Slides
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Hardware Meets Software HMS Networks Q4 2025 presentation Staffan Dahlström, CEO, Joakim Nideborn, CFO January 27, 2026
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Agenda 2 Financial summary Q4 2025 3 Q&A Business update from Q4 20251
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Financial summary of Q4 2025 and full year Q4 summary 2025 • Net sales 951 MSEK (807), +18%, organic +23% • Order intake 854 MSEK (893), -4%, organic +3% • Adjusted EBIT 268 MSEK (163) • Adjusted EBIT margin 28.2% (20.2) • Cash flow from ops. of 231 MSEK (177) • Adjusted EPS 4.17 (2.60) • Net sales 3,577 MSEK (3,059), +17%, organic +3% • Order intake 3,456 MSEK (2,812), +23%, organic +10% • Adjusted EBIT 911 MSEK (665) • Adjusted EBIT margin 25.5% (21.8) • Cash flow from ops. of 877 MSEK (592) • Adjusted EPS 13.73 SEK (9.65)
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Business update – fourth quarter 2025 • Improvement in Europe and Japan but temporarily weaker order intake in North America • Record Net Sales – driven by IDS performance in North America • Received official validation of climate targets from the Science Based Targets initiative (SBTi) — a significant milestone in the company’s journey toward a sustainable future • Signed agreement to acquire parts related to the industrial communication business from Molex’s Industrial Solutions division • The acquisition will be an integrated part of division Industrial Network Technology (INT)
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• Family owned, 50.000+ Employees, presence in 38+ countries • Main business focus; passive connectivity components (cables, connectors, etc.) • Seeking to divest Industrial Communication solutions due to: • Inability to revitalize current declining business (Hardware) • Inability to capitalize on current portfolio due to lack of sales capacity HMS acquires Molex Industrial Communications Molex LLC Asset deal closing 2nd of January 2026 • Add revenue of more than 10 MUSD annually • Two R&D teams in Canada and France (31 FTE) • Add relevant hardware and software products + IPs to HMS • Customer base in the USA and Japan • HMS pays 7 MUSD in cash Industrial Hardware Protocol stacks & IP
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Molex Industrial Communications High level Industrial Communication overview factory Rationale for HMS division INT • >90% of all devices within factory automation are related to device/adapter nodes • HMS has +2 000 customers buying standard device/adapter network interface cards to enable communication MOLEX MOLEX HMS HMS HMS MOLEX MOLEX • <10% of all devices within factory automation are Controller/Scanner and more sophisticated applications • MOLEX provide Network interface cards, SDK’s and product configuration tools enabling primarily controller/scanner functionality safe and non-safe Safety network
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Agenda 2 Financial summary Q4 2025 3 Q&A Business update from Q4 20251
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Order intake of 854 MSEK in Q4 2025, -4% Order intake, MSEK Analysis and conclusions 682 703 492 426 473 516 433 503 512 744 780 823 253 244 390 418 72 75 0 1 000 2 000 3 000 4 000 5 000 6 000 0 200 400 600 800 1 000 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 32 Q425 769 677 893 930 816 855 854 -4% Order intake LTM (incl. Proforma) Acquisitions LTM HMS excl acquisitions • Q4 2025: 854 MSEK (893), -4% (organic +3%) • Year: 3,456 MSEK (2,812), +23% (organic +10%) • European market outlook continues to improve • Weaker order intake in North America • Asia in general shows stable development and positive signs of recovery in Japan Bridge Q424-Q425, MSEK Bridge year, MSEK 23 32 Q4 2024 Organic -93 FX* Acquisitions Q4 2025 893 854 292 598 2024 Organic -245 FX* Acquisitions 2025 2 812 3 4563% -10% 4% 10% -9% 21% *Including FX revaluation of orderbook
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Net sales 951 MSEK in Q4 2025, +18% Net sales, MSEK Bridge Q424-Q425, MSEK 773 703 789 760 616 562 548 503 526 767 815 920 283 244 304 364 76 79 0 1 000 2 000 3 000 4 000 5 000 6 000 0 200 400 600 800 1 000 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 30 Q425 845 792 807 890 843 894 951 +18% Net Sales LTM (Incl. Proforma) Acquisitions LTM HMS excl acquisitions 185 30 Q4 2024 Organic -71 FX Acquisitions Q4 2025 807 951 104 550 2024 Organic -136 FX Acquisitions 2025 3 059 3 577 • Q4 2025: 951 MSEK (807), +18% (organic +23%) • Year: 3,577 MSEK (3,059), +17% (organic +3%) • Strong organic growth supported by the increased capacity in our North American manufacturing facility • Continued recovery in Europe – modest pace • The organic Net Sales for the year turned to growth (+3%) 23% -9% 4% 3% -4% 18% Analysis and conclusions Bridge year, MSEK
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412 391 386 492 459 382 410 374 0 100 200 300 400 500 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 -24% IDS order intake & net sales (incl proforma in Q124), MSEK Analysis and conclusions • Order intake 374 MSEK (492), -24%, organic -15% • Net sales 481 (395), +22%, organic +28% • Adjusted EBIT in Q4 2025 of 139 MSEK, margin of 28.9% • Solid deliveries and increased capacity in North Americas manufacturing facility, reducing orderbook from strong order intake in Q4 2024 and Q1 2025 • Increased profitability for IDS – major impact on Group overall earnings Q4 2025: Industrial Data Solutions 409 436 399 395 418 377 439 481 0 100 200 300 400 500 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 +22% Net Sales Order intake 52% 26% 67% 7% EMEA Americas APAC Part of HMS adj. EBIT
