Hms Networks Ab (publ) Stock Earnings Reports

HMS Networks reported a strong Q2 2026 with net sales of SEK 991 million (organic growth 12%, total +18% including M&A and currency). Order intake was robust (organic +15%, total +20%) with APAC particularly strong (+35%). EBITDA reached a record SEK 266 million and an EBITDA margin of 26.8%, above the company target of 25%. Operating cash flow was excellent at SEK 334 million for the quarter (SEK 584 million year-to-date), helping reduce leverage to 1.74x net debt/EBITDA (pre-IFRS16). Growth was broad-based across divisions; IDS and I&T showed double-digit organic growth and healthy margins (IDS ~27.5% EBITDA margin; I&T >30%). Management highlighted data center-related demand (including semiconductor OEMs and automation suppliers) as a key driver, while noting longer lead times and rising prices for memory and some semiconductors that could create modest margin pressure in H2. The company is increasing R&D and organizational investment, completed a small strategic minority investment in embedded-AI firm Ekkono, received an EcoVadis Gold rating, and continues to pursue M&A selectively. Management expects gross margin to normalize slightly below the Q2 peak (guidance: likely still north of 62% but not necessarily above 63%) and indicated the current cost run-rate and R&D activation are representative for the rest of 2026.