Q1 2026 HMS Networks AB Earnings Call Transcript
Key Points
- HMS Networks AB (HMNKF) reported a strong organic growth in sales, up 15%, with a double-digit growth in both net sales and order intake.
- The company achieved an EBITA margin of 27.2%, surpassing expectations, supported by stable gross margins and controlled operating expenses.
- Cash flow remained robust, with an adjusted EPS of SEK3.78, and the company is on track to reach SEK1 billion in cash flow from operations over the last 12 months.
- The acquisition of Molex Industrial Communication has been successfully integrated, contributing positively to order intake and expected to add more than USD10 million in annual revenue.
- HMS Networks AB (HMNKF) is investing in product development and AI, aiming to enhance efficiency and leverage current resources effectively.
- The company faces headwinds from a weak Swedish currency, impacting financial results.
- There is concern over geopolitical tensions in the Middle East, which have led to a drop in order intake for the building automation segment.
- The company is experiencing increased lead times and prices for certain semiconductors, which could affect future operations.
- Despite strong performance, the company acknowledges that the current order intake pace, boosted by pre-orders, is not sustainable.
- The integration of acquisitions and increased R&D expenses are expected to raise operating costs in the coming quarters.
Welcome to the HMS Networks Q1 presentation for 2026.
(Operator Instructions)
Now I will hand the conference over to CEO, Staffan Dahlström and CFO, Joakim Nideborn. Please go ahead.
¶ -
Thank you. Good morning, everybody. Welcome to this quarter one call. It's me, Staffan Dahlström, CEO and Joakim Nideborn. Calling you from a crispy and sunny spring day in Halmstad. I think also this report is quite crispy and sunny, and we're very pleased to present three sections, business update, I'll do that, and then Joakim dive into the numbers, and we end up with the Q&A.
But if we look on the quarter one here, we're very pleased to see fairly good momentum. We have good organic growth on sales, up 15%, a little bit of headwind on the weak Swedish currency at the moment. Joakim will talk more about that. But also order intake is organically growing double-digit, and this combination of double-digit growth on both net sales and order intake, we're really pleased to see
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