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203 239 190 234 250 250 241 273 0 100 200 300 400 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 +17% INT order intake & net sales, MSEK Analysis and conclusions • Order intake 273 MSEK (234) +17%, organic +27% • Net sales 263 MSEK (246), +7%, organic +13% • Adjusted EBIT in Q4 2025 of 82 MSEK, margin of 31.3% • Continued improvements in Europe • Japan customers placing larger orders • Signed agreement to acquire parts related to the industrial communication business from Molex’sIndustrial Solutions division Q4 2025: Industrial Network Technology 345 271 275 246 257 269 246 263 0 100 200 300 400 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 +7% Net Sales Order intake 31% 56% 23% 21% EMEA Americas APAC Part of HMS adj. EBIT
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210 208 174 190 221 184 204 207 0 100 200 300 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 +9% NI order intake & net sales (incl proforma), MSEK Analysis and conclusions • Order intake 207 MSEK (190), +9%, organic +18% • Net sales 207 (192), +8%, organic +12% • Adjusted EBIT in Q4 2025 of 47 MSEK, margin of 22.7% • Strong quarter for the Vehicle Communication business • Building Automation somewhat weaker after a strong third quarter Q4 2025: New Industries 213 206 190 192 215 197 209 207 0 100 200 300 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 +8% Net Sales Order intake 17% 65% 21% 14% EMEA Americas APAC Part of HMS adj. EBIT
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Q4 2025: Adjusted EBIT 268 MSEK (28.2%) Adjusted EBIT, MSEK Analysis and conclusions • Adjusted EBIT Q4: 268 MSEK (163) • Adjusted EBIT margin Q4: 28.2% (20.2) • Adjusted EBIT 2025: 911 MSEK (665) • Adjusted EBIT margin 2025: 25.5% (21.8) • Adjusted EBIT +37% 2025 • Q4 2025 gross margin of 63.0% (62.6) • Stabilized gross margin after a year of tariff effects and following price adjustments • OPEX Q4: 368 MSEK (402), (organic +3%) • EBIT impact from FX -15 MSEK in Q4 Adj.EBIT, % 211 150 223 169 130 104 163 106 175 138 213 23627 27 30 31 29 29 28 23 42 26 13 14 0 100 200 300 400 500 600 700 800 900 1 000 0 50 100 150 200 250 300 4 Q323 4 Q423 34 Q124 Q224 4 Q324 Q424 Q125 Q225 2 Q325 4 Q425Q123 4 Q223 216 154 226 196 137 172 194 163 218 181 244 268 5 +65% Adj. EBIT LTM Items affecting comparability Amort. of excess values EBIT 25%28% 22% 29% 26% 22% 20% 20% 25% 27%21% 28%
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Q4 2025: Adjusted EPS 4.17 SEK Adjusted EPS, SEK Analysis and conclusions 0 5 10 15 20 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 0.00 4.50 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 3.79 2.56 3.77 2.94 2.43 2.12 2.51 2.60 3.17 2.52 3.88 4.17 Q425Q325 +60% Adjusted EPS LTM Adjusted EPS Q4: • Adjusted EPS of 4.17 SEK (2.60) • Net financials of -29 MSEK (-36) mainly related to interest cost • A non-recurring tax effect of 104 MSEK, related to the Red Lion acquisition, has been recognized in the tax expense for the quarter and also adjusted for in adjusted EPS • Reported EPS 1.44 SEK (1.49) 2025: • Adjusted EPS of 13.73 SEK (9.65), +42% • Reported 8.66 SEK (6.35), +36% • The Board proposes a dividend of 4.80 SEK (0), i.e. 35% of adjusted EPS
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Q4 2025: Cash flow from ops. of 231 MSEK Q4: • Cash flow from ops. of 231 MSEK (177) • One-time tax effect related to Red Lion acquisition of 104 MSEK impacts the cash flow negative • Changes in NWC, +27 MSEK (49) 2025: • Cash flow from ops. of 877 MSEK (592) • Changes in NWC, +169 MSEK (64) with the majority related to inventory reductions • Cash conversion 82% 155 78 167 58 177 187 258 231 0% 25% 50% 75% 100% 125% 0 50 100 150 200 250 300 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 119 152 205 201 +31% Cash conversion (cash flow ops./adj.EBITDA) Cash flow Cash flow, MSEK Analysis and conclusions
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Q4 2025: Net debt of 2,354 MSEK Net debt and leverage, MSEK Analysis and conclusions 127 113 128 127 274 132 284 261 275 137 197 185 194 192 188 295 -22 -99 248 276 266 259 245 245 0 2 000 3 000 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 -500 3 500 2 500 500 Q123 Q223 Q323 Q423 132 Q124 255 2 372390 2 354 2 556 540 3 275 309383 Q425 2 760 1 921 2 950 289 Q325 2 823 2 574 2 137 -19 Q225 133 2 370 Q125 2 499 Q424 2 802 Q324 2 171 Q224 -98 Net debt/Adj.EBITDA IFRS16 Non interest bearing debt All other net debt • Net debt / Adj. EBITDA: 2.21 (3.41) • Net debt pre IFRS 16 / Adj. EBITDA: 2.13 (3.36) • Continued reduction of leverage in Q4, closing the year in line with long term targets • New long-term financing agreement signed in December 2025 with two Swedish banks
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Key takeaways from 2025 Record profitability and cash flow Successful implementation of divisions Organic growth in a challenging market • Organic growth in both order intake and net sales in a challenging market with uncertain macro economic environment • Strong performance from 2024 acquisitions • Good performance in North America, Europe improving throughout the year, but in a slower pace than expected • Good cost control and clear responsibilities in the new division structure • Adjusted EBIT +37% for the year. Margin of 25.5% • Cash flow from operations in line with adjusted EBIT • Full accountability of strategies, resources and financial performance • Increased customer focus from Sales to R&D • 2030-strategy launched in September
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Questions?