HMS Networks AB: Interim report: January - June 2026

Second quarter

• Order intake increased by 20% to SEK 979 m (816). Organically, order intake increased by 15%
• Net sales increased by 18% to SEK 991 m (843). Organically, net sales increased by 12%
• EBITA reached SEK 266 m (167), equal to a 26.8% (19.8) margin
• EBIT reached SEK 238 m (138), equal to a 24.0% (16.4) operating margin
• Profit after tax totaled SEK 155 m (84) and basic earnings per share were SEK 3.10 (1.67)
• Profit after tax adjusted for amortization of excess values from acquisitions (adjusted profit after tax) totaled SEK 183 m (113) and adjusted basic earnings per share were SEK 3.65 (2.24)
• Cash flow from operating activities amounted to SEK 334 m (201)
• Minority investment in AI company Ekkono

First six months

• Order intake increased by 19% to SEK 2,087 m (1,746). Organically, order intake increased by 12%
• Net sales increased by 13% to SEK 1,962 m (1,733). Organically, net sales increased by 14%
• EBITA reached SEK 530 m (372), equal to a 27.0% (21.5) margin
• EBIT reached SEK 475 m (313), equal to a 24.2% (18.1) operating margin
• Profit after tax totaled SEK 318 m (199) and basic earnings per share were SEK 6.33 (3.96)
• Profit after tax adjusted for amortization of excess values from acquisitions and non-recurring items (adjusted profit after tax), totaled SEK 373 m (258) and adjusted basic earnings per share were SEK 7.42 (5.15)
• Cash flow from operating activities amounted to SEK 584 m (388)
• Acquisition of Molex's industrial communications business

CEO comments

PROFITABLE GROWTH CONTINUES
Continued strong demand enabled HMS to deliver another record quarter, both in terms of revenue and operating profit. Order intake increased by 20% to SEK 979 million (816), corresponding to organic growth of 15%. Investments in data centers continue to be a key growth driver for our customers across multiple stages of the value chain, most notably reflected in the sustained strong demand from the semiconductor industry. We believe that reported order intake accurately reflects underlying market demand. The order pull-forward effect reported in the first quarter, primarily related to the Molex acquisition, was not evident in the second quarter.

Revenue reached a record high SEK 991 million (843), corresponding to organic growth of 12%. All divisions contributed positively to the development.

Gross margin amounted to 63.8% (61.8), supported by a weaker Swedish Krona, a favorable product mix, and a lower impact from tariffs.

Operating expenses increased as planned, reflecting previously communicated development initiatives and investments to strengthen the organization. Total operating expenses amounted to SEK 403 million (383), representing an organic increase of 9%. Despite these increased investments, EBITA improved significantly to SEK 266 million (167), corresponding to an EBITA margin of 26.8%. This represents an improvement in earnings of 59% compared with the previous year.

Cash flow also developed very strongly, amounting to SEK 334 million (201). This contributed to reducing net debt to 1.74x (3.12) EBITDA excluding IFRS 16, providing us with a solid position to continue our growth journey, both organically and through acquisitions.

ALL REGIONS DELIVER DOUBLE-DIGIT GROWTH - APAC LEADS THE WAY
We experienced broad-based growth during the second quarter, with APAC delivering the strongest performance as order intake increased by 35%. EMEA also reported solid growth of 15%, although demand from the automotive industry remained hesitant. The Industrial Network Technology division (INT) stood out with continued broad-based demand growth and organic order intake growth exceeding 20% for the fourth consecutive quarter.

INDUSTRIAL NETWORK TECHNOLOGY INVESTS IN AI
During the quarter, HMS continued the rollout of AI-based tools across the organization. AI is becoming an increasingly integrated part of our development activities and is being utilized extensively to enhance productivity, quality, and innovation within our engineering teams.

The INT division also made a strategic investment by acquiring a minority stake in the Swedish AI company Ekkono. Through this collaboration, Ekkono's AI technology is being combined with HMS's industrial communication solutions. Our ambition is to deliver intelligent capabilities directly into customers' OEM devices, enabling machine data not only to be communicated but also analyzed and transformed into actionable insights. Through this partnership, we are strengthening our position in industrial digitalization while creating new opportunities to help customers improve efficiency, performance, and competitiveness in an increasingly data-driven industrial landscape.

ECOVADIS GOLD MEDAL CONFIRMS SUSTAINABILITY PROGRESS
In June, HMS was awarded the EcoVadis Gold Medal. This places HMS among the top five percent of all companies evaluated globally and among the top one percent within the communications equipment manufacturing industry.

The award reflects the long-term and systematic efforts undertaken throughout the organization. Key areas of improvement behind the result include enhanced transparency and more comprehensive sustainability reporting, strengthened governance and management systems, a more structured approach to sustainable supply chains, and further development of processes related to business ethics, compliance, and information security. During the year, HMS has also continued to strengthen its efforts in environmental and climate initiatives, health and safety, employee development, diversity, and human rights.

The Gold Medal confirms that HMS continues to advance its sustainability agenda in line with increasing expectations from customers, investors, and other stakeholders, while sustainability becomes ever more integrated into the long-term value creation.

CONTINUED PRICE INCREASES AND LONGER LEAD TIMES FOR MEMORY COMPONENTS
As a result of substantial investments in data centers and AI infrastructure, prices and lead times for memory components and certain other semiconductor components continue to increase. We expect the effects to become somewhat more noticeable during the second half of the year, and certain delivery challenges, as well as a limited adverse impact on gross margin, cannot be ruled out. To mitigate these effects, our supply chain organization is working proactively to secure access to critical components.

OUTLOOK
Demand during the second quarter was solid and broad across HMS's major markets. Despite an environment characterized by several uncertainties, many of our industrial customers continue to execute on their investment plans and business activities. As previously, we remain positive regarding the growth potential in a medium-term perspective, while uncertainty persists related to the macroeconomic environment, developments in the Middle East, and global trade. In the longer term, we expect that incentives and trends towards more regionally diversified industrial production in North America, Europe, China and Southeast Asia will increase demand for automation, digitalization and communication solutions for industrial applications, which is positive for HMS. We continue to see good opportunities to win new customers and to further grow business with existing customers through continued investments in product development, innovation and sales. Creating profitable growth, both organically and through acquisitions, remains our top priority.

Halmstad July 14, 2026

Staffan Dahlström
Chief Executive Officer

For more information, please contact:
Staffan Dahlström, CEO HMS, [phone]
Joakim Nideborn, CFO HMS, [phone]

This information is such that HMS Networks AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CEST on July 14, 2026.

HMS Networks AB (publ) is a market-leading provider of solutions in Industrial Information and Communication Technology (Industrial ICT) and employs over 1,100 people. Local sales and support are handled through over 20 sales offices all over the world, as well as through a wide network of distributors and partners. HMS reported sales of SEK 3,577 million in 2025 and is listed on the NASDAQ OMX in Stockholm in the Large Cap segment and Telecommunications sector.