NOTE Releases Q2 2026 Interim Report

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NOTE reported record second quarter sales of SEK 1,175 million in 2026, up 20% year over year, driven by the acquisitions of STI and Kasdon and continued strength in its Security & Defence and Industrial segments.

Financial performance in April-June

• Sales amounted to SEK 1,175 (980) million, an increase of 20%. Organic growth was 1%, adjusted for currency and acquisitions.
• Operating profit amounted to 90 (101) MSEK. Adjusted operating profit amounted to SEK 112 (94) million, excluding revaluations of operating assets and liabilities denominated in foreign currencies and non-recurring items.
• The operating margin stood at 7.7% (10.3%). The adjusted operating margin stood at 9.6% (9.6%).
• Profit after net financial items amounted to SEK 69 (94) million.
• Profit after tax amounted to 56 (76) MSEK, corresponding to 1.95 (2.65) SEK per share.
• Excluding items affecting comparability, such as investments in the property in Torsby during the comparative period, operating cash flow amounted to -34 (82) MSEK. Total cash flow after investments amounted to SEK -34 (58) million, corresponding to SEK -1.19 (2.04) per share.

Financial performance in January-June

• Sales amounted to SEK 2,137 (1,983) million, an increase of 8%. Organic growth was -2%, adjusted for currency and acquisitions.
• Operating profit amounted to 174 (194) MSEK. Adjusted operating profit amounted to SEK 200 (194) million, excluding revaluations of operating assets and liabilities denominated in foreign currencies and non-recurring items.
• The operating margin stood at 8.1% (9.7%). The adjusted operating margin stood at 9.4% (9.8%).
• Profit after net financial items amounted to SEK 134 (176) million.
• Profit after tax amounted to 108 (141) MSEK, corresponding to 3.78 (4.93) SEK per share.
• Excluding items affecting comparability, such as acquisition-related payments and investments in the property in Torsby, operating cash flow amounted to 12 (260) MSEK. Total cash flow after investments amounted to SEK -810 (214) million, corresponding to SEK -28.37 (7.51) per share.

CEO commentary - This quarter marks an important milestone for NOTE, as we have achieved our highest-ever sales and growth of 20%.

”During the first half of the year, NOTE has taken several strategically important steps that strengthen our position for long-term growth. Through the acquisition of STI, we have broadened our offering and established an even stronger position within Security & Defence. At the same time, we have continued to invest in our existing operations. In the second quarter, we opened our new factory in Torsby, which doubles our production capacity and enables us to take on larger and more advanced projects.”.

The second quarter marks an important milestone for NOTE. Together with our recent acquisitions, STI and Kasdon, we achieved our highest ever sales and growth of 20%. The acquisitions are performing in line with our expectations, and a large proportion of the growth comes from Security & Defence, where both STI and Kasdon hold leading positions in their respective fields. We are also seeing good organic growth in both Security & Defence and our largest customer segment, Industrial. We had even higher ambitions, but a tighter materials market has had an impact on the volumes we have been able to achieve.

Our operations are characterised by a high degree of flexibility, efficient use of resources and the ability to adapt capacity to customers’ needs, which creates favourable conditions for combining growth with stable profitability over time. During the quarter, we achieved an underlying operating margin of 9.6%, which is within the range we had anticipated.

NOTE continues to enjoy a strong financial position, with an equity ratio of 37 per cent at the end of the quarter. We have generated strong operating cash flows for many years and see continued favourable conditions for this over time. During the quarter, cash flow was negatively affected by increased working capital requirements, primarily due to higher stock levels, driven by longer lead times and limited availability of certain electronic components. Operating cash flow for the quarter amounted to SEK -34 million, and we are clearly focused on strengthening cash flow during the second half of the year.

Our order book for the current year stood at 11% at the end of the quarter, which was higher than at the same time last year for the corresponding units. In the second half of the year, we expect organic growth to increase gradually. In addition to this, there will be volumes from STI.”, says Johannes Lind-Widestam, President and CEO.

NOTE’s interim report for Q2 is available from today in PDF format on the website, www.note-ems.com, and is attached to this press release. Today at 10.00 CET, NOTE will host a webcast presentation for analysts, the media and investors, during which President and CEO Johannes Lind-Widestam and CFO Frida Frykstrand will present the report. The Q3 interim report will be presented on 23 October.

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