Year-end report 2025, January – December

Fourth quarter

• Order intake decreased by 4% to SEK 854 m (893). Organically, order intake increased by 3%
• Net sales increased by 18% to SEK 951 m (807). Organically, net sales increased by 23%
• Adjusted EBIT reached SEK 268 m (163), equal to a 28.2% (20.2) adjusted operating margin
• EBIT reached SEK 236 m (106), equal to a 24.8% (13.2) operating margin
• Adjusted profit after tax totaled SEK 209 m (131). Adjustments include a non-recurring tax effect of SEK 104 m, increasing the tax expense for the period. Adjusted basic earnings per share were SEK 4.17 (2.60)
• Profit after tax totaled SEK 72 m (75) and basic earnings per share were SEK 1.44 (1.49)
• Cash flow from operating activities amounted to SEK 231 m (177)
• Signed a binding agreement to acquire Molex’s industrial communications business

 Yearly

• Order intake increased by 23% to SEK 3,456 m (2,812). Organically, order intake increased by 10%
• Net sales increased by 17% to SEK 3,577 m (3,059). Organically, net sales increased by 3%
• Adjusted EBIT reached SEK 911 m (665), equal to a 25.5% (21.8) adjusted operating margin
• EBIT reached SEK 762 m (503), equal to a 21.3% (16.4) operating margin
• Adjusted profit after tax totaled SEK 689 m (472) and adjusted basic earnings per share were SEK 13.73 (9.65)
• Profit after tax totaled SEK 435 m (310) and basic earnings per share were SEK 8.66 (6.35)
• Cash flow from operating activities amounted to SEK 877 m (592)
• New organizational structure from January 1, 2025, to strengthen customer focus and cross-selling
• New financial and strategic targets have been set, presented at HMS Capital Markets Day on September 9
• The Board of Directors proposes a dividend to the amount of SEK 4.80 (0) per share

Subsequent events

• Completed acquisition of Molex’s industrial communications business
  

CEO comments

STRONG DELIVERIES CONCLUDE THE YEAR
The final quarter of the year was characterized by high delivery volumes. The high volumes were enabled by both the increased capacity in our North American manufacturing unit and by the fact that a significant portion of the order backlog that was build up at the end of 2024 and in the beginning of 2025 was delivered.

The quarter’s order intake amounted to SEK 854 million (893), with an organic increase of 3%, against challenging comparables from 2024, due to big project orders in the Industrial Data Solutions division (IDS). The market continues to be difficult to analyze, and order intake has partly fluctuated during the quarter. We see that the underlying business is developing positively, although there is somewhat lower activity within transactions that can lead to larger orders and projects for IDS. For the full year, order intake amounted to SEK 3,456 million (2,812) with an organic increase of 10%.

The quarter’s revenue reached a record level of SEK 951 million (807), corresponding to an organic increase of 23%. For the full year, revenue amounted to SEK 3,577 million (3,059), corresponding to an organic increase of 3% and a reported increase of 17%. In total, the book-to-bill ratio for the year landed at 0.99 in constant currencies.

During the final quarter of the year, we saw continued improvement in Europe and the Middle East. Germany also showed growth in both revenue and order intake. In North America, we note a temporarily weaker order intake compared with earlier this year, while we were able to deliver high volumes. In Asia, development is stable with signs of recovery in Japan.

We can summarize the demand situation for full-year 2025 as a gradual improvement compared to 2024, mainly reflected in the increased organic order intake of 10%. In the European market, we continue to see a somewhat cautious approach among customers, particularly in Germany, even though development improved during the second half of the year. North America performed stronger than expected in 2025, and we see both a broadening and deepening of demand in the region.

NEW RECORD IN OPERATING PROFIT
The gross margin developed in line with our expectations and amounted to 63.0% (62.6%), both for the quarter and the full year. The margin has now stabilized, following a year in which tariffs and price adjustments intermittently affected the margin.

Normally, profitability is somewhat lower in the fourth quarter, but in 2025 the adjusted operating profit for the quarter reached a record level of SEK 268 million (163), corresponding to a margin of 28.2%. The high delivery volumes were the main cause of the positive result in the quarter. For the full year, we reached an adjusted operating profit of SEK 911 million (665), corresponding to a margin of 25.5%, in line with our long-term profitability targets.

We delivered another quarter with strong underlying cash flow from operations, which after changes in working capital amounted to SEK 231 million (177), where continued inventory reductions contributed positively with SEK 36 million. Cash flow was held back by a non-recurring tax expense. Net debt in relation to adjusted EBITDA at year-end amounted to 2.21x, which, in line with our previous forecasts, aligns with our long-term target of below 2.5x. To secure our financial capacity to execute our strategic agenda through 2030, we also entered into a new long-term financing agreement with two Swedish banks during the quarter.

NON-RECURRING TAX EXPENSE
In connection with the Group’s acquisition of Red Lion in 2024, the Group elected to apply Section 338(h)(10) of the U.S. federal tax legislation. The election results in the transaction being treated as an asset acquisition for tax purposes, allowing for tax depreciation of identifiable assets and goodwill.

The application of Section 338(h)(10) has resulted in a non-recurring tax effect of SEK 104 million, which has been recognized in the tax expense for the period. There is some uncertainty regarding the final amount of the non-recurring expense, which may be reduced following the additional review to be carried out in 2026. The future tax benefits are collectively assessed to exceed the one‑off effect by a comfortable margin.

ACQUISITION OF MOLEX BUSINESS UNIT WITHIN INDUSTRIAL COMMUNICATION
During the quarter, an agreement was signed to acquire parts related to the industrial communication business from Molex’s Industrial Solutions division. The new addition is well aligned with the INT division’s existing offering as well as future strategy. We see several synergies between the acquisition’s leading offering within network controllers, which complement our product portfolio and broaden our total customer offering while creating favorable cross-selling opportunities. The transaction closed on January 2, 2026, and already by mid-January we began delivering products through our supply chain from the acquired business. The integration within the INT division is now well underway.

OUTLOOK
We remain cautiously optimistic regarding the development potential in the short to medium term, while acknowledging continued uncertainty regarding the macroeconomic environment. Particularly the global trade policy situation may affect overall demand and postpone customers’ willingness to invest.

In the longer term, incentives and trends toward regionalized industrial production (North America, Europe, China, and Southeast Asia) are expected to create a greater demand for automation, digitalization, and communication for industrial applications – something that is beneficial for HMS. We are optimistic about the opportunities to continue winning new customers and expanding business with our current customers through continued investments in product development, innovation, and sales resources. Achieving profitable growth—both organically and through acquisitions—will remain a strategic priority for HMS in the coming years.

Halmstad January 27, 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 January 27, 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.

Attachment

• HMS Networks Q4 Report 2025