HMS Networks (HMS) CMD 2025 summary

Strategic direction and organizational structure

• Focus on three divisions: Industrial Data Solutions, Industrial Network Technology, and New Industries, each with distinct customer bases and growth strategies.

• New divisional setup aims to increase transparency, accountability, and collaboration between sales and R&D.

• No major geographical expansion planned; emphasis on deepening presence in existing markets and leveraging local teams.

• Organizational culture emphasizes entrepreneurial spirit, high-performing and engaged employees, and gender diversity in management.

• Accelerating new customer acquisition and expanding within the existing base from 2026-2030, with M&A prioritized to strengthen divisions.

Financial performance and targets

• Achieved 18% CAGR in revenue over the past five years, driven by organic growth and six acquisitions.

• Net sales target set at SEK 7.5 billion by 2030, with a 25% EBITA/EBITDA margin and dividend payout of 30-50% of adjusted EPS.

• Gross margin improved to 65% in 2023, with a long-term ambition to exceed 65%.

• ARR targeted to reach 10% of net sales by 2030, supporting gross margin ambitions.

• Financial leverage to remain below 2.5x Net Debt/EBITDA, with debt levels being reduced monthly.

Growth initiatives and business model evolution

• Ambition to double revenue by 2030 through a balanced mix of organic growth and M&A, focusing on self-financed acquisitions.

• Significant investments in product portfolio updates to boost service content and increase ARR.

• More than 50% of organic growth expected from new products, with strong R&D and product innovation.

• Direct sales to increase from 53% to over 55% of revenue, enabling better cross-selling and customer proximity.

• Win, Grow, Keep strategy implemented across sales teams to drive new customer acquisition and maximize existing relationships.