NOTE's interim report Q1 2026

Financial performance in January-March
- Sales totalled SEK 962 (1 003) million. Organic growth was -6% adjusted for currency and acquisitions.
- Operating profit totalled SEK 84 (93) million. Adjusted operating profit totalled SEK 88 (100) million, adjusted for revaluations of operating assets and liabilities in foreign currencies and non-recurring items.
- The operating margin was 8.71 FTEs (9.21 FTEs). The adjusted operating margin was 9.11% (10.01%).
- Profit after net financial items totalled SEK 65 (82) million.
- Profit after tax totalled SEK 52 (65) million, corresponding to SEK 1.83 (2.27) per share.
- Adjusted for items affecting comparability, such as acquisition-related payments and investments in the property in Torsby, operating cash flow totalled SEK 46 million (178). Total cash flow after investments amounted to SEK -776 (156) million, corresponding to SEK -27.18 (5.48) per share.
 
CEO commentary - With the acquisition of STI, we become one of the larger subcontractors to the defence industry in Europe, giving us a platform to build on. We see this acquisition as strategically important and transformative for NOTE as a whole.
 
"We completed the acquisition of STI, the UK's leading EMS partner for the defence industry, at the end of the quarter, which we see as transformative for NOTE as a whole. This is a strategically important acquisition that complements our existing structure and strengthens our offering to both existing and new defence customers in Europe. We're adding several of Europe's leading defence companies to our established partnerships in Security & Defence-a strategically important segment for NOTE.  
 
Sales during the quarter totalled SEK 962 million, which was slightly above the range we communicated in our outlook for the quarter. We had expected a weak start to the year, as several of our customers saw a continued cautious market linked to uncertainty in the world around us. Security & Defence is the customer segment with the strongest underlying demand. Given the demand that exists in the market and the ramp-up that is taking place in the area, we continue to take strategically important steps that strengthen our long-term position together with our customers.
 
In the quarter, we achieved an underlying operating margin of 9.11 per cent, which was slightly above the range we provided in our outlook. Growth generates profitability and we recognise that when uncertainty in the market holds back growth, it has a certain negative impact on our operating margin. We have also consciously chosen to strengthen our investments in the sales organisation to increase the pace of business won.
 
NOTE continues to have a strong financial position, with an equity to assets ratio of around 35 per cent at the end of the quarter. We have generated strong operating cash flow in recent years, and expect this to continue this year. Operating cash flow for the quarter was SEK 46 million, constrained by lower volumes and an incremental increase in working capital.
 
Although the start of the year has been characterised by caution, we are confident about future developments. Our order backlog for the current year at the end of the quarter was 11% higher than at the same time last year, for the corresponding units. Our view for the full year 2026 remains that we expect a gradual strengthening during the year. In addition, there will be volumes from the acquired company STI.", says Johannes Lind-Widestam, President and CEO.
 
NOTE's Interim Report for Q1 is available from today in PDF format on its website, www.note-ems.com, and is attached to this press release. NOTE is organising a webcast presentation for analysts, media and investors today at 10:00 CET, where President and CEO Johannes Lind-Widestam and CFO Frida Frykstrand will present the report. The interim report for Q2 will be presented on 15 July.