First quarter
Net sales for the first quarter reached SEK 616 m (773), corresponding to a decrease of 20%. Currency translations had a negative effect of SEK 3 m on net sales
Order intake was SEK 473 m (682), corresponding to a decrease of 31%
Operating profit reached SEK 130 m (211), equal to a 21.1% (27.4) operating margin. Adjusted operating profit reached SEK 133 m, equal to a 21.6 % adjusted operating margin
Profit after tax totaled SEK 107 m (172) and basic earnings per share was SEK 2.28 (3.70). Adjusted profit after tax totaled SEK 110 m and adjusted basic earnings per share was SEK 2.35
Cash flow from operating activities amounted to SEK 58 m (155)
Last twelve months
Net sales for the last twelve months reached SEK 2,868 m (2,762), corresponding to a 4% increase. Currency translations had a positive effect of SEK 91 m on net sales
Order intake was SEK 2,094 m (2,889), corresponding to a decrease of 28%
Operating profit reached SEK 672 m (725), equal to a 23.4% (26.2) operating margin. Adjusted operating profit reached SEK 698 m, equal to a 24.3% adjusted operating margin
Profit after tax totaled SEK 505 m (568) and basic earnings per share was SEK 10.82 (12.17). Adjusted profit after tax totaled SEK 531 m and adjusted basic earnings per share was SEK 11.38
Cash flow from operating activities amounted to SEK 422 m (506)
Subsequent events
Completed acquisition of 100% of the shares in Red Lion Controls Inc. and Red Lion Europe GmbH as well as certain assets in other jurisdictions ( Red Lion Controls )
Launch of cost saving program to reduce cost and streamline organization
CEO commentsA CHALLENGING QUARTER BRIGHTER FUTURE AHEAD
As expected, the first quarter of the year was weak for HMS. With an order book now back to normal levels, the low order intake also affects invoicing. As we have reported in recent quarters, our customers continue to adjust inventories to normal levels and shorter lead times, which means that our reported order intake does not reflect the underlying demand. We can see some improvements in order intake during the start of April, which is also in line with our expectations.
The quarter's order intake amounts to SEK 473 million (682), corresponding to an organic decrease of 36%. We can see that the quarter's order intake was negatively affected by our customers' inventory adjustments by approximately SEK 180 million. The underlying order intake is estimated at SEK 635 million, which indicates a continued wait-and-see market.
The quarter's net sales amounted to SEK 616 million (773), which corresponds to an organic decrease of 20% compared to the corresponding period last year.
The order book decreased by SEK 137 million and amounts to SEK 641 million at the end of the quarter, which we consider to be a normal level going forward.
Although we see a slight improvement in demand, we are now taking measures to be able to handle a short-term decline in turnover, to protect our operating profit and enable growth investments going forward. We also take advantage of early cost synergies from the acquisition of Red Lion Controls. We are therefore now starting a restructuring program that aims to lower our cost level by SEK 30 million in 2024, with an expected full-year effect of SEK 55 million. The program is expected to affect 45 positions in total, of which 25 are in Sweden. The second quarter is expected to be burdened by restructuring costs of SEK 35 million related to the program.
Our gross margin, burdened mainly by lower volumes and product mix, lands at 62.6% (64.8). During the quarter, we have also cut back on staff in our production to handle the lower demand.
We have already taken certain measures during the quarter to keep our operating costs down primarily by postponing a number of activities. Operating costs amount to SEK 256 million (290) and includes integration and transaction costs of SEK 3 million, related to the acquisition of Red Lion Controls. Organically, operating costs excluding integration and transaction costs decreased by 13%. During the latter part of the year, we will carry out previously postponed activities and will therefore see a slightly higher cost level, despite the above-mentioned cost savings.
The adjusted operating profit in the quarter amounted to SEK 133 million (211), which corresponds to an operating margin of 21.6% (27.4). The quarter's cash flow from current operations amounts to SEK 58 million (155), which is affected by continued increased working capital, mainly related to our relatively large inventory.
