This article first appeared on GuruFocus .
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Revenue:Reported sales increased 18.7% to SEK635 million, with organic growth of 7.4%.
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EBITA:SEK41 million, up SEK16.8 million year-over-year.
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EBITA Margin:6.4%, up 1.9% from the prior year.
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Earnings Per Share:SEK1.3, more than doubled from SEK0.7 last year.
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Inission EMS Revenue:Turnover up 18.9% to SEK546 million, with organic growth of 7.4%.
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Inission EMS EBIT:SEK36.4 million, up from SEK28.8 million last year, with a margin of 6.7%.
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Inission Power Revenue:Sales of SEK89 million, up 18% organically.
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Inission Power EBITA:SEK3.8 million, compared to a loss of SEK4.7 million last year, with a margin of 4.3%.
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Net Debt/EBITDA:2.1%.
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Release Date: August 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Reported sales increased 18.7% to SEK635 million, with organic growth of 7.4%.
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EBITA rose to SEK41 million, up SEK16.8 million year-over-year, with margin improving to 6.4%.
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Inission Power turned profitable with EBITA of SEK3.8 million, a significant improvement from a loss of SEK4.7 million last year.
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Strong order book and customer demand support a confident outlook for H2, with expectations to reach the higher end of the SEK2.3-2.5 billion sales target.
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Defense sector sales grew from 7% to 12-13% of total sales, with growing contracts and ambitions to expand further.
Negative Points
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Component shortages and longer lead times, especially for PCBs, are causing supply chain constraints and inventory build-up.
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Inventory levels increased due to pre-buying materials ahead of autumn deliveries, tying up capital.
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A data breach leaked personal and shareholder data of former Enedo/Efore entities, posing reputational and legal risks.
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Inission EMS EBIT margin of 6.7% in Q2 remains slightly below the 7% target, though H1 is at 7.2%.
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M&A activity is slower than desired, with the company losing bids due to valuation gaps, limiting inorganic growth.
Q & A Highlights
Q: The company left its guidance unchanged despite flagging a H2 run rate of SEK210-220 million per month, which would put it above the top of the guidance range. Why not raise the guidance? A: Fredrik Berghel, CEO, cited prudence and confidence in reaching the SEK2.5 billion target. He noted that July is typically a half-month for Nordic factories, which affects the run rate, but acknowledged a good order book and the potential to overshoot the goal.
Q: Will there be any costs associated with the data breach that was press released earlier this month? A: Fredrik Berghel, CEO, clarified that there are no operational costs or losses from the breach, which occurred when security consultants in Italy left a door open, exposing Inission Power (formerly Enedo/Efore) data. The company has contacted employees and former employees, and the press release was triggered by the leak of shareholder data, which they could not directly contact. No financial costs are associated with the incident.
Q: Can you discuss the PCB lead times and general component shortage situation, and what should be expected in H2? A: Fredrik Berghel, CEO, explained that longer lead times on some items make planning more difficult, especially for 12-18 month horizons. PCB deliveries have improved but remain constrained. Factories are protecting deliveries by building inventory, which is a challenging balancing act given typical bills of material have 100 rows. The company remains optimistic but aware that conditions can change quickly.
Q: Was the inventory build-up in the quarter related to these shortages? A: Fredrik Berghel, CEO, stated that the build-up is partly due to a growing order book for autumn deliveries. A significant portion is related to the Norwegian factory in Lokken and its customer Kongsberg, which has extended its order horizon to 18 months due to fears of supply disruptions. Kongsberg is booming with a three-year order book, driving the need to secure materials.
Q: Is the target ahead focused more on increasing EBIT margin or growing with acquisitions, and what would the EBITDA level be without acquisitions? A: Fredrik Berghel, CEO, said the company is shifting focus to organic growth while slowing acquisition speed and focusing on higher quality deals. He estimated that EBIT margin could be 2-4% higher if they stopped acquisitions entirely, but emphasized a balanced approach. The company is proud of its growth journey and profitability, especially excluding Inission Power.
Q: Are you working on any defense contracts that may lead to higher volume in the near future? A: Fredrik Berghel, CEO, confirmed active work with Kongsberg, a top 5 customer, and its defense division. They have test orders and real business in Halden and Lokken with Kongsberg Defense and Aerospace, with hopes for volume improvements. Other top customers like FalCom and INVISIO, which supply communication and hearing protection devices to armies, are also growing rapidly.
Q: Can you provide further comments on the underlying demand from customers outside the defense and data center sectors? A: Fredrik Berghel, CEO, described demand as stable, with Norwegian operations more Kongsberg-related and growing quicker. Swedish companies with more traditional industry customers are seeing clear signs of demand returning, despite uncertainties from geopolitical events. The underlying demand in the general industry is improving.
Q: Absent large defense contracts directly, will the boom for peers like Kitron spill over to Inission? Are there volumes competitors lack capacity for that you could bid on? A: Fredrik Berghel, CEO, said not in the near term, but long-term, larger competitors with high entry tickets (SEK50-100 million) create room for medium players like Inission. A SEK15 million contract is significant for an Inission factory, and as bigger players move upward, opportunities arise for the company, though quantifying this is difficult.
Q: What share of sales are now related to defense and data centers? A: Fredrik Berghel, CEO, reported defense sales increased from 7% to 12-13% last year and continue to grow. The company does not have a specific data center segment, but electrification is a major driver, with top 5 customers like ABB performing extremely well. New contracts with Eaton also position the company to benefit from electrification growth.
Q: The M&A pipeline is growing; is there a particular driving force or shift in sentiment among sellers? A: Fredrik Berghel, CEO, noted a record high number of "hot" deals in the pipeline, defined as concrete sales. The improving economy and higher activity compared to 2024-25 make it easier for sellers to argue for better future performance. The company remains a cautious bidder, with multiples of 4-5x EV/EBITDA, and has increased its multiples but is still selective. Opportunities are being scouted in Denmark and Finland.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
