Mildef Group (MILDEF) Q1 2026 earnings summary

Executive summary

• Achieved record order intake of SEK 1,085 million in Q1 2026, up 169% year-over-year, reflecting robust customer demand and strong delivery execution, with organic growth at 134% and acquired growth at 35%.

• Net sales rose 108% to SEK 708 million, with 41% organic and 67% acquisition-driven growth, supported by improved delivery execution and capacity investments.

• Adjusted EBITA reached SEK 121.6 million (margin 17.2%), and adjusted EBIT was SEK 102.8 million (margin 14.5%), with margin improvements and significant cash generation.

• Free cash flow improved to SEK 159 million, an all-time high, and earnings per share after dilution increased to SEK 1.51.

• Strategic contracts secured in the solutions segment, expanding business beyond hardware and enhancing long-term stability.

Financial highlights

• Order backlog as of March 31, 2026, was SEK 4,051 million, up 46% year-over-year, with book-to-bill ratio for Q1 at 1.53 and LTM at 1.61.

• Gross margin was 44.3% (down from 48.1%), impacted by the lower-margin roda acquisition; excluding M&A, underlying gross margin was 53.9%.

• Net profit for Q1 2026 was SEK 70.9 million, compared to SEK -0.1 million in Q1 2025.

• Cash and cash equivalents at period end were SEK 241 million, with an unutilized overdraft facility of SEK 120 million.

• Free cash flow was SEK 159.3 million, a record for an individual quarter.

Outlook and guidance

• Backlog for 2026 delivery is just under SEK 1.9 billion, representing about 20% growth from the prior year.

• Management expects continued strong demand, driven by increased defense investments in Europe and NATO, and is investing in capacity to support long-term growth.

• Gross margin is expected to stabilize above 30% long-term, despite quarterly volatility.

• Continued investment in capacity expansion, including doubling production space in Helsingborg by autumn 2027.

• Promising outlook for the German market over the next five years, supported by integration of recent acquisitions.