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HMS Networks AB Reports Mixed Earnings Performance
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HMS Networks AB Reports Mixed Earnings Performance

HMS Networks AB ( (HMNKF) ) has released its Q4 earnings. Here is a breakdown of the information HMS Networks AB presented to its investors.

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HMS Networks AB, a leader in the industrial ICT sector, specializes in providing solutions for industrial communication and the Industrial Internet of Things (IIoT), leveraging its brands like Anybus, Ewon, Ixxat, Intesis, Red Lion, and N-Tron.

The latest earnings report from HMS Networks reveals a mixed performance with a significant increase in order intake, driven by acquisitions, and modest growth in net sales. The company completed notable acquisitions, including PEAK-System Technik GmbH, which contributed to its overall growth despite a decrease in organic sales.

Key financial highlights include a 110% increase in order intake for Q4, largely due to acquired growth, while net sales rose by 6%. However, organic net sales saw a decline of 33%, and adjusted EBIT margins dropped from 25.8% to 20.2%. Profitability was affected primarily by restructuring and integration costs, though cash flow remained strong with SEK 177 million generated from operations.

Looking ahead, HMS Networks anticipates improvements in order intake and sales in the latter half of 2025, as inventory adjustments are expected to taper off. With the newly restructured organizational framework and product launches like Ewon Cloud and Edge, the company is strategically positioned for future growth and expansion in the industrial ICT market.

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