Financial performance in January - March
• Sales amounted to SEK 962 (1,003) million. Organic growth was -6%, currency and acquisition adjusted.
• Operating profit was SEK 84 (93) million. Adjusted operating profit was SEK 88 (100) million, adjusted for revaluations of operating assets and liabilities in foreign currencies and non-recurring items.
• The operating margin amounted to 8.7% (9.2%). The adjusted operating margin was 9.1% (10.0%).
• Profit after financial items was SEK 65 (82) million.
• Profit after tax amounted to SEK 52 (65) million, corresponding to SEK 1.83 (2.27) per share.
• Adjusted for items affecting comparability, such as acquisition-related payments and investments in the property in Torsby, Sweden, operating cash flow amounted to SEK 46 (178) million. Total cash flow after investments amounted to SEK -776 (156) million, or SEK -27.18 (5.48) per share.
CEO's comment - With our acquisition of STI, we become one of Europe's larger defence industry subcontractors, which gives us a platform to keep building on. We view this acquisition as strategically vital and transformational for the whole of NOTE.
" At the end of the quarter, we completed our acquisition of STI, the UK's leading EMS partner for the defence industry, which we view as transformational for the whole of NOTE. A strategically vital acquisition that complements our existing structure and strengthens our offering to both existing and new defence customers across Europe. We add several of Europe's leading defence corporations to our established Security & Defence partnerships-a strategic segment for NOTE.
Sales for the quarter were SEK 962 million, somewhat above the interval we reported in our outlook for the quarter. We expected a slow start to the year, and several of our customers anticipated continued market hesitancy related to an uncertain business environment. Security & Defence is the customer segment with the strongest underlying demand. With market demand and the ongoing ramp-up in the segment, we're continuing to take strategic steps to further consolidate our long-term positioning jointly with our customers.
We achieved an underlying operating margin of 9.1% in the quarter, which was somewhat above the interval we presented in our outlook. Growth brings profitability, and we are aware that when market uncertainty restricts growth, this does have some negative impact on our operating margin. We have also made a deliberate decision to strengthen our investments in the sales organisation to up the tempo of winning business.
NOTE has a strong financial position and its equity to assets ratio was around 35% at the end of the quarter. We have generated high operating cash flows in recent years and expect this to continue in the current year. Operating cash flow for the quarter was SEK 46 million, limited by lower volumes and an additional increase to working capital.
Although the start of the year was characterised by caution, we remain confident of progress going forward. Our order backlog for the current year was at the end of the quarter 11% higher than the corresponding point of the previous year, in like-for-like terms. Our view for the full year 2026 remains that we expect a gradual improvement through the year. We can also add the volumes of our acquisition STI.", says Johannes Lind-Widestam, CEO and President.
NOTE's Interim Report for Q1 is now available in PDF format on the corporate web site, www.note-ems.com, and attached to this message. Today at 10.00 CET, NOTE organises a live-stream presentation for analysts, media and investors, where CEO and President Johannes Lind-Widestam and CFO Frida Frykstrand presents the report. The Interim Report for January- June will be published on 15 July.
For more information, please contact:
Johannes Lind-Widestam, CEO and President, tel. +46 (0)70 541 7222
Frida Frykstrand, CFO, tel. +46 (0)70 462 0939
About NOTE
NOTE produces PCBAs, subassemblies and box build products. NOTE is a competitive EMS provider and stable business partner to customers with high standards. NOTE's products are embedded in complex systems for electronic control, surveillance and security, for example.
NOTE's business model builds on delivering high end manufacture, custom logistics solutions and consulting for the best possible total cost through long-term customer relationships and partnerships. Its customer offering covers complete product lifecycles, from design to after-sales. Primarily, its customer base consists of large corporations operating on the global market, and enterprises whose main sales are in northern Europe.
NOTE has a presence in Sweden, Finland, the UK, Estonia, Bulgaria and China. Sales over the last 12 months were SEK 3,773 million, and the group has approximately 1,800 employees. NOTE is listed on Nasdaq Stockholm. For more information, please go to www.note-ems.com.
This information is information that NOTE AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-04-23 08:00 CEST.
