NOTE's interim report Q3 2025

Financial performance in July-September
- Sales totalled SEK 830 (809) million. Organic growth was 6% adjusted for currency.
- Operating profit totalled SEK 74 (64) million. Adjusted operating profit totalled SEK 77 (67) million, adjusted for revaluations of operating assets and liabilities in foreign currencies.
- The operating margin totalled EUR 9.01 million (EUR 8.01 million). The adjusted operating margin was 9.31% (8.31%).
- Profit after net financial items totalled SEK 67 (55) million.
- Profit after tax totalled SEK 54 (43) million, corresponding to SEK 1.92 (1.52) per share.
- Adjusted for items affecting comparability, such as investments in the property in Torsby and acquisition-related payments in the comparative period, operating cash flow totalled SEK 121 million (157). Total cash flow after investments totalled SEK 105 (120) million, corresponding to SEK 3.69 (4.21) per share.

Financial performance in January-September
- Sales totalled SEK 2,813 (2,876) million. Organic growth was 0% adjusted for currency.
- Operating profit totalled SEK 268m (254). Adjusted operating profit totalled SEK 271m (256), adjusted for revaluations of operating assets and liabilities in foreign currencies and for a provision of SEK 18m for restructuring of the UK operations in the first quarter of this year.
- The operating margin was 9.51% (8.81%). The adjusted operating margin was 9.61% (8.91%).
- Profit after net financial items totalled SEK 243 (219) million.
- Profit after tax totalled SEK 196 (175) million, corresponding to SEK 6.84 (6.06) per share.
- Adjusted for items affecting comparability, such as investments in the property in Torsby and acquisition-related payments in the comparative period, operating cash flow totalled SEK 379 million (398). Total cash flow after investments totalled SEK 317 (341) million, corresponding to SEK 11.13 (11.97) per share.

CEO comment - It is gratifying that we can now report the growth we have been anticipating for some time. This growth is reflected in our profitability, which continues to strengthen - from an already high level.

" I am pleased to report that we delivered growth in the third quarter. We have seen the turnaround coming for some time but geopolitical tensions, an uncertain economy and changing trading conditions have affected our and many other industries, delaying the recovery. Growth is at the lower end of our expectations, but we know that when the economy and demand grow stronger, we are well positioned to meet it.

Third quarter sales of SEK 830 million represent organic growth of 6%. We have an organisation with a proven ability to combine quality, flexibility and profitability. Now that we are achieving growth, we are seeing our profitability strengthen - and from an already high level. The quarter's underlying operating margin of 9.3% shows that our continuous improvement work is yielding results.

Continued high profitability combined with efficient progress in working capital utilisation meant continued strong cash flows, with SEK 121 million in operating cash flow for the quarter and the equivalent of SEK 379 million for the year. In recent years, we've invested heavily in both capacity and capability to stay ahead of the curve and meet our customers' ever-increasing demands for quality, flexibility and efficiency. At the end of the quarter, we completed our single largest investment for NOTE when we signed an agreement to acquire UK EMS provider Kasdon. The deal, which is expected to be finalised in early Q4, strengthens our position in the UK market and adds strategic breadth in a segment with high demand. Kasdon has ambitious growth plans for the coming years combined with high profitability.

The market remains hesitant, which leads to caution among customers and delays the recovery. A more uncertain market situation means that many customers are waiting to place orders. Adjusted for currency, the total order book is unchanged from last year. Overall, we expect fourth quarter sales in the range of SEK 1,000 - 1,050 million, including a negative currency impact of SEK 30-40 million, with an operating margin in the range of 10.0-11.0%. Given the positive industry drivers, our strong position as an EMS partner and an efficient organisation, we are ready to meet the demand going forward”, says Johannes Lind-Widestam, President and CEO.

NOTE's Interim Report for Q3 2025 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 presentation for analysts, media and investors at 10:00 a.m. CET today, where President and CEO Johannes Lind-Widestam will present the report. The year-end report for January-December will be presented on 26 January.

About NOTE
NOTE manufactures printed circuit boards (PCBA), sub-assemblies and complete products (box build). NOTE is a competitive electronics manufacturer and a stable business partner to customers with high standards. Its products are found in complex systems for electronic control, monitoring and security, for example.

The business model is based on offering advanced manufacturing, customised logistics solutions and advice at the best possible total cost through long-term customer relationships and partnerships. The customer offering covers the entire product life cycle, from design to aftermarket. Customers are primarily large companies operating on the global market, but also companies with their primary sales in northern Europe.

NOTE is established in Sweden, Finland, the UK, Estonia, Bulgaria and China. Sales in the last 12 months totalled SEK 3,849 million and the group has some 1,450 employees. NOTE is listed on Nasdaq Stockholm. For more information, please visit www.note-ems.com.

Interim report Q3 2025