Mildef Group (MILDEF) CMD 2024 summary

Strategic direction and market outlook

• Positioned for accelerated growth as defense spending rises, with full impact expected from 2025 onward.

• Focus on digitalization of defense, expanding from vehicles to individual soldiers, increasing addressable market volume and multi-domain offerings (land, air, naval).

• Geographic expansion prioritized, especially in Central Europe and the U.S., leveraging proven products and seeking breakthrough contracts.

• Active M&A agenda targets both portfolio enhancement and local market access, with disciplined approach to valuations and strategic acquisitions.

• Sweden's NATO membership seen as a long-term trust and growth enabler.

Business model and product offering

• Core business is ruggedized tactical IT for defense, with hardware as main revenue stream (70%), complemented by growing services (25%) and software (5%).

• Modular, customizable products enable efficient scaling and long lifecycle support.

• Strategy to move up the value chain, offering turnkey solutions and acting as a system house.

• Strong focus on quality, standardization, and interoperability, especially with NATO requirements.

• Proven track record as a supplier with over 25 years of experience, leveraging long-term relationships and a reputation for reliability and innovation.

Financial performance and targets

• Net sales reached SEK 1,151 million in 2023, with a CAGR of 36% since 2019 and a 56% growth rate in 2023.

• Achieved 24% CAGR over the past decade, with recent years showing even higher growth rates.

• Upgraded financial targets: at least 25% annual growth, EBITA margin of at least 15%, net debt/EBITDA not to exceed 2.5x, and dividend payout of 20–40% of net profit.

• Gross margin improved to 49.4% (LTM), supported by product mix and operational improvements.

• 2026 illustration targets SEK 2,248 million in net sales and EBITA margin above 15%, driven by organic growth, acquisitions, and operational leverage.