MilDef Group AB (MILDEF) AI Stock Analysis

• Market Cap: kr6.83B
• Dividend Yield: 0.41%
• Average Volume (3M): 422.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 47.87%
• EPS Growth: -439.87%
• Country: SE
• Employees: 327
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.01
• Shares Outstanding: 47,114,895
• 10 Day Avg. Volume: 339,511
• 30 Day Avg. Volume: 422,703
• PEG Ratio: 0.06
• Price to Book (P/B): 4.60
• Price to Sales (P/S): 4.22
• P/FCF Ratio: 40.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: kr135.00 ▲(8.26% Upside)

The score is held back primarily by weak profitability and significant cash flow deterioration despite strong revenue growth. Technicals are modestly supportive in the near term but remain below longer-term trend levels, and valuation is constrained by losses (negative P/E) with a low dividend yield.

Positive Factors

Strong revenue growth and healthy gross margin

Sustained top-line expansion and a near-50% gross margin indicate product demand and pricing power in ruggedized defense hardware. These attributes support long-term margin preservation and scale benefits if MilDef converts growth into improved operating leverage and cost control.

Recurring, contract-driven revenue mix

A business model centered on long-term government contracts, maintenance and support creates recurring revenue and backlog visibility. This structural revenue stability reduces cyclical exposure and supports predictable cashflows and investment planning over multi-year defense procurement cycles.

Solid equity base and manageable leverage

An equity ratio above 50% and moderate debt-to-equity suggest financial resilience and capacity to fund operations or absorb shocks. Manageable leverage lowers refinancing and interest risk, enabling MilDef to bid for contracts and sustain R&D investment without excessive balance-sheet strain.

Negative Factors

Negative net profitability and return on equity

Persistent net losses and negative ROE undermine retained earnings and investor returns, constraining reinvestment capacity. Without structural improvement in margins or cost base, ongoing losses could necessitate capital raises and impair long-term value creation despite strong gross margins.

Severe free cash flow deterioration

A steep FCF decline and very low OCF-to-net-income ratio signal weak cash conversion and potential liquidity stress. This reduces flexibility to fund contracts, working capital, and R&D, increasing likelihood of external financing that could raise costs or restrict strategic options over the medium term.

Earnings gap between operating and net results

Positive EBIT alongside a large net loss implies significant non-operating costs, financing charges or one-offs that erode operating profitability. This structural disconnect must be addressed—via cost, financing, or tax items—to convert operating strength into sustained net profitability.

MilDef Group AB Business Overview & Revenue Model

Company Description

MilDef Group AB (publ), through its subsidiaries, develops, manufactures, and sells rugged IT solutions and special electronics primarily to customers in the security and defense sectors. The company's IT solutions include laptops, tablets, handhelds, concepts, tracking solutions, servers, switches, routers, intelligent displays, and accessories. It has operations in Sweden, Norway, Finland, the United Kingdom, and the United States. The company was founded in 1997 and is headquartered in Helsingborg, Sweden.

How the Company Makes Money

MilDef generates revenue through the sale of its ruggedized IT products and systems to military and defense organizations. The company's primary revenue streams include direct sales of hardware, software licenses, and ongoing maintenance and support contracts. Additionally, MILDEF often engages in long-term contracts and partnerships with various government defense agencies and private defense contractors, which provide a stable income source. The company may also benefit from research and development funding through collaborations with defense ministries and participation in defense procurement programs.

MilDef Group AB Financial Statement Overview

Summary

MilDef Group AB shows strong revenue growth but faces significant profitability and cash flow challenges. The balance sheet indicates moderate stability with a solid equity base, but increasing leverage and negative returns on equity are concerning.

Income Statement

MilDef Group AB shows a mixed performance in its income statement. The company has experienced a strong revenue growth rate of 20.85% in the TTM, indicating robust top-line expansion. However, profitability metrics are concerning, with a negative net profit margin of -16.06% and an EBIT margin of 7.01%. The gross profit margin remains healthy at 47.64%, but the negative net income suggests challenges in managing costs or operational inefficiencies.

