Strong order intake, high delivery pace and good profitability
Financial development third quarter 2026
- The order intake amounted to SEK 2,091 million (907), equivalent to an increase of 130%. The increase is entirely organic. The order backlog grew by 34% in the third quarter.
- Net sales increased by 54% to SEK 829 million (540). Growth in the quarter was exclusively organic and was driven mainly by the Swedish and German markets.
- The gross margin amounted to 45.4% (45.0). The margin was positively impacted by higher growth for system and integration solutions, but was lowered slightly by the percentage of sales of mobile products.
- Adjusted EBITA amounted to SEK 180.5 million (84.6), equivalent to an adjusted operating margin of 21.8% (15.7). Good profitability development is being driven by strong net sales.
- Adjusted operating profit (EBIT) amounted to SEK 161.1 million (64.7), corresponding to an operating margin of 19.4% (12.0).
- Free cash flow amounted to SEK -112 million (-53). The cash flow impact from good profitability was offset by increased capital tied up to secure deliveries in the upcoming quarters and by increased accounts receivable resulting from the high sales volumes.
Financial development January-September 2026
- The order intake amounted to SEK 3,907 million (2,189), equivalent to an increase of 78%.
- Order backlog as of September 30, 2026 increased by 61% to SEK 5,654 million compared with the same date in 2025 (3,507).
- Net sales increased by 72% to SEK 2,167 million (1,263). All geographic markets developed well during the first nine months of the year.
- The gross margin amounted to 46.9% (46.2). The margin was positively impacted by higher growth for system and integration solutions, but was lowered slightly by the percentage of sales of mobile products.
- Adjusted EBITA amounted to SEK 401.7 million (125.5), equivalent to an adjusted operating margin of 18.5% (9.9).
- The adjusted operating profit (EBIT) amounted to SEK 344.5 million (77.4), equivalent to an adjusted operating margin of 15.9% (6.1).
- Free cash flow amounted to SEK 55 million (-93). The change was attributable to good profitability development as well as the strong growth that took place without the addition of working capital to the same extent.
- Earnings per share after dilution over the last 12-month period amounted to SEK 7.03 (full year 2025: 3.16).
Summary of significant events in the third quarter, July-September 2026
- MilDef secured a hardware order worth around SEK 553 million from a European NATO country. The order involves digitalization of the country's armed forces. Deliveries are expected to take place in 2027.
- MilDef signed a seven-year extension of a framework agreement for deliveries to the German armed forces (Bundeswehr), potentially worth around EUR 527 million, and received a call-off order worth around EUR 95.4 million. Deliveries within the framework of the order are expected to begin in the latter part of 2026 and continue in 2027.
- MilDef decided to continue the expansion of its production and office facility in Rosersberg. The facility of around 6,500 sq m, which was opened in 2025, will be expanded by an additional 7,600 sq m with opening planned for the first quarter of 2028. The investment was made to address the growing demand in the defense industry.
- As part of MilDef's ongoing integration of roda computer GmbH and Westek Technology Ltd., both companies have formally assumed the name MilDef and are now called MilDef GmbH and MilDef UK Ltd. The name change consolidates MilDef's position as a leading European supplier of tactical IT.
Summary of significant events after the end of the period
- There have been no significant events after the closing day with an impact on financial reporting.
Statement by Daniel Ljunggren, President and CEO MilDef Group
Strong growth, record margins and sustained high demand
MilDef saw strong development in the third quarter of the year. Net sales, operating profit and margins reached the highest levels to date for an individual quarter. This development shows that our investments in increased capacity are yielding clear results and it also confirms the operational leverage contained in our business model.
Net sales increased organically by 54% compared with the previous year. Adjusted operating profit (EBITA) increased by 113% and the adjusted EBITA margin improved to 21.8% (15.7). Earnings per share increased from SEK 0.96 to SEK 2.34 which is equivalent to an increase of 143%.
The most important improvement during the quarter was the strong order intake of SEK 2.1 billion (0.9), equivalent to a book-to-bill ratio of 2.5x. This development reflects continued high investment activity among our customers and a growing need for robust digital infrastructure, for both the short and the long term. Thanks to our steadily strengthening delivery capacity, we are well positioned to meet the demand. The quarter's results are further proof of our ability to turn a strong order backlog into profitable growth and long-term shareholder value. Meanwhile it is important to remember that the defense market typically has natural quarter-on-quarter variations in order intake and deliveries. For this reason, the development should be assessed based on a longer time perspective than an individual quarter.
Throughout the year our operations have been characterized by a high level of activity and a focus on expanding capacity to deliver on our strong order intake. The third quarter was no exception. The ongoing expansion in Rosersberg will double the production space and strengthen our ability to handle increasing volumes, especially under the recently signed framework agreement with the Swedish Defence Materiel Administration. In parallel with this we are continuing to reinforce our organization to support our future development.
Thanks to our long-term investment in high quality, delivery precision and close cooperation with customers, we have been able to sign a seven-year extension of our existing framework agreement with the German armed forces (Bundeswehr). The extension of this framework agreement is proof of the trust one of Europe's most important defense customers has placed in MilDef - trust that we have built up from many years of successful deliveries. The framework agreement covers deliveries of computers, displays and network infrastructure. The agreement has a potential value of up to EUR 527 million, and an initial suborder worth EUR 95.4 million was received immediately following the signing of the framework agreement. The previous framework agreement had a potential value of EUR 80 million. There are no guarantees associated with this clear increase in the potential value of the agreement, but it is an obvious sign of the direction and pace of procurement.
The integration of roda continues to progress well. During the quarter there was a name change from roda computer GmbH to MilDef GmbH, which strengthens our joint market position and creates a uniform commercial platform for customers and partners.
Similar to previous quarters, there continue to be challenges in the supply chains for electronic components - in terms of both lead times and price levels. We are continuing to take proactive measures to secure our delivery capacity. 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 levels of price absorption.
In conclusion, it is fair to say that the quarter confirms that MilDef is a stronger company today than ever before. We have combined a record order backlog with high delivery capacity, improved profitability and an organization that continues to develop in line with the needs in the market. The geopolitical forces behind defense expenditure are long-term, and demand for robust digital infrastructure continues to increase. The investments we have made, the position we have established among strategically important customers and the market development we see ahead of us, put us in a good position to continue our journey with sustained growth and solid profitability. We therefore enter the final quarter of the year with a fundamentally positive view of our ability to create long-term value for both customers and shareholders for many years to come.
Daniel Ljunggren,
President & CEO
MILDEF GROUP'S INTERIM REPORT JANUARY-SEPTEMBER 2026 PRESENTATION
MilDef Group's President and CEO Daniel Ljunggren and CFO Viveca Johnsson will present the Interim Report for the third quarter 2026.
Date: Thursday October 22 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: 506 080 982#
The interim report, the presentation material and the webcast will be available on www.mildef.com.
For more information, please contact:
Daniel Ljunggren, CEO & 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. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-10-22 08:00 CEST.
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