Mildef Group (MILDEF) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw a 43% year-over-year increase in order intake to SEK 407 million, net sales rose 4.4% to SEK 302 million, and the order backlog reached a record SEK 1.45 billion, supporting future growth.

• Gross margin improved to 51.1% from 50.1% in Q2 2023, reflecting operational efficiency and favorable product/customer mix.

• EBITDA margin for Q2 was 17.8%, with adjusted EBITDA at SEK 53.6 million; operating cash flow was SEK 20.3 million, marking the third consecutive quarter of positive flow.

• Major contracts included SEK 69 million handheld/nano drone order (US), SEK 52 million BAE Systems Bofors order (Sweden), and a SEK 53 million Estonian defense contract.

• Strategic investments included the acquisition of Advanced Vision Technology Ltd. (UK), expansion of integration services in Stockholm, and appointment of Magnus Hagman as VP Nordics.

Financial highlights

• Net sales for Q2 were SEK 302 million, up 4.4% year-over-year; order intake was SEK 407 million, up 43% year-over-year.

• EBITDA for Q2 reached SEK 53.6 million (margin 17.8%), EBIT SEK 34.1 million (margin 11.3%), and net profit SEK 23.3 million.

• Gross margin Q2: 51.1% (Q2 2023: 50.1%); H1: 49.9% (H1 2023: 47.7%).

• Operating cash flow for H1 improved to SEK 41.1 million from SEK 24.5 million year-over-year.

• Equity at period end was SEK 840 million, with an equity/assets ratio of 56%.

Outlook and guidance

• Full impact of increased European defense spending expected from 2025 onward, with long-term demand anticipated to remain strong.

• Focus areas for 2024: capturing market growth, expanding geographically, delivering on time, enhancing customer offering, improving working capital, and supporting long-term growth through strategic investments.