Ovzon AB (OVZON) AI Stock Analysis

• Market Cap: kr6.67B
• Dividend Yield: N/A
• Average Volume (3M): 426.86K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.39
• Revenue Growth: 77.67%
• EPS Growth: 68.35%
• Country: SE
• Employees: 38
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.80
• Shares Outstanding: 111,530,520
• 10 Day Avg. Volume: 494,827
• 30 Day Avg. Volume: 426,856
• PEG Ratio: -0.19
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 6.47
• P/FCF Ratio: 15.91
• 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): 2.4
• Revenue Forecast (FY): kr1.05B

• Rating: 67 Neutral
• Price Target: kr67.00 ▲(76.32% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is primarily supported by the strong technical uptrend and a materially improved 2025 financial profile (profitability and free cash flow). Offsetting this, valuation is demanding with a high P/E, and the financial turnaround still needs to prove consistency after several volatile years.

Positive Factors

Mission-critical market niche

Serving government, defense and emergency-response clients positions Ovzon in a structurally durable niche with high service reliability and security requirements. These end markets favor long-term contracts, higher switching costs and certification barriers, supporting stable demand and pricing power over multiple years.

Recurring and integrated revenue streams

A business model combining recurring satellite connectivity, managed services and equipment rental creates predictable revenue and higher lifetime value per customer. Integrated end-to-end offerings tend to command stronger margins and longer contract durations, improving revenue visibility and resilience versus one-off hardware sales.

Meaningful cash-flow improvement in 2025

Conversion of 2025 earnings into substantial operating and free cash flow indicates the recent profit recovery is translating into liquidity. Sustained positive FCF improves self-funding capacity for capacity leases and product development, reducing reliance on external financing if management preserves cash generation.

Negative Factors

Volatile historical earnings

The firm’s earnings history is highly cyclical, with several recent years of sizeable losses before the 2025 rebound. Such volatility undermines forecast reliability, increases the risk that a single-year recovery proves transient, and complicates long-term planning for contracts, capacity commitments and investor confidence.

Inconsistent free cash flow track record

While 2025 delivered strong FCF, prior multi-year negative free cash flow highlights execution and timing risk. Inconsistent cash generation can force reliance on financing around capacity buildups or contract timing, increasing exposure to funding availability and raising the cost of sustaining growth.

Variable leverage and prior debt increases

Although equity provides a cushion today, past swings in debt levels indicate balance-sheet flexibility has been variable. Rising or episodic leverage during weaker years can amplify financial stress, increase interest burden and constrain investment or bidding capacity if earnings prove less stable than current results suggest.

Ovzon AB Business Overview & Revenue Model

Company Description

Ovzon AB (publ) provides satellite based mobile broadband services in Sweden. It serves government, media, defense, maritime, emergency services, NGOs, and aviation segments. The company was founded in 2006 and is based in Solna, Sweden.

How the Company Makes Money

Ovzon makes money primarily by selling satellite connectivity and related services to customers that need reliable, high-performance communications in locations where terrestrial networks are limited or unavailable. Key revenue streams include: (1) Satellite services/connectivity: recurring revenue from providing bandwidth/capacity and managed communication services delivered via satellite to end users (often under service contracts). (2) Sale and rental of customer equipment: revenue from supplying satellite terminals and associated hardware used to access Ovzon’s services; depending on the contract structure, this can be one-time sales and/or recurring rental/lease income. (3) Integrated/managed solutions: revenue from packaged offerings that combine capacity, network services, and equipment into an end-to-end solution with service-level commitments, which can command higher margins and longer contract durations, particularly for government and defense customers. Significant factors influencing earnings include contract awards and renewals (especially in public-sector/defense procurement), utilization/pricing of satellite capacity, and the mix between recurring service revenue versus equipment sales. Specific named partnerships or customer contracts are null.

Ovzon AB Financial Statement Overview

Summary

2025 shows a sharp operational turnaround with higher revenue, positive net income, and strong operating/free cash flow. However, results have been volatile with sizeable losses and negative free cash flow in several prior years, so durability of the improvement remains a key risk.

Income Statement

The income statement shows a sharp turnaround in 2025 (annual): revenue rose to 735M (up ~30%) and profitability flipped positive with net income of 137M after losses in 2021–2024. However, the track record is still volatile—2024 posted a sizable net loss (-162M) and negative operating profit—so the quality of earnings and durability of the 2025 step-change remains the key watch item.

