Sweden's 4C Group Q1 net sales fall 34% on timing and revenue recognition changes

4C AB

29/04/2026 07:18

Overview

Sweden organisational readiness provider's Q1 net sales fell 34% yr/yr on timing and revenue recognition changes

Q1 EBIT turned negative, impacted by lower revenue and SEK 4 mln restructuring cost

Order intake in Q1 was strong, weighted toward defense, but revenue delayed by contract timing

Outlook

Company expects defense exercise volumes to return to normal levels from Q2 onward

4C Group says procurement cycles are lengthening in several European countries as volumes grow

Company says approval of U.S. defense budget has improved predictability in North America

Result Drivers

CONTRACT TIMING & DELAYS - Revenue fell due to the absence of a large U.S. software deal in the prior year and delays in closing several expected defense contracts, including NATO and U.S. deals, per CEO

REVENUE RECOGNITION CHANGE - Updated revenue recognition principles reduced reported revenue by about SEK 12 mln in the quarter, per CEO

LOWER EXERCISE ACTIVITY - Revenue in defense was held back by temporarily lower exercise activity, particularly in the UK, per CEO

Company press release: ID:nMFN3M70SB

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
SEK 60.10 mln
SEK 84 mln (1 Analyst)
Q1 Net Income
-SEK 17.80 mln
Q1 EBIT
-SEK 20.40 mln
Q1 EBIT Margin
-34.00%


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for 4C Group AB is SEK15.00, about 47.3% above its April 28 closing price of SEK10.18

The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 30 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)