HMS Networks (HMS) Q4 2025 earnings summary

Executive summary

• Organic net sales grew 23% in Q4 2025, with full-year organic order growth of 10% and sales growth of 3%.

• Record Q4 net sales and profitability were driven by strong North American performance and successful integration of Red Lion and PEAK acquisitions.

• Implemented new divisional structure in 2025 to enhance accountability and customer focus.

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

• Acquisition of Molex Industrial Communication closed in January 2026, expanding R&D and product offerings.

Financial highlights

• Q4 net sales: SEK 951 million, organic growth +23%; full-year net sales SEK 3,577 million (+17%).

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

• Adjusted EPS: SEK 4.17 in Q4; full-year adjusted EPS SEK 13.73 (+42% YoY).

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

• Proposed dividend: SEK 4.80 per share, highest to date.

Outlook and guidance

• Expectation of market pickup in 2026, especially in North America, with gradual improvement in Europe and Japan.

• Gradual increase in OpEx anticipated through 2026 to support growth initiatives.

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

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

• Cautiously optimistic short- to medium-term outlook, with macroeconomic and trade policy uncertainties.