Mildef Group (MILDEF) Q3 2025 earnings summary

Executive summary

• Order intake reached SEK 907 million in Q3 2025, up 119% year-over-year, driven by organic growth and the Roda acquisition, with a record order backlog for 2026.

• Net sales doubled to SEK 540 million, increasing 116% year-over-year, with organic growth at 36% and acquisition contributing 80%.

• Strategic contracts secured with FMV (Sweden), Secunet (Germany), NATO NSPA, and Bundeswehr, reinforcing market position.

• Significant capacity ramp-up underway, including a new production facility in Stockholm/Rosersberg, quadrupling previous capacity.

• Roda delivered strong order intake and secured its largest-ever contract with Bundeswehr, strengthening its position in Germany.

Financial highlights

• Adjusted EBITA for Q3 was SEK 84.6 million, up 172% year-over-year, with a margin of 15.7% (up from 12.5%).

• Gross margin (excluding M&A) reached 53.5%; group gross margin was 45% due to Roda's lower margin.

• Free cash flow was negative SEK 53.1 million, mainly due to inventory build-up for Q4 deliveries.

• Book-to-bill ratio at 1.8, reflecting strong demand and future revenue visibility.

• Net debt/EBITDA improved to 2.6x, with working capital as a percentage of net sales just below 40%.

Outlook and guidance

• Strong and intensive Q4 2025 expected, with high delivery volumes and improved free cash flow projected for Q1 2026.

• Continued focus on scaling capacity, process excellence, and maintaining high gross margins.

• Anticipated margin improvement for Roda and sustained high margins for the core business.

• Seasonality expected to persist, with Q4 remaining the largest delivery quarter.

• Defense tech supercycle and digitalization trends expected to drive long-term growth.