HMS Networks posts record quarter as Molex acquisition boosts growth

HMS Networks AB ( (SE:HMS) ) just unveiled an announcement.

HMS Networks reported a strong first quarter of 2026, with order intake rising 19% to SEK 1,108 million and net sales up 9% to a record SEK 971 million, driven by 15% organic sales growth and broad-based demand across all divisions and regions. Profitability improved markedly, as the EBITA margin expanded to 27.2%, profit after tax increased to SEK 163 million and operating cash flow strengthened, while net debt leverage fell as the group adopted EBITA as its primary earnings metric.

The recent acquisition of Molex’s industrial communications business contributed to a sharp recovery in the Industrial Network Technology division, where orders surged 73% and the acquired unit is expected to outperform earlier 2026 expectations despite starting without an order backlog. Management highlighted rising development investments, ongoing AI-driven efficiency initiatives and proactive inventory measures amid tighter semiconductor supply and geopolitical tensions, positioning HMS to benefit from long-term trends in automation, digitalization and regionally diversified industrial production.

The most recent analyst rating on (SE:HMS) stock is a Buy with a SEK515.00 price target. To see the full list of analyst forecasts on HMS Networks AB stock, see the SE:HMS Stock Forecast page.

More about HMS Networks AB

HMS Networks AB is a Sweden-based industrial communication and IIoT solutions provider serving manufacturers and automation customers worldwide. The company focuses on products that enable connectivity, data integration and digitalization in industrial environments, with key divisions including Industrial Data Solutions, Industrial Network Technology and New Industries.

Average Trading Volume: 69,900

Technical Sentiment Signal: Strong Buy

Current Market Cap: SEK24.2B

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