Mildef Group (MILDEF) Q4 2024 earnings summary

Executive summary

• Achieved strongest quarter in company history with record highs in order intake, net sales, and order backlog for Q4 2024, driven by a strategic focus on defense and the acquisition of roda computer GmbH, expanding presence in Central Europe.

• Order intake exceeded SEK 773 million in Q4, up 89% year-over-year, and order backlog rose 55% to SEK 2,055 million at year-end.

• Operational efficiency initiatives led to improved profitability and positive free cash flow for five consecutive quarters.

• Strategic realignment to focus solely on defense and security, including integration of Handheld’s defense products and discontinuation of other Handheld segments.

Financial highlights

• Q4 net sales reached SEK 418 million, up 18% year-over-year; full-year net sales at SEK 1,201 million, up 4%.

• Q4 order intake at SEK 773 million, up 89% year-over-year; full-year order intake at SEK 1,810 million, up 49%.

• Adjusted Q4 EBITA was SEK 71 million, margin 17.0%; full-year adjusted EBITA at SEK 149.7 million, margin 12.5%.

• Free cash flow for 2024 was SEK 127.7 million, up from SEK 8.7 million in 2023.

• Reported EBIT for 2024 was -209.0 MSEK, impacted by 321 MSEK in non-recurring restructuring and acquisition costs.

Outlook and guidance

• Strong order backlog above SEK 2 billion, up 55% year-over-year, supporting future sales and growth in 2025.

• SEK 1.1 billion in sales already secured for 2025, 37% higher than the same position last year.

• Management expects continued strong demand driven by European defense upgrades, modernization, and increased NATO interoperability.

• No major CapEx planned for 2025 beyond a new Stockholm facility; CapEx to sales ratio expected to decrease.

• Largest-ever order book and recent acquisitions provide a solid foundation for growth in 2025.