This article first appeared on GuruFocus .
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Revenue:SEK218 million in Q2, a reported decline of 3% and a 0.8% currency-adjusted decline.
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Operational Cash Flow:SEK88 million in Q2, more than the last four quarters combined.
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Net Debt:Reduced to SEK192 million in Q2.
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Earnings Per Share (EPS):Improved from negative SEK0.46 to positive SEK0.66 in Q2.
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EBITDA Margin:25% in Q2, with a 30% margin for the first half of 2026.
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Growth Portfolio:11% growth in Q2.
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Currency-Adjusted Net Sales Growth:6% for the first half of the year.
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New Customers:Five new customers added in Q2, four in the growth portfolio and one in the classic portfolio.
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Adjusted EBIT Margin:9% in Q2.
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R&D Spend:Maintained at the same level to stay competitive.
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Release Date: July 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Enea AB ( LTS:0RP6 ) reported an 11% growth in their growth portfolio for Q2 2026.
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The company achieved a strong operational cash flow of SEK88 million, surpassing the total of the last four quarters combined.
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Enea AB added five new customers in Q2, with four in the growth portfolio and one in the classic portfolio.
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The government sector is a growing vertical for Enea AB, with the addition of an Asian government customer.
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The company is accelerating its AI capabilities and enhancing its offerings, particularly in national security and defense.
Negative Points
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Net sales in Q2 2026 declined by 3% reported and 0.8% currency adjusted, indicating a flat quarter year-over-year.
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The EBITDA margin decreased to 25% due to increased costs and investments in strategy execution.
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Geopolitical challenges in the Middle East have created unpredictability, causing deal slippages.
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Recurring revenue fell by 8% quarter-over-quarter, attributed to business dynamics and deployment delays.
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The classic portfolio experienced a decline, with Network Access Control seeing a 31% decrease in fixed currency.
Q & A Highlights
Q: How do you view the current market environment, particularly in the telecom side of your business, and have you seen any impact from rising input component prices? A: Teemu Salmi, CEO: Rising input component prices are a topic of discussion with our telecom customers. We are working on innovative solutions to utilize existing hardware and reduce hardware footprint requirements. While we haven't seen a significant impact on software prices yet, it remains a potential risk moving forward.
Q: Regarding the deal slippage you mentioned, do you anticipate these deals to close before year-end? A: Teemu Salmi, CEO: While I expect the deals to close within the year, the ongoing geopolitical situation in the Gulf presents a risk. However, the necessity for our customers to deploy these solutions remains high.
Q: Is your net working capital now at a normalized level, or could we see further improvements? A: Ulf Stigberg, CFO: We aim to lower our working capital during the year, especially as we continue business in the Middle East and Africa, where longer deal cycles are common. We are starting to see some improvements as older business converts to cash.
Q: Can you explain the recurring revenue decline of 8% quarter-over-quarter? A: Teemu Salmi, CEO: The decline is due to the business mix in the quarter. Over the longer term, we do not anticipate a significant shift. Ulf Stigberg, CFO, added that delays in project deployments affect the activation of support and maintenance, impacting recurring revenue figures.
Q: Why are you pausing share buybacks despite a good net debt level? A: Teemu Salmi, CEO: The decision to pause buybacks is more for the Board to decide. We are focusing on using our operating cash flow to pay down debt and invest in growth. The pause is temporary, and future decisions will depend on discussions with the Board.
Q: When will the ramp-up in the number of employees be visible in revenues? A: Teemu Salmi, CEO: We expect to see an acceleration in the second half of 2026, with the full effect of our sales team ramp-up visible by the end of 2027. Our sales cycles are typically 12 to 18 months, so the impact will be gradual.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