STILL WEAK DEVELOPMENT IN EUROPE, BUT TENDENCIES FOR IMPROVEMENT
Although still week, In Europe we see some improvement in order intake compared to the second half of 2024 and we have indications from our customers that the trend should continue in the right direction in the second quarter, and that during the second half of the year expect to see a more clear improvement.
In Asia, primarily driven by Japan, where we have had the biggest impact from pre-purchase orders, we still see weak demand and continued high inventory levels at our largest customers. Here, we expect to receive new order only towards the end of the year.
What is somewhat surprising is the development in North America, which is taking a small step back after a good development at the end of 2023. The slightly weaker order intake in the US is related to the Anybus embedded products, where we still have a couple of our biggest customers holding inventory. Overall, we still see that North America has the prerequisites for a good development over the year.
THE ACQUISITION OF RED LION CONTROLS HAS BEEN COMPLETED
On April 2nd, we gained access to our largest acquisition to date, Red Lion Controls. The acquisition is consolidated from the first of April. Several activities are now underway to realize the sa
Europe Stories
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
09/10/2026
September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026
New Sports Intelligence helps providers better unders...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/10/2026
Three new compact pedals announced
Warm Audio have just introduced a new guitar pedal line-up that offers compact, pedalboard-friendly versions of some of t...
06/10/2026
Drum-replacement tool gets major overhaul
WaveMachine Labs have announced that the latest version of their drum-replacement software is now available, and i...
06/10/2026
Firmware update implements user-requested features
Arturia's stage-going keyboard series has just received a significant update that addresses some of t...
06/10/2026
(4:51 PM) Wiesbaden, October 06, 2026. Based on business performance to date, pa...
06/10/2026
Tuesday 6 October 2026
Official trailer released for The Good Daughter ahead of...
06/10/2026
Savanyu reports getting more gain from the sound system, which he credits to the capsules asymmetrical supercardioid pickup pattern.
Even with less-than-ideal...
06/10/2026
Andrew Trimble delves into the author's Belfast upbringing
Thursday, 8 Octo...
05/10/2026
New multi-pattern LDC revealed
Austrian Audio have announced the upcoming launch of a new multi-pattern large-diaphragm capacitor mic that occupies the midd...
05/10/2026
Software gains Tonex Board rig support
When IK Multimedia launched the Tonex Board, they mentioned that it would soon be followed by a significant update to...
05/10/2026
Offers a modern take on classic chorus effects
fedDSP's latest creation has been designed to offer a modern take on the classic chorus effect, combining...
05/10/2026
FOX Deepens Investment in the Creator Economy, Expanding Leadership Team to Acce...
05/10/2026
RT will provide comprehensive coverage and analysis of Budget 2027 across online, radio and television on Tuesday 6 October, with extensive reporting and analy...
04/10/2026
Dedicated streaming mic gets an overhaul
Following on from the success of their dedicated streaming microphone, the MV6, Shure have announced the launch of ...
02/10/2026
v1.9.3 introduces AUv3 support
Roland have just released an update that kits their free iPad-based software synth out with AUv3 support, meaning it can now ...
02/10/2026
Dolby Atmos support, AI-powered stem separation & more
The latest version of MOTU's DAW software is now available, and marks a major step forward with t...
02/10/2026
Portable DAC created in collaboration with Steve Levine
British hi-fi experts iFi audio have unveiled a new Master Tuned variant of their praised iDSD GR2 p...
02/10/2026
In our latest blog, Tim Pearson looks at streaming piracy from a different lens, focusing on digital trust, consumer risk, and the future of subscriber protecti...
02/10/2026
Featuring performances recorded in Cork, Kilkenny, Wesmeath and Dublin culminati...
02/10/2026
Friday 2 October 2026
Crystal Lake, a Friday the 13th' prequel series, com...
02/10/2026
Friday 2 October 2026
Sky VIP helps families celebrate the Christmas season wit...
