January-March 2026
- Net sales increased by 30% to SEK 151m (116), organic growth amounted to 25% during the quarter
- Operating profit amounted to SEK 43m (24), operating profit adjusted for items affecting comparability, consisting of legal costs, amounted to SEK 50m (33)
- Operating margin increased to 28.6% (20.9), operating margin adjusted for items affecting comparability, consisting of legal costs, was 33.2% (28.8)
- Cash flow from operating activities amounted to SEK 18m (36)
- Earnings per share, diluted, amounted to SEK 1.09 (0.71)
Strong start to the year
In the first quarter of the year, we achieved sales of SEK 151m (116), an increase of 30 percent. We delivered an organic growth of 25 percent, with strong growth in all categories. The newly acquired Koroyd contributed with 18 percent growth in the quarter. Exchange rate fluctuations had a negative impact on revenue growth of 13 percent.
Our scalable business model meant that our underlying profitability improved significantly in the period. However, the impact of the strong Swedish krona and legal costs continued to impact negatively in the quarter. Operating profit for the quarter amounted to SEK 43m (24), and the operating margin increased to 28.6 percent (20.9). Adjusted operating profit, excluding the impact of the legal dispute that Mips is involved in, was SEK 50m (33), and the adjusted operating margin amounted to 33.2 percent (28.8). Operating cash flow amounted to SEK 18m (36).
As previously communicated, Mips is involved in a patent dispute in which one of Mips' customers in the US is a party. Mips is not a party to the lawsuit, but since the dispute concerns areas where Mips has intellectual property rights that are an important cornerstone of our strong brand, Mips has chosen to get involved. Mips' own intellectual property rights are not part of this dispute. We intend to continue supporting our customer in this dispute, which we expect will continue throughout 2026. To facilitate better follow-up of the underlying operations, we have decided to classify these costs as items affecting comparability from 2025 onwards. Legal costs for the quarter amounted to SEK 7m (9).
Continued market share wins
We are pleased with our progress and, above all, with how we continue to gain market share and strengthen our position with both new and existing customers, which is by no means a given in a challenging business environment. The European market, in particular, continued to perform well for us, and we see that our customer penetration is developing in line with our long-term strategic plan. Our customers' sales to end customers were also strong during the quarter, and we expect this trend to continue going forward. Several factors are driving the overall market trend, such as increased bicycle commuting and the rise in electric two-wheeled vehicles.
Our sales to the US continued to perform well, with solid organic growth during the quarter. This was despite the fact that our customers continue to see consumers being slightly more cautious about purchases. Our growth continues to be driven by our increasing market share and customer penetration, including helmets in the lower price segments. We did deliver organic sales growth to Asia and Australia in the quarter and it is good to see that sales are starting recover after a soft period, especially in the Chinese market.
Limited impact from the conflict in the Middle East to date
The impact of the ongoing conflict in the Middle East has been limited during the quarter. At this point, it is difficult to assess the potential outcome of the conflict and the impact it may have on consumer demand going forward.
We have not yet seen any material impact on the supply chain due to the ongoing conflict, primarily because Mips Group's customers are responsible for shipping costs associated with delivery. Neither have we yet experienced any actual price increases for the materials we use, but many of our suppliers have indicated that a prolonged conflict will result in higher prices. If cost increases become substantial for Mips, we intend to pass these costs on to customers.
Koroyd - integrated into the Group in the first quarter
With the acquisition of Koroyd, which we completed at the end of 2025, we now have a complementary product portfolio in helmet safety solutions and have also created new strategic openings with exciting opportunities to enter adjacent categories such as body protection, protective gloves, and footwear. The Koroyd brand is reported as part of the Group's sales within our existing category structure, as Koroyd has historically already followed the logic of the three categories-Sports, Motorcycle, and Safety-for which Mips reports sales separately, and has been included in the category reporting starting the first quarter of 2026.
Helmet category Sports - strong performance in both the European and US markets
In the Sports category, we achieved total growth of 24 percent in the quarter. Organic growth amounted to 28 percent. The positive trend in the bike sub-category continued during the quarter, marking our tenth consecutive quarter of growth in this important market. The main driver behind the increase is the development of the European market, but it is also encouraging to see that cycling in the US has steadily increased over the past year, primarily driven by bicycle commuting.
In the snow sub-category, we are seeing continued positive performance despite a challenging season, particularly in the US. In the US winter sports market, sales to end customers were weaker as snowfall at many of the major ski resorts in the western US was lower than it has been for many years. In the European market, performance was strong, particularly at the start of the season when the majority of equipment is purchased for of the season. For Mips as a company, the strong sales growth in the European snow market was primarily driven by our customers continuing to increase the penetration of Mips' technology within their product ranges.
