Third quarter
- Order intake increased by 29% to SEK 1,104 m (855). Organically, order intake increased by 22%
- Net sales increased by 15% to SEK 1,024 m (894). Organically, net sales increased by 6%
- EBITA reached SEK 280 m (242), equal to a 27.4% (27.1) margin
- EBIT reached SEK 253 m (213), equal to a 24.7% (23.9) operating margin
- Profit after tax totaled SEK 164 m (164) and basic earnings per share were SEK 3.27 (3.26)
- Profit after tax adjusted for amortization of excess values from acquisitions (adjusted profit after tax) totaled SEK 192 m (192) and adjusted basic earnings per share were SEK 3.82 (3.83)
- Cash flow from operating activities amounted to SEK 333 m (258)
- Public tender offer for ROBOT S.A.
First nine months
- Order intake increased by 23% to SEK 3,191 m (2,601). Organically, order intake increased by 15%
- Net sales increased by 14% to SEK 2,987 m (2,627). Organically, net sales increased by 11%
- EBITA reached SEK 810 m (615), equal to a 27.1% (23.4) margin
- EBIT reached SEK 728 m (526), equal to a 24.4% (20.0) operating margin
- Profit after tax totaled SEK 482 m (363) and basic earnings per share were SEK 9.60 (7.23)
- Profit after tax adjusted for amortization of excess values from acquisitions and non-recurring items (adjusted profit after tax), totaled SEK 546 m (451) and adjusted basic earnings per share were SEK 11.24 (8.98)
- Cash flow from operating activities amounted to SEK 916 m (646)
- Acquisition of Molex’s industrial communications business
- Minority investment in AI company Ekkono
CEO comments
A QUARTER WITH REVENUE EXCEEDING SEK 1 BILLION
The market continued to develop favorably during the quarter, and for the first time HMS surpassed the milestone of SEK 1 billion in quarterly revenue.
Order intake amounted to SEK 1,104 million (855), corresponding to organic growth of 22%. In addition to the general improvement in the industrial economy, where the global purchasing managers’ index reaching its highest level since 2022 during the quarter, investments in data centers and the semiconductor industry continued to support our growth. We also see that the increased cost pressure in the component market is broadening and now extends beyond memory components to include printed circuit boards and other components. Concerns over longer lead times and upcoming price increases led some customers to place order in advance. We estimate that the combined positive effect of these orders amounted to approximately SEK 70 million during the quarter, primarily within the Industrial Network Technology (INT) division.
Revenue reached SEK 1,024 million (894), representing growth of 15%, of which 6% was organic. INT and New Industries (NI) are the primary drivers of this growth. The gross margin amounted to 62.7% (64.1). Higher component prices and tariffs, which now affect a broader share of our product portfolio, had a negative impact on the gross margin. At the same time, higher volumes and favorable currency effects contributed positively.
We continue to invest in our organization, with a focus on strengthening development capabilities and building competence within AI. Operating expenses totaled SEK 391 million (362), corresponding to an organic increase of 6%. The strong revenue performance laid the foundation for a new record EBITA of SEK 280 million (242), corresponding to an EBITA margin of 27.4% (27.1).
Cash flow also remained strong, amounting to SEK 333 million (258), partly driven by temporary improvements in working capital. This contributed to reducing net debt in relation to EBITDA excluding IFRS 16 to 1.52x (2.77x), further strengthening our position for continued growth.
CONTINUED POSITIVE DEVELOPMENT IN ASIA AND RECOVERY IN EUROPE
Asia continued to perform positively, with organic order intake growth exceeding 40% during the quarter. Both China and Japan delivered solid growth. In Japan, several customers resumed ordering after several quarters of restrained purchasing activity.
In Europe, the broad-based recovery continued following weaker comparison years in 2024 and 2025, resulting in organic order growth of approximately 20%. The strategically important DACH region developed in line with this trend. The order intake also grew in North America by just under 10% during the quarter, despite strong comparables from the previous year.
HIGHER COMPONENT COSTS AND BROADER TARIFFS PUT PRESSURE ON THE GROSS MARGIN
We have previously reported rising component prices. Initially, these increases were primarily related to memory components, where prices have risen several hundred percent due to strong demand from, among other things, data centers. We now see cost increases spreading to areas such as printed circuit boards and passive components.
In addition, tariff regulations governing trade between Europe and the United States, and not least between Canada and the United States, changed during the summer. Several product categories that were previously exempt are now subject to tariffs, negatively affecting HMS.
To offset these cost increases, HMS informed customers during the quarter of price increases that will take effect on January 1, 2027. As a result, the gross margin is expected to remain under pressure during the fourth quarter and potentially into 2027 until the new pricing has had full effect.
PUBLIC TENDER OFFER WITHIN NEW INDUSTRIES
During the quarter, HMS announced a public tender offer for the Spanish company Robot S.A. Robot is a well-established provider of sensors, room controllers, and building automation systems, with a particular focus on the hospitality sector. The company’s offering of improved indoor climate and reduced energy consumption aligns well with HMS’s building automation business.
At the time of the announcement, shareholders representing more than 77% of the shares had already committed to accepting the offer. HMS expects to complete the transaction before the end of 2026. Robot is a good fit with the building automation business within the New Industries division, where the company will be integrated following the completion of the transaction.
CONTINUED PROGRESS IN INFORMATION SECURITY
During the quarter, HMS achieved global ISO/IEC 27001 certification, an important recognition of our long-term commitment to information security. The certification strengthens customer confidence in our solutions and confirms that we operate in accordance with internationally recognized cybersecurity standards. As regulatory requirements increase and customer expectations continue to rise, we view this as an important competitive advantage and a natural part of our offering.
OUTLOOK
Demand has remained solid and broad-based across our major markets so far this year. At the same time, rising component prices, new trade tensions, and geopolitical uncertainty in the Middle East contribute to a degree of uncertainty regarding future market developments. Despite these factors, many of our industrial customers continue to execute their investment plans and business activities, and we remain positive about the medium-term growth potential.
In the longer term, we believe that the trend towards a more regionalized industrial production landscape in North America, Europe, China, and Southeast Asia will drive increased demand for automation, digitalization, and industrial communication, a development that benefits HMS. Through continued investments in product development, innovation, and sales, we see good opportunities to win new customers and grow with existing ones. Creating profitable growth, both organically and through acquisitions, remains our priority.
Halmstad October 21, 2026
Staffan Dahlström
Chief Executive Officer
For more information, please contact:
Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01
Joakim Nideborn, CFO HMS, +46 (0)35 710 6983
This information is such that HMS Networks AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CEST on October 21, 2026.
HMS Networks AB (publ) is a market-leading provider of solutions in Industrial Information and Communication Technology (Industrial ICT) and employs over 1,100 people. Local sales and support are handled through over 20 sales offices all over the world, as well as through a wide network of distributors and partners. HMS reported sales of SEK 3,577 million in 2025 and is listed on the NASDAQ OMX in Stockholm in the Large Cap segment and Telecommunications sector.
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