Balance Sheet

The balance sheet looks reasonably supportive: equity is substantial (1.79B in 2025) versus total debt (436M), implying moderate leverage and a stronger cushion than many smaller telecom peers. That said, debt has moved around materially over time (e.g., higher in 2024), and the company has a history of losses, which can pressure equity if profitability doesn’t hold.

Cash Flow

Cash generation improved meaningfully in 2025 with operating cash flow of 337M and free cash flow of 299M (strong growth versus the prior year), indicating the recent earnings rebound is translating into cash. The main concern is consistency: free cash flow was negative in several prior years (including 2024 and 2023), highlighting execution and timing risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	735.00M	334.00M	290.00M	356.99M	191.38M
Gross Profit	131.00M	162.00M	85.00M	124.69M	24.60M
EBITDA	282.00M	7.00M	-37.00M	-12.62M	-74.07M
Net Income	137.00M	-162.00M	-60.00M	-36.19M	-83.85M
Balance Sheet
Total Assets	2.82B	2.77B	2.54B	1.92B	1.85B
Cash, Cash Equivalents and Short-Term Investments	171.00M	126.00M	247.00M	275.61M	406.08M
Total Debt	436.00M	775.00M	657.00M	478.05M	323.67M
Total Liabilities	1.03B	1.18B	765.00M	528.85M	403.05M
Stockholders Equity	1.79B	1.59B	1.78B	1.39B	1.45B
Cash Flow
Free Cash Flow	299.00M	-108.00M	-689.00M	-275.26M	-349.74M
Operating Cash Flow	337.00M	51.00M	-14.00M	-112.16M	-75.93M
Investing Cash Flow	-49.00M	-158.00M	-668.00M	-150.65M	-273.81M
Financing Cash Flow	-243.00M	-17.00M	651.00M	101.51M	558.62M

Ovzon AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:OVZON, the sentiment is Positive. The current price of 38 is below the 20-day moving average (MA) of 59.35, below the 50-day MA of 55.53, and below the 200-day MA of 42.44, indicating a bullish trend. The MACD of 2.35 indicates Positive momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 55.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:OVZON.

Ovzon AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVSO	75 Outperform	kr12.12B	55.69	21.88%	0.87%	5.69%	4.82%
OVZON	67 Neutral	kr6.67B	34.72	-1.33%	―	77.67%	68.35%
TEL2.B	66 Neutral	kr130.13B	23.36	21.35%	4.15%	0.51%	14.15%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SINCH	54 Neutral	kr16.97B	25.38	0.88%	―	-1.62%	94.01%
TELIA	54 Neutral	kr178.26B	-29.60	10.93%	5.14%	-5.76%	-10.05%

Ovzon AB Corporate Events

Ovzon moves to strengthen board with cybersecurity and defense expertise

Ovzon’s Nomination Committee has proposed cybersecurity and defense experts Christopher Ahlberg and Harri Larsson as new board members ahead of the company’s 2026 Annual General Meeting. Ahlberg brings deep experience from founding analytics and threat intelligence companies, while Larsson adds extensive defense and cyber defense leadership, including a long career in the Swedish Armed Forces.

The committee also proposes re-election of current directors Regina Donato Dahlström, Cecilia Driving, Lars Højgård Hansen and Nicklas Paulson, with Dahlström to remain as chair, while current members Dan Jangblad and Peder Ramel have declined re-election. The board will remain at six members, a move that signals continuity in governance while strengthening Ovzon’s strategic capabilities in cybersecurity and defense-focused communications ahead of its AGM on 23 April 2026.

The most recent analyst rating on (SE:OVZON) stock is a Buy with a SEK72.00 price target. To see the full list of analyst forecasts on Ovzon AB stock, see the SE:OVZON Stock Forecast page.

Ovzon Wins USD 1.3 Million SATCOM Order From Long-Standing U.S. Defense Client

Ovzon has secured a three-month, USD 1.3 million order via SES Space & Defense to deliver SATCOM services and technical support to the U.S. Department of War, with service starting immediately. The contract underscores Ovzon’s role in supplying mission-critical connectivity to a long-standing U.S. defense customer that operates a wide base of Ovzon’s mobile satellite terminals, reinforcing a strategic relationship built since 2014.

Management highlighted that the new order validates the performance, mobility and resiliency of Ovzon’s technology and solutions, while strengthening its long-term partnership with a key government client. The deal adds to the company’s recurring government business and supports its positioning as a specialized provider of high-performance mobile SATCOM capabilities in demanding operational environments.

