NOTE’s Interim Report for Q2 2026
Financial performance in April–June
• Sales amounted to SEK 1,175 (980) million, a 20% increase. Organic growth was 1%, adjusted for currency and acquisitions.
• Operating profit was SEK 90 (101) million. Adjusted operating profit was SEK 112 (94) million, adjusted for revaluations of operating assets and liabilities denominated in foreign currencies and non-recurring items.
• The operating margin amounted to 7.7% (10.3%). The adjusted operating margin was 9.6% (9.6%).
• Profit after financial items was SEK 69 (94) million.
• Profit after tax amounted to SEK 56 (76) million, corresponding to SEK 1.95 (2.65) per share.
• Adjusted for items affecting comparability, such as investments in the property in Torsby, Sweden, in the comparative period, operating cash flow amounted to SEK -34 (82) million. Total cash flow after investments amounted to SEK -34 (58) million, or SEK -1.19 (2.04) per share.
Financial performance in January-June
- Sales amounted to SEK 2,137 (1,983) million, an 8% increase. Organic growth was -2%, adjusted for currency and acquisitions.
• Operating profit was SEK 174 (194) million. Adjusted operating profit was SEK 200 (194) million, adjusted for 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 was 9.4% (9.8%).
• Profit after financial items was SEK 134 (176) million.
• Profit after tax amounted to SEK 108 (141) million, corresponding to SEK 3.78 (4.93) per share.
• Adjusted for items affecting comparability, such as acquisition-related payments and investments in the property in Torsby, Sweden, in the comparative period, operating cash flow amounted to SEK 12 (260) million. Total cash flow after investments amounted to SEK -810 (214) million, or SEK -28.37 (7.51) per share.
CEO's comment - The second quarter marks a major milestone for NOTE, as we reported our highest-ever sales and growth of 20%.
“In the first half of the year, NOTE took several major strategic steps that consolidate our position for long-term growth. Our acquisition of STI has expanded our offering, securing an even stronger position in Security & Defence. At the same time, we have continued to invest in our existing business. In the second quarter, we opened our new plant in Torsby, Sweden, which doubles our production capacity and enables us to take on larger and more complex projects.
The second quarter marks a major milestone for NOTE. Alongside our recent acquisitions, STI and Kasdon, we achieved our highest-ever sales figure and growth of 20%. These acquisitions are performing as expected, and a significant proportion of our growth is coming from the Security & Defence sector, where STI and Kasdon are both leaders in their respective segments. In organic terms too, we are seeing healthy growth in Security & Defence, as well as in our largest customer segment, Industrial. Although our ambitions remain higher, a tighter market for materials has had an impact on the volumes we have produced.
Our business is characterised by a high degree of flexibility, the efficient use of resources and the ability to adapt capacity to customer needs, creating good potential to combine 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 remains in a strong financial position, and its equity-to-assets ratio stood at 37% at the end of the quarter.
We have generated strong operating cash flows for many years and still see great potential to continue this over time. During the quarter, cash flow was negatively affected by increased working capital tied up, mainly due to higher inventory levels, driven by longer lead times and the limited supply of certain electronic components. Operating cash flow for the quarter was SEK -34 million, and we are clearly focused on improving cash flow in the second half of the year.
”At the end of the quarter, our order backlog for the current year was 11% higher than at the same point in the previous year, on a like-for-like basis. In the second half of the year, we expect organic growth to increase progressively, and to this we can also add the volumes from STI.”, says Johannes Lind-Widestam, CEO and President
NOTE’s Interim Report for Q2 is now available in PDF format on the company’s website, www.note-ems.com, and attached to this message. Today at 10.00 CET, NOTE is organising a live-streamed presentation for analysts, the media and investors, at which CEO and President Johannes Lind-Widestam and CFO Frida Frykstrand will present the report. The Interim Report for July–September will be published on the 23rdrd of October.