Balance Sheet

The balance sheet of MilDef Group AB reflects moderate financial stability. The debt-to-equity ratio of 0.52 indicates a manageable level of leverage, although it has increased from previous years. The return on equity is negative at -18.80%, highlighting profitability challenges. The equity ratio stands at 51.79%, suggesting a solid equity base relative to total assets, which is a positive sign for financial resilience.

Cash Flow

Cash flow analysis reveals significant challenges for MilDef Group AB. The company has a negative free cash flow growth rate of -208.62% in the TTM, indicating cash flow difficulties. The operating cash flow to net income ratio is low at 0.12, and the free cash flow to net income ratio is 0.74, suggesting that cash generation is not keeping pace with net income losses. These metrics highlight potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.68B	1.20B	1.15B	738.80M	469.60M	398.50M
Gross Profit	780.50M	589.10M	556.30M	352.30M	210.10M	182.10M
EBITDA	472.30M	-36.10M	176.70M	57.80M	23.20M	67.00M
Net Income	-195.00M	-220.30M	69.00M	14.20M	-700.00K	42.50M
Balance Sheet
Total Assets	2.76B	1.68B	1.53B	1.39B	808.20M	367.90M
Cash, Cash Equivalents and Short-Term Investments	118.10M	530.40M	81.50M	59.90M	169.20M	46.80M
Total Debt	715.60M	220.40M	367.40M	314.70M	102.10M	66.70M
Total Liabilities	1.33B	581.90M	681.10M	606.00M	240.00M	235.30M
Stockholders Equity	1.43B	1.10B	844.60M	787.90M	568.20M	132.60M
Cash Flow
Free Cash Flow	-47.90M	123.90M	8.70M	-94.80M	-71.90M	52.80M
Operating Cash Flow	-31.10M	144.40M	54.50M	-76.80M	-55.50M	61.70M
Investing Cash Flow	-720.10M	-33.30M	-68.90M	-321.30M	-187.20M	-8.60M
Financing Cash Flow	829.00M	335.10M	38.50M	285.70M	362.90M	-14.40M

MilDef Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 124.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MILDEF, the sentiment is Neutral. The current price of 124.7 is below the 20-day moving average (MA) of 127.92, below the 50-day MA of 132.69, and below the 200-day MA of 181.07, indicating a neutral trend. The MACD of 1.21 indicates Negative momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 81.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:MILDEF.

MilDef Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAAB.B	71 Outperform	kr372.03B	71.83	13.56%	0.39%	22.49%	30.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INSTAL	59 Neutral	kr7.24B	28.06	8.12%	2.67%	-3.68%	-48.79%
FAG	50 Neutral	kr6.94B	26.98	3.57%	3.46%	-6.23%	-37.00%
GOMX	49 Neutral	kr3.43B	-35.32	―	―	9.60%	40.86%
MILDEF	48 Neutral	kr6.83B	-32.06	-16.38%	0.41%	47.87%	-439.87%
SALT.B	39 Underperform	kr935.49M	-12.96	-40.77%	―	11.85%	6.39%

MilDef Group AB Corporate Events

MilDef Group AB Announces 2026 AGM Nomination Committee

MilDef Group AB has announced the formation of its Nomination Committee for the 2026 Annual General Meeting, comprising representatives from Swedbank Robur Fonder, Andra AP-Fonden, and Carnegie Fonder, with the Chair of the Board, Björn Karlsson, also participating. This committee will play a crucial role in preparing for the AGM, scheduled for May 21, 2026, in Helsingborg, by considering shareholder proposals submitted by January 31, 2026, thereby influencing the company’s governance and strategic direction.

The most recent analyst rating on (SE:MILDEF) stock is a Hold with a SEK173.00 price target. To see the full list of analyst forecasts on MilDef Group AB stock, see the SE:MILDEF Stock Forecast page.

MilDef to Release Q3 2025 Financial Report

MilDef has announced the release of its third quarter report for 2025, scheduled for October 23. The report will be presented by CEO Daniel Ljunggren during a conference call for investors, analysts, and media, highlighting the company’s ongoing commitment to transparency and stakeholder engagement.

The most recent analyst rating on (SE:MILDEF) stock is a Hold with a SEK213.00 price target. To see the full list of analyst forecasts on MilDef Group AB stock, see the SE:MILDEF Stock Forecast page.