Q2 2026 MilDef Group AB Earnings Call Transcript
Key Points
- Mildef Group AB (STU:8QA) reported a strong Q2 with net sales growing by 64% organically.
- Operating profit EBITA increased by almost 300%, showcasing the scalability of their business model.
- The company secured a new seven-year strategic framework agreement with the Swedish Defence Material Administration, potentially worth up to SEK1.5 billion.
- Gross margin improved significantly to 51.9% from 46% in the same period last year, driven by a profitable sales mix.
- The order backlog reached a record high of over SEK4.2 billion, indicating strong future sales potential.
- Order intake dropped by 17% compared to Q2 2025, reflecting volatility in the defense sector.
- Free cash flow decreased to SEK7.4 million from SEK32.7 million in Q2 2025, impacted by increased inventory levels.
- There are ongoing challenges in the supply chain for electronic components, affecting lead times and price levels.
- The gross margin improvement in Q2 may not be sustainable as a new normal due to variability in product and customer sales mix.
- Operating expenses increased by 27%, partly due to nonrecurring items and unrealized FX losses.
(audio in progress) Please, Daniel.
Thank you, Olof, for that introduction, and a warm welcome to all of you that are here in the high peak summer period in Sweden, joining this Q2 con call for MilDef. These are the areas that we will try to cover today. We will have some highlights for the second quarter. And post that, we will have some more clarifications on the financial side, and then we will have a summary and, of course, in the end, a Q&A session.
But let's start with slide number 3 then and look at the highlights for the second quarter.
Q2 was a strong quarter when it comes to the delivery execution and with a high operating leverage, indicating that our investments and efforts into increased delivery capacity has now really started to pay off. Net sales grew by 64%, purely organic, and operating profit EBITA grew with almost 300%, which is, to me, a clear
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