HMS Networks (HMS) Q2 2026 earnings summary

Executive summary

• Achieved record net sales of SEK 991 million in Q2 2026, up 18% year-over-year, with 12% organic growth and strong performance across all regions and divisions, especially APAC with 35% order growth, driven by data center automation and semiconductor demand.

• Order intake reached SEK 979 million, up 20% year-over-year, with 15% organic growth and a balanced relationship between orders and sales.

• Strategic minority investment made in Swedish AI company Ekkono to enhance embedded machine learning capabilities.

• Awarded EcoVadis Gold Medal for sustainability, placing in the top 5% of large companies and top 1% of the industry.

• All divisions and regions contributed to growth, with Americas showing 28% organic growth.

Financial highlights

• Q2 EBITA reached SEK 266 million (26.8% margin), up 59% year-over-year, with EBITDA margin at 31.2% and gross margin at 63.8%, both improved from last year.

• Cash flow from operations was a record SEK 334 million for the quarter and SEK 584 million year-to-date.

• Adjusted EPS rose to SEK 3.65, with profit after tax at SEK 155 million and adjusted profit after tax at SEK 183 million.

• YTD net sales reached SEK 1,962 million (+13%), with EBITA of SEK 530 million (27.0% margin).

• Book-to-bill ratio at 1.0, indicating balanced demand and supply.

Outlook and guidance

• Expecting some margin pressure in H2 2026 due to longer lead times and rising component prices, especially for memory, but gross margin anticipated to remain above 62%.

• Operating cost run rate and R&D investments expected to remain stable for the rest of the year.

• Continued focus on securing inventory for critical components amid supply constraints and macroeconomic/geopolitical uncertainty.