Mips grows sales and buys Koroyd but trims dividend on weaker margins

MIPS AB ( (SE:MIPS) ) has issued an announcement.

Mips AB reported modest top-line growth in 2025, with net sales rising 10% to SEK 533m and organic growth reaching 21%, driven by continued demand for its helmet safety systems across segments. However, profitability came under pressure as the EBIT margin fell to 29.2% from 36.1%, earnings per share declined to SEK 4.53, and the board proposed cutting the dividend to SEK 2.50 per share, corresponding to 55% of annual net profit.

In the fourth quarter, net sales inched up 2% to SEK 147m but organic growth was a stronger 18%, while adjusted operating profit and margins declined year on year. The December acquisition of Koroyd, with annual sales of about SEK 120m, marks a strategic expansion of Mips’ portfolio in impact protection technologies and is set to reinforce its market position, even as the company balances growth investments with more cautious shareholder payouts.

Mips’ cash flow from operating activities improved slightly to SEK 148m for the full year, underscoring solid underlying cash generation despite lower margins. With net debt at 0.5 times adjusted EBITDA, the balance sheet remains relatively conservative, giving the company room to integrate Koroyd and potentially pursue further growth initiatives in the global helmet safety market.

The most recent analyst rating on (SE:MIPS) stock is a Buy with a SEK315.00 price target. To see the full list of analyst forecasts on MIPS AB stock, see the SE:MIPS Stock Forecast page.

More about MIPS AB

Mips AB is a Swedish technology company specializing in helmet safety systems designed to reduce rotational motion to the brain during impacts. Its solutions are integrated into helmets across categories such as cycling, snow sports, motor sports and industrial protection, with a business model focused on licensing its technology to global helmet brands.

Average Trading Volume: 64,365

Technical Sentiment Signal: Sell

Current Market Cap: SEK7.36B

Learn more about MIPS stock on TipRanks’ Stock Analysis page.