Financial performance in October-December
• Sales amounted to SEK 1,001 (1,025) million. Organic growth was -1%, currency adjusted.
• Operating profit was SEK 113 (98) million. Adjusted operating profit was SEK 114 (108) million, adjusted for revaluations of operating assets and liabilities in foreign currencies and acquisition costs.
• The operating margin amounted to 11.3% (9.5%). The adjusted operating margin was 11.4% (10.5%).
• Profit after financial items was SEK 109 (91) million.
• Profit after tax amounted to SEK 86 (73) million, corresponding to SEK 3.04 (2.55) per share.
• Adjusted for items affecting comparability, such as acquisition-related payments made and investments in the property in Torsby, Sweden, operating cash flow amounted to SEK 58 (140) million. Total cash flow after investments amounted to SEK -285 (124) million, or SEK -9.98 (4.35) per share.

Financial performance in January-December
• Sales amounted to SEK 3,814 (3,901) million. Organic growth was +0%, currency adjusted.
• Operating profit was SEK 381 (352) million. Adjusted operating profit was SEK 385 (364) million, adjusted for revaluations of operating assets and liabilities in foreign currencies, for a SEK 18 million provision for restructuring of the UK operation in the first quarter and for acquisition costs.
• The operating margin amounted to 10.0% (9.0%). The adjusted operating margin was 10.1% (9.3%).
• Profit after financial items was SEK 352 (310) million.
• Profit after tax amounted to SEK 281 (248) million, corresponding to SEK 9.89 (8.61) per share.
• Adjusted for items affecting comparability, such as acquisition-related payments made and investments in the property in Torsby, Sweden, operating cash flow amounted to SEK 437 (539) million. Total cash flow after investments amounted to SEK 32 (465) million, or SEK 1.12 (16.33) per share.

Dividend
• To maximise its financial freedom to act in the sector’s ongoing structural transformation, the Board of Directors is proposing that no dividend is paid for 2025.

CEO’s comment - We delivered as promised with sales of over 1 billion Swedish kronor. We’re also proud to deliver our highest profitability to date with an operating margin of over 11% for the quarter.

” We delivered as promised in Q4, when our sales passed one billion Swedish kronor. Being at the lower end of our guidance is due to defence-related products. The defence industry continues to face significant challenges in keeping up with the rapid ramp‑up the sector is undergoing, which in turn leads to delays also for us as an EMS partner. Our sector is in an exciting phase, with trends like regionalisation, electrification and security & defence being strong drivers going forward. With our close customer relationships and an organisation with proven capability to deliver in every situation, we’re ready to take a leading position. This is why we’re investing, expanding and developing our business even when the business environment is uncertain.

We made our single biggest investment in NOTE when we got approval to complete our acquisition of UK EMS provider Kasdon in early-Q4. Kasdon’s sales are around GBP 12 million, and has a strong positioning in the defence sector. We’re really happy with how this company has performed in its first months as part of NOTE.

We achieved another major milestone in December when the expansion of our largest Swedish plant was completed. Doubling production space means our Torsby plant now has the potential for rapid growth, and with its customer base and future plans, we’re convinced that expanding this plant was important.

We’re delivering very high profitability. For the quarter, we achieved underlying operating margin as high as 11.4%, which is our highest margin to date, and the corresponding full-year figure is 10.1%. The fact that we’re achieving record profitability growth when sales are below what we’d hoped, demonstrates what a fantastic organisation we have.

Sustained high profitability, combined with efficient progress in the utilisation of working capital, generated continued high cash flows. We reported operating cash flow of SEK 58 million for the quarter and SEK 437 million for the full year. With an equity to assets ratio of 48% plus sound finances, we have stability and room to manoeuvre, and are thus well positioned to exploit the opportunities on the market.
 
We expect the defence sector’s continued challenges to impact early-2026. We then anticipate a gradual improvement from customers, giving us a positive view of the full year 2026. This is reflected in our order backlog, which at year end 2025, was up 11% on the corresponding point of the previous year, in like-for-like terms.

Given the positive drivers for the sector, our strong positioning as an EMS partner and efficient organisation, we’re well positioned for coming growth.”, says Johannes Lind-Widestam, CEO & President.

NOTE’s Year-end Report for 2025 is now available in PDF format on the corporate web site, www.note-ems.com, and attached to this message. Today at 10.00 CET, NOTE organises a presentation for analysts, media and investors, where CEO and President Johannes Lind-Widestam presents the report. The Interim Report for January–March will be published on 23 April.