The Winter Olympics were held during the quarter, with a large proportion of the athletes' helmets equipped with Mips Group's technologies. We were especially happy to see our Mips ambassador Mikaela Shiffrin win her third Olympic gold medal and also secure her sixth overall World Cup victory and her ninth overall Slalom Cup victory.
During the quarter, we also held our first joint brand event in Alta Badia, Italy, with Mips and Koroyd, which highlighted the synergies of promoting both of our brands together cost-effectively. In March, we also participated in the year's first consumer-focused cycling event, Cyclingworld in Düsseldorf, which drew over 50,000 visitors. The event provided a valuable opportunity to meet German cycling enthusiasts, and we noted a high level of brand awareness in the important German market.
Helmet category Motorcycle - continued increase in sales
In the Motorcycle category, we achieved total growth of 33 percent in the quarter. Organic sales growth amounted to 16 percent. The positive trend was particularly strong in the off-road sub-category.
It is gratifying to see that our hard work and new innovations are beginning to bear fruit in the on-road motorcycle as well, and we believe that this will contribute to a more balanced customer base in the long term by including more on-road motorcycle helmets. We will continue the high pace of launches of on-road motorcycle helmets with leading brands throughout the year.
In the off-road sub-category, we have extended our partnership with MXGP, the world motocross tour. This provides us with a stronger brand communication platform and allows us to reach a highly dedicated audience. Our partner, the Honda Racing Team, has also added two new drivers, Jeffrey Herlings and Tom Vialle, to the team; both have had a strong start to the season and are contenders for the overall World Cup title. We have also initiated a partnership in the American Supercross series with Troy Lee Design, Red Bull, and the Ducati Factory Racing Team, which further raises our visibility in the US.
With our initiatives in MXGP, our partnership with Spanish Moto GP star Joan Mir, and two of the top motocross teams, we have a stronger platform than ever in the Motorcycle category, which will help us further strengthen our position in this category.
Helmet category Safety - significant boost to the category thanks to Koroyd
In the Safety category, we are seeing momentum start to return following a challenging period marked by customer caution due to uncertainties surrounding US tariff developments in 2025. Total sales in the category increased by 135 percent in the quarter. The organic sales growth amounted to 6 percent. Historically, the first quarter is the slowest quarter in terms of sales within the Safety category, and our assessment is that we will see significantly higher sales in this category during the year, driven partly by the inclusion of Koroyd, but also by the development of Mips' product portfolio, with many helmet manufacturers now investing in a number of new product launches following a period of uncertainty related to tariffs.
Thanks to the Koroyd acquisition, we can now offer a broader and more comprehensive product portfolio including gloves and body protection, and we will also be rolling out many of our newly developed products, particularly through the launch of "full brimmed" helmets in the US. This is the largest market for premium helmets, and the market that Mips as a group is primarily focused on.
Positive outlook for 2026 despite a turbulent global environment
We have just left behind a turbulent-yet, for Mips, successful-2025, and we also anticipate that 2026 will bring similar challenges to the global economy. However, we are better equipped than ever to navigate these challenges and deliver results despite a challenging global environment.
We are confident that we will continue to grow across all our categories, gain market share, and further strengthen our position in the market. We are seeing significant interest from our customers in starting new development projects. Our innovation pipeline is larger than ever, and with Koroyd, we have the opportunity to become even more relevant to our customers and enter entirely new areas for Mips. With this momentum, I look forward to an exciting year, even in these continuing uncertain times.
Stockholm, April 2026
Max Strandwitz
President and CEO
For more information, please contact:
Max Strandwitz, President and CEO
Max.Strandwitz@Mipsprotection.com
tel +46 709 61 17 54
Karin Rosenthal, CFO
Karin.Rosenthal@Mipsprotection.com
tel +46 768 34 63 66
About Mips Group
Mips Group is a global safety company, based in science, operating with an ingredient brand business model that includes the brands Koroyd and Mips. The Group develops innovative safety solutions that are integrated into helmets and other protective products by renowned brands worldwide. Koroyd is a pioneer in advanced impact protection technology based on aerospace safety research, while Mips is a leader in helmet-based safety backed by over 30 years of research and development in collaboration with the Swedish Royal Institute of Technology and Karolinska Institutet. Koroyd SARL is seated in Monaco, Mips AB is headquartered in Stockholm and listed on Nasdaq Stockholm. For more information, visit www.koroyd.com and www.mipscorp.com.
This information is information that Mips AB 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 07:30 CEST.
