Sweden's MilDef Q3 sales surge on increased delivery rate
Sweden's MilDef Q3 sales surge on increased delivery rate
Overview
Sweden defense IT provider's preliminary Q3 sales grew 53% yr/yr to SEK 825 mln
Order intake for Q3 rose 130% yr/yr
Free cash flow was negative, impacted by inventory build-up and higher accounts receivables
Outlook
MilDef estimates remaining 2026 order book delivery value at about SEK 920 mln
Company expects higher working capital needs due to inventory build-up for Q4 deliveries
MilDef expects capacity investments to support more consistent delivery flow going forward
Result Drivers
HIGH DELIVERY RATE - Co said increased delivery rate from capacity investments drove Q3 results
OPERATIONAL EFFICIENCY - Co said capacity investments improved operational efficiency and delivery flow
OPERATIONAL LEVERAGE - Co attributed improved profitability to increased sales and operational leverage
Company press release: ID:nMFNbhlZvD
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| SEK 825 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for MilDef Group AB is SEK241.25, about 9.7% above its October 14 closing price of SEK220.00
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago
Reuters Recommended Reads
Oct 15 - Sweden's AQ Group Q3 sales beat estimates on defense, data center demand
Oct 14 - Swedish forensic tech firm Micro Systemation's prelim Q3 operating profit surges
Oct 15 - Ericsson braces for component cost hit after third-quarter profit beat
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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.)