This article first appeared on GuruFocus .
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Net Sales Growth:30% increase in Q1 2026.
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Organic Growth:25% after adjusting for acquisition and Forex impact.
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Adjusted EBIT Margin:33.2%, up from 28.8% last year.
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Gross Margin:71.1%, compared to 72.1% last year.
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Operating Cash Flow:SEK18 million, impacted by higher customer receivables.
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Legal Costs:SEK7 million in Q1 2026.
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Cash and Cash Equivalents:SEK180 million at the end of the quarter.
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Net Debt to Adjusted EBITDA:0.3 times, below the covenant of 2.0 times.
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Dividend Proposal:SEK2.5 per share, 55% of Group's net earnings for 2025.
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Sports Category Growth:24% net sales growth, 28% organic growth.
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Moto Category Growth:33% net sales growth, 16% organic growth.
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Safety Category Growth:135% net sales growth, 6% organic growth.
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Warning! GuruFocus has detected 4 Warning Signs with STU:7M1.
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Release Date: April 23, 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 ( STU:7M1 ) reported a strong start to the year with a 30% growth in net sales for Q1 2026, achieving 25% organic growth when adjusted for acquisitions and Forex impacts.
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The company achieved a 33% adjusted EBIT margin, marking a 50% increase in EBIT compared to the previous year.
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All three business categoriesSports, Moto, and Safetyexperienced growth, with notable performance in the European and North American markets.
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The integration of the Koroyd business, acquired in December, has been successful, contributing positively to the company's portfolio and market interest.
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Mips AB ( STU:7M1 ) maintained strong performance in the Bike segment, achieving volume growth for the tenth consecutive quarter.
Negative Points
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Mips AB ( STU:7M1 ) faced SEK7 million in legal costs related to a U.S. legal dispute, impacting profitability.
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The company experienced a negative Forex impact due to a stronger SEK versus the US dollar, affecting net sales by 13%.
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Organic growth in the Safety category was slower than expected at 6%, although the company anticipates improvement later in the year.
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The acquisition of Koroyd had a dilutive effect on the gross margin and EBIT margin in Q1.
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Operating cash flow was impacted by higher customer receivables due to later invoicing related to the Chinese New Year.
Q & A Highlights
Q: Can you provide more details on the U.S. market growth and MIPS penetration during Q1? A: The U.S. market remains flattish with potential low single-digit growth. However, MIPS penetration continues to increase, driving demand. In Q4, 25 new helmets were launched, and 20 of those included MIPS technology, indicating strong market penetration. (Max Strandwitz, CEO)
Q: With inventory destocking behind us and lower Forex headwinds, can we expect revenue and earnings growth to accelerate in Q2? A: Yes, we had a 33% volume growth in Q1, and we expect to deliver in line with our long-term ambition of over 30% organic growth annually. There is no reason why we shouldn't achieve this in 2026. (Max Strandwitz, CEO)
Q: What is driving the expected acceleration in organic growth for the Safety category, and when should we expect it? A: We expect higher growth driven by a strong portfolio launch, especially in the U.S. market with full brim helmets. We anticipate seeing this growth pick up in the coming quarters, particularly in Q3 and Q4. (Max Strandwitz, CEO)
Q: Can you share the EBIT margin for Koroyd in Q1, and are you confident in the 45% EBITDA margin for the full year? A: Koroyd's EBIT margin was flat in Q1, which is normal for their seasonally smallest quarter. We remain confident in achieving a 45% EBITDA margin for the full year, as it is a very profitable business. (Max Strandwitz, CEO)
Q: How are legal costs impacting your financials, and is there any update on the legal dispute? A: Legal costs are more timing-related, with around SEK10 million per quarter expected. We are preparing for court, and the legal dispute is expected to continue into 2027. We have adjusted our financials to reflect these costs for transparency. (Max Strandwitz, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
