Sweden's NOTE Q1 sales beat estimates on defence segment strength

Note AB (publ)

23/04/2026 07:18

Overview

Sweden EMS provider's Q1 sales declined yr/yr but beat analyst expectations

Adjusted operating margin for Q1 fell to 9.1% from 10.0% amid market uncertainty

Company completed acquisition of STI, expanding defence industry partnerships

Outlook

Company expects gradual improvement through 2026, supported by higher order backlog

Order backlog for the current year was 11% higher than the previous year

Company expects to continue generating high operating cash flows in the current year

Result Drivers

MARKET HESITANCY - Co said several customers anticipated continued market hesitancy due to an uncertain business environment, limiting growth

DEFENCE SEGMENT DEMAND - Security & Defence segment showed strongest underlying demand, supporting results

STI ACQUISITION - Acquisition of STI expanded co's defence industry partnerships and is seen as transformational, per CEO

Company press release: ID:nMFN6wMXPz

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
SEK 962 mln
SEK 950.27 mln (3 Analysts)
Q1 EPS
SEK 1.83
Q1 Net Income
SEK 52 mln
Q1 Operating Margin
8.70%
Q1 Operating Profit
SEK 84 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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

Wall Street's median 12-month price target for Note AB (publ) is SEK203.00, about 2.9% above its April 22 closing price of SEK197.20

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 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.)