HMS Networks announces strategic targets for 2030

New financial and sustainability targets have been set by the Board of Directors of HMS Networks AB (publ). The targets together with the 2030 strategy and a business update will be presented at HMS’ Capital Markets Day today.

The strategic period 2020-2025 is approaching its end and although the period is not yet closed, HMS Networks is on track to reach the 2025 targets, originally set in 2020.

In 2026-2030, HMS will accelerate winning new customers and expand business within the existing customer base. Besides organic growth, mergers and acquisitions will be of high priority to strengthen and broaden the business of each division. Over the next five years, there will be significant investments in an updated product portfolio to increase the service content to customers and enable a larger share of annual recurring revenue (ARR). To secure continued solid profitability, HMS has also set targets to continue improving operational efficiency.

2030 Targets

Planet & Sustainability

• HMS is in the process of applying for the Science-Based Targets Initiative – and consequently follows the ambitions to reach a net positive carbon footprint by 2050.
• HMS also aims to obtain an EcoVadis Gold rating, placing HMS in the top 5% in the industry.

People & Customers

• HMS believes that “happy and high-performing employees generate loyal customers” and continues to keep the people agenda as a top priority. The target for Employee Engagement Index has been set to reach 80 over the period, with a goal to increase the share of female managers to at least 30% by 2030.
• The systematic work to generate long-term customer value continues, and the target for Customer Net Promotor Score has been set to at least 50 over the period.

Growth & Profit

• The Net Sales target for 2030 has been set to SEK 7.5 billion, with an EBITA-margin target of 25% for the period. HMS will move away from “adjusted EBIT” as the main profitability metric. The new profitability metric will be EBITA, where amortization of excess values will not be included. However, amortization of other intangibles such as activated development costs will. This means that in principle, the EBITA metric will be the same as the “adjusted EBIT” with the only difference that non-recurring adjustments, for example integration- and restructuring costs will now impact the EBITA.
• The target for dividend will be in the interval between 30-50% of adjusted Earnings Per Share (EPS) and the guideline for financial leverage, Net Debt in relation to Earnings Before Interest, Tax, Depreciation and Amortization, should over time be below 2.5x.
• Furthermore, for 2030 HMS aims to grow Annual Recurring Revenue (ARR) to 10% of net sales, which will be a contributor to reach the new higher gross margin ambition of above 65%.

Business update

The business climate in the third quarter has developed similarly to the first half of the year, with a slight improvement in demand from two of the main markets - USA and Germany. However, the rest of EU and Japan have been somewhat weaker than the first half of the year. The good pace in China continues.

As communicated in the report from the second quarter, there was a temporary delivery stop from the US factory in June due to the launch of a new ERP-system. The postponed deliveries of 15 MSEK that were delayed will be delivered in Q3.

US tariffs that had a somewhat negative impact on gross margins in Q2 have now been offset by price increases, and the gross margin should as a result be slightly improved.

The debt level in the company is being reduced month-by-month with the plan to reach a level around 2.5x Net Debt divided by EBITDA by year-end.

HMS’ Capital Markets Day

The presentation will start today at 09.00 CEST and is expected to end at 12.00 CEST. All participants joining digitally will be able to ask written questions via the webcast. No pre-registration is required for participation via webcast. The event will also be available for viewing after the event. The live webcast will be available via this link.

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 is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:30 CEST on September 9, 2025.

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 3,059 million in 2024 and is listed on the NASDAQ OMX in Stockholm in the Large Cap segment and Telecommunications sector.

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• HMS Networks announces strategic targets for 2030