
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
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
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 ...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Purpose Built Monitoring From Live Production to Master Control to OTT, Across On Prem and Cloud Environments
At the 2026 NAB Show (April 19-22, Las Vegas Con...
09/04/2026
Purpose Built Monitoring From Live Production to Master Control to OTT, Across On Prem and Cloud Environments
At the 2026 NAB Show (April 19-22, Las Vegas Con...
09/04/2026
New advances meet surge in demand for broadcast-grade IP migration as C-band spectrum auctions approach
LTN announces major enhancements to its purpose-built g...
09/04/2026
Hitomi Broadcast has expanded its sales team with the addition of Nicola Milburn as Technical Sales Manager. In this role, Nicola will work with customers and p...
09/04/2026
Revolutionary combined solution brings sub-second latency, resilient delivery, and workflow orchestration to global broadcasters and digital platforms
Layercak...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Yospace exceeded 10 billion dynamically stitched ads in a single month, reaching 11.6 billion as ad-supported streaming surged. Driven by a packed global sports...
09/04/2026
Bitmovin has expanded its Live Encoding and Observability solutions to provide true end to end, real time insights across live streaming workflows, from encodin...
09/04/2026
Leyra has announced the launch of Icelandic public broadcaster R V's streaming service on Samsung and LG Smart TVs. R V is the first public broadcaster to d...
09/04/2026
3Play Media, a global leader in video accessibility and localization, today announced an AI Dubbing solution purpose-built for YouTube creators. The company, wh...
09/04/2026
Big Blue Marble, a provider of broadcast-grade, cloud-native video solutions, has been recognized as an Amazon Web Services (AWS) Managed Services Provider (MSP...
09/04/2026
The Professional Darts Corporation (PDC) has officially launched its revamped global streaming service, PDC TV, in collaboration with Cleeng and sports technolo...
09/04/2026
Cleeng, the Subscriber Retention Management (SRM ) pioneer, today announced a raft of new AI agents for its AI Assistant to accelerate decision-making and autom...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
New Charging, Connectivity, and Mounting Solutions Now Available
LAS VEGAS, APRIL 8, 2026 Pliant Technologies will highlight a range of new accessories at th...
09/04/2026
As live production continues its shift to IP, the challenge is no longer adoption it's reliability. At NAB Show 2026 (Booth W2033), Media Links will demon...
09/04/2026
QuickLink, a leading provider of award-winning video production and remote guest contribution solutions, launches its new AI-powered add-on for its StudioPro p...
09/04/2026
The Hive Group has published a new white paper, No Safe Harbor: Why the FCC's Upper C-Band Auction Demands Early Action from Broadcasters ahead of NAB Sho...
09/04/2026
Saranyu Technologies today announced the renewal of its Optimizer VoD subscription with VisualOn. The announcement coincides with NAB Show 2026, taking place Ap...
09/04/2026
RT Sport has announced Brian Fenton will join its Sunday Game GAA punditry panel for the 2026 Championship, featuring across video, audio, online including the...
09/04/2026
Doireann N Ghlac in returns as presenter, with the first episode airing this Friday at 8.30pm on RT One and RT Player
The beloved walking series Tracks & T...
09/04/2026
A timeless story of grit, faith and rebellion takes center stage as Samson: A Ty...
09/04/2026
New technique for synthesizing branched molecules could accelerate the development of future medicines Scripps Research chemists solve a longstanding problem in...
08/04/2026
The deadline to enter the 18th Annual SVG College Sports Media Awards in association with NACDA is rapidly approaching! Submit your entries to this year's c...
08/04/2026
The Pittsburgh product helps lead more than 100 annual ESPN broadcasts as part o...
08/04/2026
Dynamic ad insertion, AI-based technologies, programmatic advertising are some o...
08/04/2026
Seven Fellows Selected for Second Year of Residency in Honor of Social Justice L...
08/04/2026
On March 7, Bad Bunny made history with his first-ever performance in Asia, taki...
08/04/2026
El 7 de marzo, Bad Bunny hizo historia con su primera presentaci n en Asia, subi...
08/04/2026
New channel strip plug-in revealed
The latest plug-in to be added to the Fuse Audio Labs line-up emulates a selection of vintage hardware units, combining c...
08/04/2026
Guitar & bass multi-effects software overhauled
Blue Cat Audio's flagship guitar and bass multi-effects software has recently received a significant upd...
08/04/2026
PanNoir mixer integration, Dolby Atmos Renderer & more
Merging Technologies have just launched Pyramix 16, the latest major update to their renowned DAW sof...
08/04/2026
Applicable Products Part number Description
QUARTZ-22-LTE (EU) Dual Port Dual SIM LTE Router (EU)
QUARTZ-COMPACT-11-LTE (EU) Single Port Compact LTE ...
08/04/2026
The September 19, 2025 YEP Newsletter highlights a group visit to the Academy Museum of Motion Pictures, where participants explored exhibits showcasing the art...
08/04/2026
The L3Harris HBTSS satellite is proven on orbit, successfully demonstrating trac...
08/04/2026
Image Credit: NASA. Artist rendering of a space communications satellite in orbit, representative of the resilient, multiband infrastructure supporting mission ...