Key Takeaways
HMS Networks AB reported first-quarter profit after tax of SEK 163 million, a 38 percent year-over-year increase, as record demand pushed order intake above SEK 1 billion for the first time.
"The year has started with strong demand for HMS. All divisions report positive development, reflected in increased order intake as well as higher revenue," Staffan Dahlström, Chief Executive Officer at HMS, said in a statement.
The industrial technology company's net sales grew 15 percent organically to SEK 971 million. EBITA reached a record SEK 264 million, lifting the margin to 27.2 percent from 23.1 percent a year earlier. Basic earnings per share increased to SEK 3.24 from SEK 2.29.
The results signal strong execution despite global supply chain pressures and geopolitical uncertainty. The company said its recently acquired industrial communications business from Molex developed favorably and will exceed previously communicated expectations for 2026.
Order intake increased across all geographical markets, with North America showing a strong recovery after a weaker end to 2025. The company noted that while some industrial segments in Europe remain under pressure, activity levels are rising.
HMS is navigating longer lead times and price increases for some semiconductor components by building larger inventories of critical parts. The company stated its exposure to the Middle East is limited, accounting for less than two percent of annual net sales. Investors will watch for continued margin strength in the company's next earnings report.
This article is for informational purposes only and does not constitute investment advice.
