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 ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
06/03/2026
Ten years after its release, South African hip-hop artist Kwesta's DaKAR II is still making waves. With 51.8 million streams on Spotify, the album continues...
06/03/2026
06 Mar 2026
VEON and JazzWorld Advance Pakistan's Digital Financial Future ...
06/03/2026
Friday 6 March 2026
Teaser revealed for Saturday Night Live UKTurn on cookies to view this content. Go to Privacy options and select Accept All'.
Privacy...
06/03/2026
Discover how the F1 sound team turned a real Grand Prix into a cinematic experience.
Director Joseph Kosinski and his team worked directly with the Formula On...
06/03/2026
Arvato Systems Joins Initiative D21 e. V.
Shaping digital transformation together
Collaboration in Germanys largest network for the digital society
Membersh...
06/03/2026
The Trustworthy Accountability Group (TAG) is a global initiative dedicated to c...
06/03/2026
We are deeply saddened to hear the very sad news of the death of our friend and colleague, John McHugh. John was an exceptionally talented creative leader who s...
06/03/2026
First exclusive look at RT 's promo as Ireland prepare to take on Czechia
Every Moment, Every Generation
https://youtu.be/2ijo96EadLU
36 years after Geor...
05/03/2026
A little over a year ago, Spotify introduced the quarterly Creator Milestone Awa...
05/03/2026
Rohde & Schwarz enables rapid validation of next-gen Wi-Fi 8 networking platform...
05/03/2026
Rohde & Schwarz acquires Software Radio Systems (SRS), specialists in software d...
05/03/2026
Celebrating 21 Years of the RT Choice Music Prize
RT Choice Music Prize
In association with IMRO and IRMA
RT Choice Music Prize Irish Album of the Year 2...
05/03/2026
Thursday 5 March 2026
Sky News secures ninth News Channel of the Year award as ...
05/03/2026
Thursday 5 March 2026
Sky Sports launches first ever nationwide creator competi...
05/03/2026
SAN JOSE, Calif. - March 5, 2026 - At the 2026 NAB Show, Harmonic (NASDAQ: HLIT)...
05/03/2026
Comscore and Yahoo DSP Partner to Advance CTV Political Advertising with Proximi...
04/03/2026
For many fans, a song's backstory can be just as compelling as the final pro...
04/03/2026
In 2006, Spotify was founded on the belief that technology could bring artists a...
04/03/2026
Spotify is back on the ground for the Houston Livestock Show and Rodeo, and we&#...
04/03/2026
Spotify had an energizing week in Sydney, Australia, filled with powerful conver...
04/03/2026
Earlier this year, we launched Directed By, a documentary-style series that pull...
04/03/2026
KT and Rohde & Schwarz to showcase AI-enhanced radio transmission performance In a joint 6G AI proof-of-concept demonstration, the CMX500 one-box tester from ...
04/03/2026
Luxembourg, 3 March 2026 - SES S.A. has today published its 2025 Annual Report, following the announcement of the company's full year financial results for ...
04/03/2026
Luxembourg, March 3, 2026 - SES, a leading space solutions company, along with I...
04/03/2026
04 Mar 2026
VEON Partners with GSMA Innovation Fund to Accelerate Digital Innov...
04/03/2026
04 Mar 2026
VEON's Beeline Uzbekistan and Rakuten Symphony Partner for Open...
04/03/2026
Wednesday 4 March 2026
Sky Sports unveils plans for 2026 Formula 1 coverage
Sky Sports is preparing for one of the most highly anticipated F1 seasons in recen...
03/03/2026
For many, finding time or headspace to pick up a book can feel out of reach, but...
03/03/2026
Rohde & Schwarz and Realtek demonstrate first test solution for Bluetooth LE Hi...
03/03/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
03/03/2026
Luxembourg, 2 March 2026 -- SES S.A. fully consolidates Intelsat from 17 July 2025 and announces financial results for the year ended 31 December 2025
FY25 Pe...
03/03/2026
RT is proud to support a rich and diverse programme of arts and cultural events taking place across Ireland throughout March 2026. This month brings a remarkab...
03/03/2026
03 Mar 2026
VEON and MeetKai Expand Collaboration to Explore Sovereign AI Infra...
03/03/2026
Tuesday 3 March 2026
Sky releases official trailer for The Miniature Wife, a Sk...
03/03/2026
Tuesday 3 March 2026
Ryan Reynolds and Rob Mac land first ever live commentary ...
03/03/2026
Tuesday 3 March 2026
The Dyers' Caravan Park reopens for a second season after a hit launch on Sky
The Dyers' Caravan Park
JPEG (510KB)
Sky books a ...
03/03/2026
Harmonic's cOS Virtualized Broadband Platform Simplifies Network Operations, Lowers Hardware Dependency and Enables Seamless DOCSIS and Fiber Growth SAN JO...
03/03/2026
Comscore to Announce Fourth Quarter and Full Year 2025 Financial ResultsRESTON, VA, March 3, 2026 Comscore, Inc. (Nasdaq: SCOR), a trusted partner for plannin...
03/03/2026
Self-taught on iMovie, Hanagami transitioned to Final Cut Pro in 2009, discovering that professional tools could give him full creative control over how his wor...
03/03/2026
RT Media Sales has announced Spry Finance has renewed it's sponsorship of M...
02/03/2026
Rohde & Schwarz demonstrates FR1-FR3 carrier aggregation, advancing 6G readiness Rohde & Schwarz and Qualcomm Technologies, Inc. have reached another pivotal ...
02/03/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, and Arqit Quantum Inc. (Nasdaq: ARQQ, A...
02/03/2026
Luxembourg, February 26, 2026 - SES and Africa Mobile Network (AMN) have expande...
02/03/2026
Monday 2 March 2026
Saturday Night Live UK announces writing team
L-R: Jonno Johnson; Charlie Skelton; Celya AB; Omar Badawy; Gr inne Maguire; Laura Claxton; ...
First quarter
