocking, but profitability and cash flow remained strong. Guidance for 2024 was lowered, with margins expected to stay robust and growth anticipated to resume in 2025.