High delivery pace and good profitability in the second quarter
Financial development second quarter 2026
- The order intake amounted to SEK 731 million (878), equivalent to a decrease of 17%. This change is entirely attributable to organic development in the second quarter. The order backlog grew by 4% in the second quarter.
- Net sales increased by 64% to SEK 630 million (383). Growth in the quarter was exclusively organic.
- The gross margin amounted to 51.9% (46.0). The margin was positively affected by the sales mix driving revenue for a quarter that saw higher growth for system and integration solutions as well as software.
- Adjusted EBITA amounted to SEK 99.7 million (25.1), equivalent to an adjusted operating margin of 15.8% (6.5).
- Adjusted operating profit (EBIT) amounted to SEK 80.6 million (5.6), corresponding to an operating margin of 12.8% (1.5).
- Free cash flow amounted to SEK 7 million (33). The cash flow impact from good profitability was offset by increased capital tied up to secure deliveries in the upcoming quarters.
Financial development January-June 2026
- The order intake amounted to SEK 1,816 million (1,282), equivalent to an increase of 42%.
- Order backlog as of June 30, 2026 increased by 32% to SEK 4,230 million compared with the same date in 2025 (3,205).
- Net sales increased by 85% to SEK 1,338 million (723). All geographic markets developed well during the first half of the year.
- The gross margin amounted to 47.9% (47.0). The sales mix in the second quarter drove positive development in the gross margin during the first six months of 2026. In percentage terms, growth was good for system and integration solutions as well as software.
- Adjusted EBITA amounted to SEK 221.2 million (41.0), equivalent to an adjusted operating margin of 16.5% (5.7).
- The adjusted operating profit (EBIT) amounted to SEK 183.4 million (12.7), equivalent to an adjusted operating margin of 13.7% (1.8).
- Free cash flow amounted to SEK 167 million (-42). The change is due to good profitability development as well as strong sales growth without adding working capital to the same extent.
- Earnings per share after dilution over the last 12-month period amounted to SEK 5.70 (full year 2025: 3.16).
Summary of significant events in the second quarter, April-June 2026
- MilDef signed a 7-year framework agreement with the Swedish Defence Materiel Administration for delivery of hardware and OneCIS software, for an amount up to SEK 1.5 billion. This framework provides the Swedish Armed Forces with a comprehensive solution for management support systems for increased interoperability and connectivity. Upon signing of the contract a first order was placed regarding a licensing agreement for OneCIS.
- To meet the increased demand, an expansion of the headquarter facilities in Helsingborg known as "The Fortress" began during the quarter. The property will grow by 6,000 square meters in an investment that includes office, production, warehouse and showroom spaces. The new combined floorspace exceeds 10,000 square meters and is expected to be ready no later than in autumn 2027.
Summary of significant events after the end of the period
- MilDef won a hardware contract with a European NATO member country, worth approximately 553 MSEK. The contract involves the digitization of the country's army and is the single largest hardware order MilDef has ever received. Deliveries are expected to take place in 2027.
Statement by Daniel Ljunggren, President and CEO MilDef Group
Accelerated delivery pace
The second quarter of the year developed well and was in line with our expectations. The Group reported both solid organic growth and a strengthened operating margin, which is proof that the Company's investments in increased delivery capacity have borne fruit. Demand for advanced military IT solutions are rising and we have an offering that more than meets our customers' requirements. The slightly lower order intake in the second quarter compared with the same quarter in 2025 should be seen as volatility between individual quarters.
Net sales increased organically by 64% compared with the same period the previous year. The gross margin strengthened to reach 51.9% (46.0) and reflects the progress we have made with our sales mix in recent years. Excluding non-recurring items, EBITA increased by SEK 75 million compared with the corresponding period in 2025, which in turn was equivalent to a margin of 15.8% (6.5). The free cash flow during the first six months of the year improved by SEK 208 million in absolute numbers and earnings per share increased from SEK 0.19 to SEK 2.75 compared with the same period the previous year. It is worth repeating that MilDef operates in an industry where order intake and sales are typically volatile over individual quarters. For this reason, when assessing the Company's financial development it is important to do so from a long-term perspective.