02/10/2026
How the fertility sector in Ireland remains unregulated
Undercover filming reveals how without proper regulation the promotion of controversial fertility treat...
02/10/2026
Transforming Homes, Transforming Lives
Presenter Baz Ashmawy and his team take on four life-changing builds across Kildare, Limerick, Wicklow and Offaly in the...
01/10/2026
Third collaboration with celebrated composer
Spitfire Audio have once again teamed up with Grammy-nominated composer, producer and technologist BT, creating...
01/10/2026
FL Studio gets dedicated grid controller
Novation have teamed up with FL Studio developers Image-Line to create another dedicated controller for the popular...
01/10/2026
Six new USB interfaces introduced
Universal Audio's USB audio interface line-up has just been refreshed, gaining six new models aimed at musicians, prod...
01/10/2026
Siretta's SNYPER-5G cellular network analyser has been shortlisted for the IoT Global Awards 2026.
The IoT Global Awards recognise products, services and o...
01/10/2026
Mesh Broadcast Services Fits Big-Truck Audio Power into Compact Eclipse Unit with Calrec Argo M Canadian OB company Mesh Broadcast Services has fitted its Eclip...
01/10/2026
X-Rite Pantone Launches Spectura to Advance Connected Color Quality from Lab to ...
01/10/2026
Thursday 1 October 2026
Nominees revealed for 2026 Sky Arts Awards
Current slide, 0 0, undefined1
0
Irish National Opera and Jennifer Walshe: MARS
Jacob Al...
01/10/2026
Vital TV antenna replaced at SudburyHelicopter and broadcast engineers work together to upgrade TV services for 1.5M in the East
--
Share to Linkedin
Octobe...
01/10/2026
Arqiva appoints Simon Duffy as ChairSimon Duffy joins as Chair effective 01 October 2026
--
Share to Linkedin
October 1, 2026
Press Office
01 October 2026...
01/10/2026
Season 4 of the multi-award-winning hit entertainment series The 2 Johnnies Late Night Lock In is back, serving up another round of unpredictable laughs, unforg...
01/10/2026
New season begins Sunday, 4 October at 6pm on RT lyric fm and RT Listen
RT lyric fm's arts and culture documentary series The Lyric Feature returns on S...
01/10/2026
RT is proud to continue its commitment to supporting and celebrating the arts across Ireland this October, highlighting a vibrant programme of theatre, music, ...
30/09/2026
Add an envelope generator to any plug-in
Sync Audio's latest creation is a handy utility plug-in that can be used to combine and modulate other effects ...
30/09/2026
All-analogue tape-style drive joins Series A
Strymon's reputation was built on their digital knowhow, so many were surprised (and intrigued) when they a...
30/09/2026
Two new expansion packs released
Sonuscore have just introduced two new expansion packs for The Pulse, its production engine instrument for modern cinematic...
30/09/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
30/09/2026
Luxembourg, September 30, 2026 - SES and Sky have extended their long-standing partnership in a new multi-year agreement for direct-to-home (DTH) satellite serv...
30/09/2026
New Solution Expands Harmonic's Network Intelligence Portfolio and Brings Comcast-Developed Fiber Monitoring Technology to Broadband Operators, Providing Re...
30/09/2026
How to Shop Well Now starts Monday at 9.35pm
on RT One and RT Player
On the...
29/09/2026
Two new plug-ins launch alongside updated bundles
Zynaptiq have just announced the launch of two new plug-ins, alongside new and improved versions of two of...
29/09/2026
All-in-one bus processor revealed
Wes Audio's ng product range has come a long way since it was first introduced, and now includes a tasty selection of ...
29/09/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
29/09/2026
CMA Imaging, Sun Chemical, and X-Rite Pantone Help Brands Accelerate Metal Packa...
29/09/2026
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN, OR AT ANY ADDRESS IN, THE UNITED STATES OF AMERICA, ITS TERRITO...
First quarter
