NOTE AB Boosts Profitability and Defence Footprint as It Halts Dividend to Preserve Cash

NOTE AB ( (SE:NOTE) ) has provided an announcement.

NOTE AB reported essentially flat full-year 2025 sales at SEK 3.8 billion with currency-adjusted organic growth of 0%, but improved profitability as the adjusted operating margin rose to 10.1% from 9.3% and profit after tax increased to SEK 281 million, or SEK 9.89 per share. Despite solid earnings, cash flow after investments fell sharply to SEK 32 million from SEK 465 million, partly due to acquisition activity and property investments, leading the board to propose no dividend for 2025 in order to preserve financial flexibility amid structural changes in the EMS sector. Operationally, the group strengthened its market position through an expanded production partnership with Swedish telecom firm Waystream, a large new order in the Security & Defence segment starting in late 2025, and the acquisition of UK-based Kasdon Group, which deepens NOTE’s presence in the defence-focused UK EMS market and is financed via existing cash, credit facilities and a small share issue causing limited shareholder dilution.

The most recent analyst rating on (SE:NOTE) stock is a Hold with a SEK185.00 price target. To see the full list of analyst forecasts on NOTE AB stock, see the SE:NOTE Stock Forecast page.

More about NOTE AB

NOTE AB is an electronics manufacturing services (EMS) provider that produces advanced electronics for customers across segments including security and defence, telecom and industrial applications. The company operates plants in several markets, including Sweden and the UK, and has been expanding through acquisitions and strategic partnerships to strengthen its position in high-demand sectors such as defence and to support customers reshoring production to Europe.

YTD Price Performance: -8.25%

Average Trading Volume: 33,336

Technical Sentiment Signal: Buy

Current Market Cap: SEK4.76B

For a thorough assessment of NOTE stock, go to TipRanks’ Stock Analysis page.