Sweden's MilDef Q3 net sales rises on strong demand for digital infrastructure
Sweden's MilDef Q3 net sales rises on strong demand for digital infrastructure
Overview
Sweden defense IT provider's Q3 net sales rose 54% yr/yr, driven by Swedish and German markets
Adjusted EBITA for Q3 more than doubled, reflecting strong profitability
Order intake in Q3 surged 130% yr/yr, with major orders secured from European defense customers
Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release
MilDef expects continued high demand for defense digital infrastructure
Company says supply chain challenges for electronic components persist
MilDef is expanding production capacity to meet growing order backlog
Result Drivers
ORGANIC GROWTH - Co said Q3 net sales and order intake growth were entirely organic, driven mainly by Swedish and German markets
SYSTEMS AND INTEGRATION SOLUTIONS - Gross margin was positively impacted by higher growth for system and integration solutions, but lowered slightly by increased sales of mobile products
ORDER BACKLOG - Co said strong order backlog and delivery capacity enabled profitable growth
Company press release: ID:nMFN1qccfb
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Gross Margin |
| 45.40% |
|
Q3 Orders |
| SEK 2.09 bln |
|
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 SEK266.25, about 12.2% above its October 21 closing price of SEK237.20
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 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.)