Overview

• Swedish rugged IT provider's Q4 revenue rose 87% yr/yr, driven by organic and acquired growth

• Company's Q4 adjusted EBITA margin improved to 19.3% from 17.0%

• MilDef won significant contracts, including SEK 52 mln deal with L3Harris

Outlook

• MilDef expects continued demand amid geopolitical uncertainties

• Company plans production capacity increase by 50% by summer 2026

• MilDef sees potential to speed up development through capacity investments

Result Drivers

• ORDER INTAKE - Q4 order intake increased by 30% to SEK 1,005 mln, driven by new contracts including a major deal with L3Harris

• ACQUISITION IMPACT - Acquisition of roda negatively impacted Q4 gross margin, reducing it to 43.1% from 47.4%

• CAPACITY EXPANSION - MilDef expanded production facilities to meet increased demand, including a new facility in Stockholm County

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for MilDef Group AB is SEK201.00, about 64.2% above its February 4 closing price of SEK122.40

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nWkr1sCWXb

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)