This article first appeared on GuruFocus .
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Net Sales Growth:72% increase in the quarter, 42% organic growth.
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Year-to-Date Growth:53% increase, 35% organic growth.
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Adjusted EBIT Margin:47% in the quarter, up from 40.4% last year.
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Gross Margin:74.1% in the quarter, compared to 74.2% last year.
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Operating Cash Flow:SEK62 million in the quarter, up from SEK18 million last year.
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Sports Category Growth:51% net sales growth, 40% organic growth.
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Moto Category Growth:80% net sales growth, 56% organic growth.
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Safety Category Growth:604% net sales growth, 80% organic growth.
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Cash and Cash Equivalents:SEK187 million.
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Dividend Payout:SEK66 million in April, SEK2.5 per share.
Release Date: July 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Mips AB ( MPZAF ) reported a strong 72% growth in net sales for Q2 2026, with 42% organic growth.
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The company achieved a significant 47% adjusted EBIT margin, showcasing strong profitability.
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The Koroyd acquisition is developing well, contributing to growth and expanding the product portfolio.
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Strong performance in the Sports category, with 51% net sales growth driven by the Bike and Snow subcategories.
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The Safety segment saw a remarkable 604% net sales growth, with an 80% organic growth rate, boosted by the Koroyd acquisition.
Negative Points
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Legal costs impacted operating expenses, with SEK12 million spent in Q2, and a USD 3.25 million settlement expected to affect Q3.
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Despite strong growth, the EBIT margin target of 50% is not expected to be reached this year.
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The US market remains challenging, with flat market conditions and inventory levels at a historic low.
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Koroyd's gross margin is lower than Mips AB ( MPZAF )'s, which could impact overall profitability.
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The company faces ongoing challenges in managing acquisitions and ensuring successful integration.
Q & A Highlights
Q: Could you give us a sense of the current market environment in the US, particularly regarding growth and price segments? A: Max Strandwitz, CEO: The market seems to have flattened out, with no decline but also no significant growth. The premium segment remains strong, with consumers willing to pay for innovations. There's also potential in the lower price segment due to inflation, which increases our ability to integrate Mips solutions into more helmets.
Q: Are inventory levels in the US still low, and what does that mean for Mips' growth? A: Max Strandwitz, CEO: Inventory levels are at their lowest in four years, which is favorable for Mips. This low inventory level presents multiple growth opportunities for us moving forward.
Q: What is driving the strong organic sales growth in the Safety segment? A: Max Strandwitz, CEO: The main driver is the rollout of the full-brim helmets, which have been well-received in the market. We also see good development in our base assortment.
Q: How is the Koroyd acquisition impacting Mips' gross margin and business segments? A: Max Strandwitz, CEO: Koroyd has a slightly lower gross margin than Mips, but it remains a profitable business. We see strong development in the Safety segment and good performance in the Snow market. Our goal is to maintain a gross margin above 70%.
Q: What are the expectations for Mips' profitability and EBIT margin for the rest of the year? A: Max Strandwitz, CEO: We aim to maintain an EBIT margin above 50%, but reaching that this year might be a stretch. We are focusing on achieving over 30% growth, and profitability should improve with growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
