STOCKHOLM – Note reported organic sales fell 5% to SEK 1.0 billion ($104.2 million) as strength in its defense end-market was offset by an industrial slowdown.

Operating profit was SEK 93 million, up from SEK 91 million a year ago.

Adjusted operating profit was up SEK 7 million to SEK 100 million, adjusted for revaluations of operating assets and liabilities in foreign currencies, as well as an SEK 18 million provision for restructuring the UK operations in the first quarter of this year.

Operating margin rose 60 basis points to 9.2%, while adjusted operating margin was 10%. Profit after one-time items was SEK 82 million. Net profit was up 1.6% to SEK 65 million.

Cash flow after investments was SEK 156 million.

In a statement, Johannes Lind-Widestam, CEO and president, said, "Note is proud to continue reporting sales in line with our expectations, profitability above the sector and exceptionally strong cash flow."

The security & defense segment grew 23%, offset by the industrial segment due to slow progress in the UK. Note is restructuring is staffing and shutting down one of its four plants in the UK.

"Growth generates profitability, but we’re seeing how our continuous efforts to rationalise and adapt our resources are paying off in higher profitability, despite the market challenges restricting growth temporarily. We think it’s a sign of strength that we achieved underlying profitability for the quarter of 10% despite the challenges we’ve had in our UK operations."

Note guided for second quarter revenue of SEK 950 million to 1.05 billion. For the full year 2025, the EMS provider reiterated guidance of SEK 3.9 billion to 4.3 billion and an operating margin in the 9.5 to 10.5%.

• Prev
• Next