Second quarter 2026 compared to 2025, group
- Net sales amounted to SEK 95.4 million (75.6), corresponding to a change of 26% (25).
- Growth adjusted for foreign exchange (FX) amounted to 28% (33).
- Software revenue amounted to SEK 63.9 million (42.1), corresponding to 67% (56) of net sales.
- The order book amounted to SEK 959.7 million (298.3) at the end of the quarter.
- Operating profit (EBIT) amounted to SEK 13.2 million (-12.0), corresponding to an EBIT margin of 14% (-16).
- Net income for the period amounted to SEK 15.1 million (-9.0).
- Earnings per share before dilution amounted to SEK 0.39 (-0.24) and diluted to SEK 0.39 (-0.24).
First six months 2026 compared to 2025, group
- Net sales amounted to SEK 155.4 million (166.5), corresponding to a change of -7% (22).
- Growth adjusted for foreign exchange (FX) amounted to -3% (25).
- Software revenue amounted to SEK 95.8 million (92.4), corresponding to 62% (55) of net sales.
- Operating profit (EBIT) amounted to SEK -7.3 million (-3.0), corresponding to an EBIT margin of -5% (-2).
- Net income for the period amounted to SEK -2.7 million (-18.4).
- Earnings per share before dilution amounted to SEK -0.07 (-0.48) and diluted to SEK -0.07 (-0.48).
A word from the CEO:
Towards the end of the quarter, we signed the largest contract in the Company's history, valued at approximately SEK 700 million, within the UK defence sector. In addition, performance developed in line with our expectations and previous communication. Net sales increased by 26 percent to SEK 95.4 million (75.6), software revenue increased by 52 percent, and EBIT amounted to SEK 13.2 million (-12.0). We have taken several steps in the right direction, but there is still work ahead. For the first half of the year, net sales remain below the previous year, and improving cash flow continues to be a key priority.
Quarter highlights
As expected, military exercise activity returned to more normal levels during the quarter, positively impacting revenue. Software revenue amounted to SEK 63.9 million (42.1), representing 67 percent (56) of net sales. Order intake during the quarter amounted to SEK 686 million, while the order book reached SEK 960 million at the end of the period. This was also the first quarter to fully reflect the effects of our cost-saving programme, equivalent to approximately SEK 40 million on an annual basis, with total costs around 10 percent lower than in the corresponding quarter last year. Combined, this resulted in EBITDA of SEK 26.2 million (-1.2) and an EBIT margin of 14 percent (-16). This confirms that the measures are having the intended effect, although a single quarter does not constitute a trend.
The Resilience segment continues to be managed selectively, focusing on existing customers within our core market. Our objective remains for the segment to be cash flow positive during 2026. Expert Services delivered stable performance, with revenue of SEK 17.0 million (16.7) and continued strong demand within total defence and security across the Nordic region and the UK.
Our largest contract to date
On 29 June, we signed the largest contract in 4C's history: a contract within the UK defence sector worth GBP 55 million, approximately SEK 700 million, running from 2026 to 2041. The agreement is a fixed-price contract with annual indexation and covers the delivery of our Exonaut software platform together with associated development and support services for military training and exercising. It reflects the trust we have built over many years within the UK defence community. We are extremely proud of this agreement. A commitment of this duration is built on close collaboration between multiple parties, and we look forward to seeing the partnership develop throughout the life of the contract.
The Development of Exonaut
Today, AI is an integrated part of our development process, from code generation and testing to security reviews, and one of the key drivers behind an important milestone we introduced during the quarter: moving from two major software releases per year to a continuous delivery model, where new functionality is made available for customers to test on an ongoing basis. We are still in the early stages of this journey, but we are already seeing the benefits, with a significantly higher release pace without a corresponding increase in the size of the organisation. This transition shortens the time from user feedback to delivered capability while reducing delivery risk in long-term engagements, an important prerequisite as our contracts become larger and longer. Over time, AI will also become an increasingly integrated part of the Exonaut product offering itself.
Cash flow and financing
Improving cash flow remains a key priority, and we are actively working on this across the business. To strengthen working capital and ensure liquidity, we are carrying out a fully secured rights issue of approximately SEK 54 million, with the subscription period running from 9 to 23 July. The rights issue will also reduce shareholder loans through set-off and provide additional resources to strengthen our defence sales organisation. The fact that the rights issue is fully secured by existing shareholders and external investors represents an important vote of confidence in the work ahead. In addition, an over-allotment option of up to SEK 20 million is available in the event of oversubscription, supported by subscription commitments from external investors.
Market outlook and Priorities
European defence investments continue to increase and are increasingly directed towards capability development, training and exercising, the core of our offering. At the same time, implementation remains uneven. Procurement capacity continues to be a bottleneck in several markets, lead times remain long, and individual contracts continue to shift between quarters, meaning volatility in our financial performance is likely to persist. In the United States, decision-making cycles remain prolonged, and the third quarter will be important for developments in the region ahead of the midterm elections and the next round of budget negotiations.
Our priorities remain unchanged: delivering value to our customers as defence investments continue to accelerate, strengthening profitability and cash flow, and growing with a clear focus on the Defence segment. This quarter demonstrates that we are moving in the right direction, but we are not there yet. The task now is to continue executing our strategy, quarter by quarter.
Jonas Jonsson
CEO
For further information, contact:
4C Group AB (publ)
Jonas Jonsson, CEO
Veronica Wallin, CFO
investor.relations@4cstrategies.com | + 46 (0) 8 522 27 900
Certified Adviser: Tapper Partners AB
About 4C Strategies
4C Strategies is a leading global provider of organisational readiness and training management solutions for customers in the defence, public and corporate sectors. 4C Strategies provides an integrated offering of organisational readiness and training management solutions in mission-critical environments, consisting of its software platform Exonaut as well as expert services and software-related services. Exonaut complies with the strictest demands on security and data integrity and is accredited by NATO. From its offices in the Nordics, the UK the US and Australia, 4C Strategies serves over 150 customers, including some of the world's most high-profile public institutions, global enterprises and several NATO allied armed forces. 4C Strategies was founded in Sweden in 2000, and is headquartered in Stockholm. 4C Strategies is the operational brand within 4C Group AB (publ), which is listed on Nasdaq First North Premier Growth Market under the ticker "4C".
investors.4cstrategies.com
This information is information that 4C Group 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 2026-07-09 07:50 CEST.
