Sweden's 4C Group reports rise in Q2 sales on strength in software growth, cost-savings

4C AB

09/07/2026 07:05

Overview
Sweden organisational readiness software firm's Q2 net sales rose 26% yr/yr
Q2 EBIT turned positive, reflecting cost-saving programme effects
Company signed SEK 700 mln UK defence contract, boosting order book

Outlook
Company expects volatility in financial performance to persist due to procurement bottlenecks
4C Group prioritizes strengthening profitability, cash flow and growth in Defence segment
Company sees European defence investments increasing, but implementation remains uneven

Result Drivers
MILITARY EXERCISE ACTIVITY - Return to normal military exercise activity levels boosted revenue in Q2
SOFTWARE REVENUE GROWTH - Software revenue rose 52% yr/yr and made up 67% of net sales in Q2
COST-SAVING PROGRAMME - Q2 was first quarter to fully reflect cost-saving measures, lowering total costs by about 10% yr/yr

Company press release: ID:nMFN3FvLLh

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
SEK 95.40 mln
SEK 74 mln (1 Analyst)
Q2 Net Income
 
SEK 15.10 mln
 
Q2 EBIT
 
SEK 13.20 mln
 
Q2 EBIT Margin
 
14.00%
 

Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for 4C Group AB is SEK8.25, about 16% below its July 8 closing price of SEK9.82
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 31 three months ago

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(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.)