HMS Networks (HMS) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered record net sales of SEK 951 million, with 23% organic growth and strong profitability, driven by North American performance and successful integration of Red Lion and PEAK acquisitions.

• Full-year organic order growth was 10%, with net sales up 17% to SEK 3,577 million and adjusted EBIT up 37% to SEK 911 million (25.5% margin).

• The board proposed a record dividend of SEK 4.80 per share for the April 2025 meeting.

• New divisional structure implemented from January 2025, enhancing customer focus and accountability.

• Launched 2030 strategy and received SBTI validation for climate targets.

Financial highlights

• Q4 net sales reached SEK 951 million, up 23% organically year-over-year; full-year net sales were SEK 3,577 million, up 17%.

• Adjusted EBIT for Q4 was SEK 268 million (28.2% margin); full-year adjusted EBIT was SEK 911 million (25.5% margin).

• Adjusted EPS for Q4 was SEK 4.17; full-year adjusted EPS was SEK 13.73, up 42% year-over-year.

• Cash flow from operations in Q4 was SEK 231 million; full-year cash flow was SEK 877 million, with an 82% cash conversion rate.

• Net debt/adjusted EBITDA at year-end was 2.13x–2.21x, reduced from 3.41x last year.

Outlook and guidance

• Management expects gradual OpEx increases in 2026 to support growth, with investments ramping up and a cautiously optimistic outlook amid macroeconomic uncertainties.

• North American market softness in Q4 is viewed as temporary, with expectations for recovery as large project orders return.

• Book-to-bill ratio expected to stabilize around 1x or higher in 2026 as backlog normalizes.

• Long-term trends in automation and regionalized production expected to drive demand.

• Profitable growth, both organically and via acquisitions, remains a strategic priority.