First quarter
- Order intake increased by 19% to SEK 1,108 m (930). Organically, order intake increased by 10%
- Net sales increased by 9% to SEK 971 m (890. Organically, net sales increased by 15%
- EBITA reached SEK 264 m (205), equal to a 27.2% (23.1) margin
- EBIT reached SEK 237 m (175), equal to a 24.4% (19.6) operating margin
- Profit after tax totaled SEK 163 m (115) and basic earnings per share were SEK 3.24 (2.29)
- Profit after tax adjusted for amortization of excess values from acquisitions (adjusted profit after tax) totaled SEK 190 m (146) and adjusted basic earnings per share were SEK 3.78 (2.91)
- Cash flow from operating activities amounted to SEK 250 m (187)
- Acquisition of Molex’s industrial communications business
Last twelve months
- Order intake increased by 11% to SEK 3,633 m (3,269). Organically, order intake increased by 10%
- Net sales increased by 10% to SEK 3,659 m (3,333). Organically, net sales increased by 10%
- EBITA reached SEK 937 m (662), equal to a 25.6% (19.9) margin
- EBIT reached SEK 825 m (548), equal to a 22.5% (16.4) operating margin
- Profit after tax totaled SEK 482 m (319) and basic earnings per share were SEK 9.61 (6.43)
- Profit after tax adjusted for amortization of excess values from acquisitions and non-recurring items (adjusted profit after tax), totaled SEK 699 m (433) and adjusted basic earnings per share were SEK 13.93 (8.67)
- Cash flow from operating activities amounted to SEK 940 m (721)
CEO comments
INCREASED DEMAND ACROSS ALL DIVISIONS
The year has started with strong demand for HMS. All divisions report positive development, reflected in increased order intake as well as higher revenue.
Order intake exceeded SEK 1 billion for the first time in a single quarter, representing an important milestone for HMS. Order intake amounted to SEK 1,108 million (930), corresponding to an organic growth of 10%. During the quarter, we estimate that orders of approximately SEK 130 million were received that would normally have been distributed over the rest of the year. This relates primarily to the newly acquired Molex’s industrial communications business, as well as extended lead times for two product groups within the Industrial Data Solutions division (IDS).
Net sales reached SEK 971 million (890), representing a new record, with an organic growth of 15%. The book-to-bill ratio amounted to 1.16 in constant currencies, indicating favorable conditions for continued growth.
Currency volatility and a stronger Swedish Krona during most of the quarter, together with product mix effects, had a negative impact on the gross margin. This was partly offset by economies of scale arising from higher volumes. Overall, the gross margin amounted to 62.4% (63.0).
Over the past six months, HMS has initiated a ramp-up of development projects, focusing on new product generations for the two largest divisions, IDS and Industrial Network Technology (INT). Operating expenses were positively impacted by currency effects during the quarter but are expected to increase gradually over the year as investments in the organization continue. Operating expenses amounted to SEK 373 million, corresponding to an organic growth of 3%.
While the investments in product development continue to increase, we are also observing improved efficiency in the development organizations, supported by using AI-based tools. Pilot projects are being conducted across several parts of the Group to further enhance efficiency through the usage of AI.
For the quarter, EBITA amounted to SEK 264 million (205), corresponding to a record level in earnings, which we continue to convert to a strong operating cash flow of SEK 250 million (187). Net debt in relation to EBITDA, excluding IFRS 16, decreased to 1.87x (3.37). From the beginning of the year, HMS uses EBITA as its primary earnings metric instead of adjusted EBIT, in order to increase transparency and facilitate follow up.
INT SHOWS A CLEAR RECOVERY AND A POSITIVE START FOR THE ACQUIRED BUSINESS
All divisions reported positive development during the quarter. The INT division showed the strongest performance, with order intake increasing by 73%, of which 25% was organic. The acquired industrial communications business from Molex developed favorably, with a couple of customers placing orders corresponding to their estimated full year demand already in the first quarter. Overall, we assess that the business will exceed previously communicated expectations for 2026. This is particularly noteworthy given that the acquisition, which primarily comprised several assets, was completed without an existing order backlog.
Integration of the business has progressed according to plan, and we continue to see good potential for the realization of synergies going forward.
POSITIVE DEVELOPMENT ACROSS ALL GEOGRAPHICAL MARKETS
Order intake and sales increased across all geographical markets. North America recorded a strong development following a somewhat weaker end to 2025.
Germany and Europe continued to develop in the right direction, although certain industrial segments remain under pressure. At the same time, higher activity levels are observed among customers that have previously shown more subdued demand.
In Asia, both China and Japan reported positive development. In China, we see increased order placements among certain customers, driven by concerns related to potential disruptions in global supply chains in the current geopolitical environment.
THE SITUATION IN THE MIDDLE EAST
Developments in the Middle East are monitored closely. During March, a slowdown in order intake was observed within the Building Automation business in the New Industries division (IN), which has relatively high exposure to the region. For the Group as a whole, however, the Middle East represents a limited market, accounting for less than 2% of the annual net sales.
Higher logistics costs were also recorded during the period, without any material impact on earnings. At the same time, the supply situation within the semiconductor segment has become more challenging, with longer lead times and price increases for certain components, such as memory components. Measures have been taken to improve delivery capability, including building larger inventories of critical components.
OUTLOOK
Demand during the first quarter was solid and broad across HMS’s major markets. Despite continued geopolitical and macroeconomic uncertainty, many of the Group’s industrial customers continue to execute their investment plans and business activities. As previously, we remain positive regarding the growth potential in a medium-term perspective, while uncertainty persists related to the macroeconomic environment, developments in the Middle East, and global trade.
In the longer term, we expect that incentives and trends towards more regionally diversified industrial production in North America, Europe, China and Southeast Asia will increase demand for automation, digitalization and communication solutions for industrial applications, which is positive for HMS. We continue to see good opportunities to win new customers and to further grow business with existing customers through continued investments in product development, innovation and sales. Creating profitable growth, both organically and through acquisitions, remains a priority for HMS.
Halmstad April 23, 2026
Staffan Dahlström
Chief Executive Officer
For more information, please contact:
Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01
Joakim Nideborn, CFO HMS, +46 (0)35 710 6983
This information is such that HMS Networks AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CEST on April 23, 2026.
HMS Networks AB (publ) is a market-leading provider of solutions in Industrial Information and Communication Technology (Industrial ICT) and employs over 1,100 people. Local sales and support are handled through over 20 sales offices all over the world, as well as through a wide network of distributors and partners. HMS reported sales of SEK 3,577 million in 2025 and is listed on the NASDAQ OMX in Stockholm in the Large Cap segment and Telecommunications sector.
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