STOCKHOLM, SWEDEN – NOTE reported first quarter sales of SEK 962 million ($88 million), down 6% organically year-over-year, as cautious market conditions weighed on demand despite continued strength in defense-related business.

Operating profit totaled SEK 84 million ($7.7 million), with an adjusted operating margin of 9.1%, slightly below last year’s level. Profit after tax came in at SEK 52 million ($4.8 million).

The quarter was highlighted by the completion of NOTE’s acquisition of STI, a UK-based EMS provider focused on defense, which the company described as a “transformational” move. The deal expands NOTE’s position in the security and defense segment, now its strongest growth area.

While broader market demand remained soft, particularly at the start of the year, NOTE said its order backlog is up 11% year-over-year, supporting expectations for gradual improvement through 2026.

The company said it continues to invest in sales capabilities and expects demand in defense markets to support future growth.