Mildef Group (MILDEF) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong demand and order intake, up 88% year-over-year, with significant organic and M&A contributions.

• Acquisition of roda computer GmbH completed and integrated, expanding European presence and adding SEK 693 million to backlog.

• Handheld business wind-down proceeding as planned, with focus shifting to defense and security.

• Order backlog more than doubled to SEK 2,766 million, reflecting robust demand and M&A impact.

• Major contracts signed post-period, including SEK 126 million with FMV and SEK 45 million with a global defense group.

Financial highlights

• Net sales rose 46% year-over-year to SEK 340 million, with 18% organic and 28% M&A growth.

• Adjusted EBITDA/EBITA reached SEK 15.7 million, margin at 4.6%, a clear improvement year-over-year.

• Gross margin for legacy business was 50.5% in Q1; total gross margin was 48%, slightly diluted by roda.

• Free cash flow was negative SEK 75.2 million, mainly due to late-quarter deliveries and payment timing.

• Order backlog increased 111% year-over-year, with 59% organic growth; book-to-bill ratio at 1.5.

Outlook and guidance

• Strong order backlog and book-to-bill ratio support continued growth in 2025.

• Defense budgets in Europe and the Nordics are rising, with new targets expected at the NATO summit.

• Management expects double-digit growth for roda in 2025, supported by increased German defense spending.

• Market expected to remain strong for at least 10 years, with digitalization and data-driven defense as key trends.

• MilDef and roda positioned as a leading European player in military IT equipment.