During the second quarter, operations were characterized by a high level of activity and a strong focus on expanding capacity to meet long-term demand. The Company's rate of investment in increased delivery capacity remains at a high level. The expansion mainly consists of increasing the head count and creating more production space. A process of extensive reinforcement within the organization continues and is expected to have a positive impact on multiple levels over time. The previously communicated expansion of the Company's current headquarter facilities in Helsingborg is progressing well. This is an investment that will enable continuing increases in production capacity and sustained growth, and will equip us to meet rising demand among our customers. The expansion is expected to be ready no later than autumn 2027 and, once complete, will double MilDef's production capacity in Helsingborg.
An important milestone in the second quarter was that we signed a new strategic framework agreement with the Swedish Defence Materiel Administration. The agreement will accelerate the installation of MilDef's software for the Swedish Armed Forces - a solution that is already in use in some other Nordic countries. The installation software known as OneCIS enables efficient and secure communication and ensures interoperability in tactical cooperation between units in NATO. The framework agreement covers the entire lifecycle - from concept and development to production, operation and end-of-life. Under the agreement, MilDef can supply hardware, software, system solutions, integration, maintenance, sustainment and training, as well as technical and logistical preparedness support. The agreement is worth up to SEK 1.5 billion and the first order was placed in connection with its signing. This contract is evidence of MilDef's capacity to deliver in-demand military IT solutions and strengthens the Company's position as an important supplier in this area. We are seeing a clear trend where our customers are increasingly demanding proven system solutions, rather than individual products. This works in our favor because we are one of the few actors able to offer complete and comprehensive solutions, the effectiveness of which is field-proven.
There are continued challenges in the supply chains for electronic components - in terms of both lead times and price levels - but we continue to be proactive to ensure access to critical components. This involves a variety of actions, such as selective inventory build-up, working closely with suppliers to ensure deliveries, and frequent dialogue with customers regarding degrees of price absorption.
In conclusion, it is fair to say that in light of the uncertain geopolitical situation, security and defense issues remain a high priority - both nationally and internationally, for both the short and the long term. A well-filled order backlog combined with an active market is creating the right conditions for a strong second half of the year. The investments made in recent years, a broader product portfolio and strengthened delivery capacity have together equipped us to take advantage of growing demand and to win new business opportunities. All in all this makes us optimistic about the second half of 2026.
Daniel Ljunggren,
President & CEO
MILDEF GROUP'S INTERIM REPORT JANUARY-JUNE 2026 PRESENTATION
MilDef Group's President and CEO Daniel Ljunggren and CFO Viveca Johnsson will present the Interim Report for the second quarter 2026.
Date: Thursday July 16 at 10:00 a.m. (CEST). The report is published at 08:00 a.m. (CEST) the same day at www.mildef.com and the news platform MFN. You are welcome to watch the live webcast via Teams or dial in to the conference call. It is possible to state questions over the conference call and the web.
Connecting to the meeting
To connect to the meeting, click this Teams link or phone in on one of the phone numbers below (audio only). Notification is not required for participation in the conference call but please connect/call in five minutes prior to the specified time to ensure a punctual start of the meeting.
Phone numbers:
+46 8 502 413 79 (Sweden)
+47 23 52 52 25 (Norway)
+45 32 73 03 21 (Denmark)
+358 9 23106849 (Finland)
+44 20 3855 6017 (UK)
+1 323-486-4735 (US)
Use conference-ID: 482 113 306#
The interim report, the presentation material and the webcast will be available on www.mildef.com.
For more information, please contact:
Daniel Ljunggren, CEO and President
Phone: +46 70 668 00 15
Email: daniel.ljunggren@mildef.com
Olof Engvall, Head of IR & Communications
Phone: +46 735 41 45 73
Email: olof.engvall@mildef.com
MilDef - WE ARMOR IT.
MilDef provides rugged IT solutions, systems integration and services for the defense industry. Our systems are proven in real conditions and built to stand firm in every detail. We safeguard more than equipment, we safeguard the mission itself. MilDef was founded in 1997 and is listed on Nasdaq Stockholm since 2021.
This information is information that MilDef Group 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 agency of the contact persons set out above, at 2026-07-16 08:00 CEST.
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HQ Fortress In Helsingborg
