HMS Networks AB (publ) (STO: HMS) Q2 2025 Earnings | 07/11/2025

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HMS Networks AB (publ) (STO: HMS) reported its Q2 2025 results on July 11, 2025, delivering resilient performance amid currency headwinds and a mixed market environment. Net sales for the quarter reached SEK 843 million, nearly flat compared to SEK 845 million in Q2 2024, reflecting an organic decrease of 5% due to adverse currency effects and a temporary delay in product deliveries. Order intake increased by 6% to SEK 816 million, with organic growth of 8% as demand improved in core industrial network technology segments, particularly from European customers. The company’s gross margin remained robust at 61.8%, while adjusted EBIT rose to SEK 181 million, yielding a margin of 21.4%, up from 20.4% last year. Profit after tax grew to SEK 84 million, translating to basic earnings per share of SEK 1.67. Operationally, HMS Networks continued integrating recent acquisitions, finalizing the full inclusion of Red Lion and N-Tron into its product portfolio and IT systems. The Americas segment contributed 66% of group net sales, with EMEA at 27% and APAC at 7%. The company maintained strong cash flow from operating activities at SEK 201 million for the quarter, further reducing leverage and supporting ongoing investments in product development and customer focus. Despite a more cautious environment in new industries and automotive, the core business showed steady progress, and management highlighted successful cost control and margin expansion initiatives. Outlook: Fiscal 2025 revenue guidance reaffirmed, with full-year net sales expected to recover in the second half as delayed deliveries and ERP implementation effects unwind. Focus remains on margin expansion, leveraging the robust order backlog, and continued integration of acquisitions. Management expects improved demand in industrial network technology and steady performance in core markets, with ongoing investments in future-proofing product offerings and strengthening competitiveness. About Inside Ticker: For more expert analysis and real-time updates on HMS Networks AB (publ) (STO: HMS) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #HMSNetworks #HMS #Q22025 #Earnings #IndustrialAutomation #OrderIntake #FinancialResults #GrossMargin #EBIT #NetIncome #StockMarket #Investing #InsideTicker #OperationalEfficiency #Integration #RedLion #NTron #CashFlow #BusinessUpdate #Guidance #MarginExpansion #Europe #Americas #APAC #IndustrialIoT #ProductDevelopment #Automation #Sweden #Q2Results #RevenueGrowth #CostControl