Mildef Group (MILDEF) CMD 2025 summary

Strategic direction and growth outlook

• Focus on scaling operations, climbing the value chain, and targeted expansion in defense, with resilience and sustainability as core priorities.

• Transition from hardware supplier to system house and prime contractor, delivering integrated hardware, software, and turnkey solutions to increase margins and customer stickiness.

• Significant investments in new facilities, workforce expansion, and process excellence to meet rising demand and ensure efficient capacity ramp-up.

• Continued M&A activity, including the transformative acquisition and integration of roda computer GmbH, doubling turnover and expanding the European footprint.

• Emphasis on sustainable business practices, ethical sales, robust supply chain management, and cybersecurity to maintain trust and meet ESG expectations.

Financial performance and guidance

• Achieved 25% net sales growth (LTM), with a CAGR of 36% since 2021 and 27% since 2015, and order backlog growth of 120%–121% (LTM).

• Order backlog for H2 2025 exceeds full-year 2024 sales, with backlog duration up 177% beyond 2027, supporting continued growth into 2026.

• Gross margin trending above 47.6%–50% due to value chain shift and direct government sales, though recent acquisitions impact margin mix.

• Net working capital expected to normalize to 25–30% by year-end; net debt/EBITDA to fall below 2.0 as integration progresses, with current net debt/EBITDA at 2.9x.

• Long-term targets reaffirmed: at least 25% annual growth, 15% EBITDA/EBITA margin, and 20–40% dividend payout.

Market trends, position, and business drivers

• European defense spending ramp-up, driven by new NATO targets, digitalization, and autonomy, positions the company for sustained demand.

• Strong relationships and proven track record in Nordics, DACH, UK, and North America, with a comprehensive offering of hardware, solutions, and software.

• Major contract wins with FMV, Kongsberg, Swedish Army, and Bundeswehr, and a new office in Oslo.

• OneCIS/OneSys software and system integration capabilities are strategic growth levers, enabling rapid, robust, and interoperable IT deployments for NATO and allied forces.

• Aftermarket and recurring revenue streams, including software licenses and maintenance, are under development to enhance long-term value.