Mildef Group (MILDEF) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 10.3% year-over-year to SEK 250 million, with gross margin steady at 50.0%.

• Order intake surged 134% to SEK 415 million, driving a record order backlog of SEK 1,627 million as of September 30, 2024.

• Free cash flow improved for the fourth consecutive quarter, reaching SEK 42.6 million in Q3.

• Signed a significant premises contract in Stockholm to quadruple integration service capacity, with move-in planned for autumn 2025.

• Appointed Magnus Hagman as new VP Nordics and held the first Capital Markets Day.

Financial highlights

• Net sales reached SEK 250 million in Q3 2024, up 10.3% year-over-year.

• Order intake surged 134% year-over-year to SEK 415 million, with major contracts including SEK 135 million for rugged displays and SEK 72 million for military vehicle computers.

• Adjusted EBITA rose to SEK 31.1 million (12.5% margin), up from 8.4% in Q3 2023.

• Gross margin stable at 50% in Q3 and 49.9% on a rolling twelve-month basis.

• Net debt to EBITDA ratio improved to 1.4x, below the long-term target of 2.5x.

Outlook and guidance

• Management expects continued strong demand driven by increased defense spending, digitalization, and geopolitical tensions.

• Upgraded long-term profitability target to EBITA margin of at least 15% over time.

• Strategic M&A agenda and value creation through acquisitions remain a priority.

• No seasonality effect in order intake; recent strength attributed to increased defense spending.

• Product portfolio and market position seen as strong, supporting optimism for future order wins.