Q2 2026 HMS Networks AB Earnings Call Transcript
Key Points
- HMS Networks AB (HMNKF) reported strong organic growth of 12% and total growth of 18% in net sales, reaching SEK991 million.
- The company achieved a record EBITDA of SEK266 million, with a margin of 26.8%, surpassing their target of 25%.
- Order intake showed solid growth, with a 15% organic increase and a total increase of 20%, driven by strong performance in the APAC region with 35% order growth.
- HMS Networks AB (HMNKF) reported a record cash flow from operations of SEK334 million, aiding in debt management.
- The company received the EcoVadis gold medal for sustainability, placing them in the top 5% of companies in their category, highlighting their commitment to environmental and governance standards.
- The company is facing increased lead times and prices for memory and other semiconductor components, which could pressure margins in the second half of the year.
- There is uncertainty in the macroeconomic environment, which could impact future performance.
- The automotive market, particularly in Europe, is struggling, affecting the Vehicle Communication segment.
- The Building Automation business is experiencing a slowdown in the Middle East, a key strategic market.
- Margins in smaller divisions are showing variability, with some softness noted in the current quarter.
Welcome to the HMS Networks Q2 presentation for 2026. (Operator Instructions) Now I will hand the conference over to CEO, Staffan Dahlstrom; and CFO, Joakim Nideborn. Please go ahead.
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Thank you, operator. Good morning, everybody. Welcome to HMS Networks Quarter 2 2026. Sunny day in Halmstad, where I'm sitting and Joakim is sitting a bit further south, north of Malmö. I hope the sun is shining there as well.
Sun is also shining in our numbers. We are very happy to present this quarter two report. I start with a quick business update, then Joakim will do a detailed summary of the financial numbers, and then we end up with a Q&A at the end. But a few highlights. If you look on our net sales, good growth.
Organic growth, 12%. We're happy with that. In total, backed by M&A and some favorable currency, plus 18%, strong currency and a good quarter. Net sales, SEK991 million. We are not really at SEK1,000 million yet, but the coming quarters, we'll
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