4C Group (4C) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 rose 26% year-over-year to SEK 95.4 million, driven by strong software revenue and a major new UK Defence contract, with software revenue up 52% and comprising 67% of total sales.

• EBIT improved to SEK 13.2 million with a 14% margin, a significant turnaround from a -16% margin in Q2 last year.

• Order intake hit SEK 683 million, the highest ever, mainly due to a record GBP 55 million (SEK 700 million), 15-year contract with the UK Defence sector, boosting the order book to SEK 960 million.

• Cost-saving measures reduced total costs by 10% year-over-year and are fully reflected in Q2, supporting improved operating margins and a turnaround in profitability.

• Defence segment accounted for 77% of total revenue, reflecting strategic focus and strong demand.

Financial highlights

• Q2 net income reached SEK 15.1 million, reversing a SEK -9.0 million loss in Q2 2025.

• Earnings per share were SEK 0.39 (diluted and undiluted), up from SEK -0.24.

• EBITDA for Q2 was SEK 26.2 million (margin 27%), compared to SEK -1.2 million last year.

• Software ARR increased to SEK 170.5 million from SEK 147.4 million.

• Cash position at quarter-end was SEK 1.2 million, with available liquidity of SEK 2.4 million.

Outlook and guidance

• Focus remains on Defence business growth in Europe, the US, and APAC, with continued investment in sales capacity and product innovation.

• Management expects continued volatility due to uneven defence procurement, long lead times, and procurement bottlenecks, especially in the US.

• Anticipates cash flow positivity by year-end, with improved cash conversion from existing contracts and the Resilience segment targeted to be cash flow positive in 2026.

• Guidance updates pending stabilization of purchasing cycles and procurement processes.