HMS Networks
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HMS Networks (HMS) investor relations material

HMS Networks Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary27 Jan, 2026

Executive summary

  • Q4 2025 delivered record net sales of SEK 951 million, with 23% organic growth and strong profitability, driven by North American performance and successful integration of Red Lion and PEAK acquisitions.

  • Full-year organic order growth was 10%, with net sales up 17% to SEK 3,577 million and adjusted EBIT up 37% to SEK 911 million (25.5% margin).

  • The board proposed a record dividend of SEK 4.80 per share for the April 2025 meeting.

  • New divisional structure implemented from January 2025, enhancing customer focus and accountability.

  • Launched 2030 strategy and received SBTI validation for climate targets.

Financial highlights

  • Q4 net sales reached SEK 951 million, up 23% organically year-over-year; full-year net sales were SEK 3,577 million, up 17%.

  • Adjusted EBIT for Q4 was SEK 268 million (28.2% margin); full-year adjusted EBIT was SEK 911 million (25.5% margin).

  • Adjusted EPS for Q4 was SEK 4.17; full-year adjusted EPS was SEK 13.73, up 42% year-over-year.

  • Cash flow from operations in Q4 was SEK 231 million; full-year cash flow was SEK 877 million, with an 82% cash conversion rate.

  • Net debt/adjusted EBITDA at year-end was 2.13x–2.21x, reduced from 3.41x last year.

Outlook and guidance

  • Management expects gradual OpEx increases in 2026 to support growth, with investments ramping up and a cautiously optimistic outlook amid macroeconomic uncertainties.

  • North American market softness in Q4 is viewed as temporary, with expectations for recovery as large project orders return.

  • Book-to-bill ratio expected to stabilize around 1x or higher in 2026 as backlog normalizes.

  • Long-term trends in automation and regionalized production expected to drive demand.

  • Profitable growth, both organically and via acquisitions, remains a strategic priority.

Molex acquisition: What is its margin profile?
Quantify future tax benefits from Red Lion election?
IDS: What drives large project order fluctuations?
What signals indicate market pickup in 2026?
Red Lion margin drivers: sustainable beyond Q4 peak?
How will new financing support 2030 strategy?
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Frequently asked questions

HMS Networks AB provides industrial communication and industrial Internet of Things solutions under the Anybus, Ewon, IXXAT, and Intesis brands worldwide. The company offers wired connectivity products, including I/O modules and gateways that connect automation systems, PLCs, and robots with other machine members; and industrial wireless solutions for various IIoT use cases. It also provides communication interface products that link industrial automation devices to machine networks and cloud services. In addition, the company offers support services to enable customers to connect their machines and control equipment on the network or in the cloud. HMS Networks AB was founded in 1988 and is headquartered in Halmstad, Sweden.

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