Financial Summary

April–June 2025

• Net sales amounted to SEK 111.1 million (97.3).
• EBIT amounted to SEK –8.0 million (–6.2).
• Net profit amounted to SEK –10.5 million (–4.7).
• Earnings per share amounted to SEK –0.66 (–0.31).
• Cash flow from operating activities amounted to SEK –18.5 million (–9.5).
• Order intake during the period amounted to SEK 358 million (115) with the order book amounting to SEK 597 million (221).

January–June 2025

• Net sales amounted to SEK 195.6 million (190.6).
• EBIT amounted to SEK –11.1 million (–7.7).
• Net profit amounted to SEK –14.8 million (–10.0).
• Earnings per share amounted to SEK –0.92 (–0.67).
• Cash flow from operating activities amounted to SEK –27.9 million (–30.9).
• Order intake during the period amounted to SEK 467 million (190) with the order book amounting to SEK 597 million (221).

Significant events during the second quarter

• Strategic agreement worth SEK 25 million for 2025–2026 with the Finnish Defence Forces for the delivery of a mobile live fire training system.
• SEK 20 million order from the Swedish Defence Materiel Administration (FMV) for a live fire training system, to be delivered in 2025.
• SEK 56 million export order to the United Kingdom for simulators, with deliveries in 2025–2028.
• SEK 48 million supplementary order from FMV for a live fire training system, to be delivered in 2025.
• SEK 57 million order from KNDS (Germany) for CV90 simulators for the Swedish Armed Forces, with deliveries in 2025–2028.

Significant events after the end of the period

• Directed share issue of SEK 103.9 million at a premium of SEK 1 per on the average closing price of the share during June.

Comments by President and CEO, Evelina Hedskog

Strong order intake provides favourable conditions

Long-term steady and growing market 
During the second quarter of the year, the unstable global situation continued to have a significant impact on the defence sector, albeit not with the same dramatic shifts as at the beginning of the year. Instead of political statements that had short-term effects, we have seen long-term initiatives that will be influential for the coming years. At the NATO summit in The Hague, a decision was made on a 5 % target for all member states, of which 3.5% is for pure defence spending - this while the EU set a clear goal that at least 50% of the defence equipment procured by member countries should be produced within the union.   

Furthermore, the Swedish government published its Defence Industry Strategy for a Stronger Sweden in early summer. This document establishes guidelines for how the interaction between politics, defence authorities, and the defence industry should function and focuses on the three areas of innovation, production, and cooperation. The strategy also emphasises the importance of small and medium-sized enterprises and their role in the defence industrial ecosystem. 

Together, NATO’s, the EU’s, and Sweden’s actions show the long-term investment now being made to strengthen western defence. As an established player in the Nordic defence market, it is now up to us at W5 to both contribute to increased defence capability and simultaneously deliver profitable growth. 

Strong order intake and export success
Our rapidly growing order book clearly reflects the continued favourable business situation this quarter as well. We are pleased to see the clear breakthrough in the simulator area, where business area Power has received extensive orders from customers in both the UK and Germany – this, while the Swedish Defence Materiel Administration has placed substantial orders with the Training business area for live fire training equipment, with delivery scheduled already within the current year.

In business area Integration, order intake has not been as extensive, but in return we deliver a stable profit margin. In terms of revenue and earnings, however, there is still room for improvement overall, and the focus for the second half of the year will now be to deliver on the orders we have received. Several of the contracts we have now won have been started before the agreements were signed, which is reflected in the cost base of business area Power. This has enabled us to proactively begin project management and development work, as well as place orders for components with long lead times. With increased turnover and a strong order book, we can now also fully utilise the organisational foundation we have established – with the right competence, efficient processes, and adequate premises at all operational sites, we have the right conditions for profitability.

The plan remains firm
Our financial goal for 2027 of SEK one billion in turnover and a profitability of 10% remains, where a combination of sustainable organic growth and acquisitions will take us towards the goal. During the spring, the structured work to find suitable acquisition targets has intensified, while our strong order intake means that a number of capital-intensive projects are now in the start-up phase. To create room for manouver, we therefore carried out a directed new share issue of a total of SEK 104 million shortly after the end of the period, which was done at a premium of 1 SEK on the average closing price for the share during June. In summary, W5 now faces an exciting autumn, where we have good opportunities to deliver strong results by year-end and take important steps towards achieving our long-term financial goal.

Webcast presentation of Q2 2025 results
W5 Solutions invites investors, analysts and media to a webcast presentation of the report.
President and CEO Evelina Hedskog and CFO Cecilia Driving will present the report. The presentation will be held in English and followed by a Q&A session moderated by, Hannah Falkenström, Director of Communication and IR.

• Date and time: 5 August 2025, 11:30 CEST

To attend the live webcast, please register via the following link: Register for the webcast.

The complete report, attached to this press release, is also available for download on the company’s website: w5solutions.com.