The most recent analyst rating on (SE:OVZON) stock is a Buy with a SEK68.00 price target. To see the full list of analyst forecasts on Ovzon AB stock, see the SE:OVZON Stock Forecast page.

Ovzon posts strong 2025 turnaround as NATO and FMV deals boost satellite order book

Ovzon AB reported a sharp improvement in profitability for 2025, with full‑year revenue more than doubling to 735 MSEK and EBITDA turning positive to 291 MSEK after breaking even the previous year. Operating profit swung to 140 MSEK from a loss, profit after tax rose to 137 MSEK, earnings per share reached 1.23 SEK, and the equity ratio strengthened, although the board proposed no dividend to support continued expansion.

Fourth‑quarter momentum was strong, with revenue climbing to 277 MSEK and order intake reaching 297 MSEK, driven by SATCOM services and mobile terminal sales. Key wins included a 58 MSEK supplementary order from Sweden’s FMV for additional mobile satellite terminals and a 240 MSEK agreement with a European NATO customer, lifting the order book to 1,025 MSEK and underlining Ovzon’s growing role in mission‑critical defense and security communications.

The most recent analyst rating on (SE:OVZON) stock is a Hold with a SEK60.00 price target. To see the full list of analyst forecasts on Ovzon AB stock, see the SE:OVZON Stock Forecast page.

Ovzon schedules webcast for 2025 year-end results

Ovzon will publish its year-end report for 2025 on 19 February 2026 at 08:00 CET, followed by a webcast telephone conference at 10:00 CET led by CEO Per Norén and CFO André Löfgren. The English-language presentation, with questions also possible in Swedish via live chat, and related materials will be made available on the company’s website, underscoring Ovzon’s efforts to maintain transparency and engagement with investors around its first full year of commercial service on the Ovzon 3 satellite.

The most recent analyst rating on (SE:OVZON) stock is a Hold with a SEK60.00 price target. To see the full list of analyst forecasts on Ovzon AB stock, see the SE:OVZON Stock Forecast page.

Ovzon adjusts share capital to fund long-term incentive programs

Ovzon AB has increased its total number of shares and votes through the issuance of 764,178 C-shares during January 2026, raising its share capital by SEK 76,418. These C-shares were immediately repurchased by the company and are intended to serve the LTIP 2024 and LTIP 2025 long-term incentive programs, bringing the total number of outstanding shares to 112,294,694 and total votes to 111,606,934 at the end of January, a move that fine-tunes Ovzon’s capital structure to support employee and management incentives without materially altering control for existing shareholders.

The most recent analyst rating on (SE:OVZON) stock is a Hold with a SEK57.00 price target. To see the full list of analyst forecasts on Ovzon AB stock, see the SE:OVZON Stock Forecast page.

Ovzon strengthens leadership as satellite veteran Martin Eriksson becomes CTO

Ovzon AB has appointed long-time executive Martin Eriksson as its new Chief Technology Officer and member of Group Management, effective immediately, emphasizing continuity in technical leadership as the company scales its satellite communications offering. Eriksson, who has been with Ovzon since 2008 and led the design, production and launch of its first satellite as Space Systems Manager, will oversee further development of the company’s space systems and capabilities, while a streamlined five-person Group Management team and the reassignment of former executives to key technical and business development roles aim to strengthen integration, focus and support Ovzon’s profitable growth strategy.

The most recent analyst rating on (SE:OVZON) stock is a Buy with a SEK61.00 price target. To see the full list of analyst forecasts on Ovzon AB stock, see the SE:OVZON Stock Forecast page.

Ovzon Issues and Repurchases C-Shares to Fund Long-Term Incentive Programs

Ovzon AB’s board has resolved, under existing AGM authorization, to conduct a directed issue of 764,178 C-shares linked to its long-term incentive programs LTIP 2024 and LTIP 2025, all of which will be subscribed by Danske Bank at par value, immediately repurchased by Ovzon, and later converted into common shares for delivery to program participants. The transaction is designed to secure shares for employee and management incentives and to cover related social security costs, using non-dividend-bearing, low-vote C-shares, thereby supporting the company’s long-term retention and alignment strategy without materially altering its dividend obligations while modestly affecting its capital and voting structure.

The most recent analyst rating on (SE:OVZON) stock is a Hold with a SEK40.00 price target. To see the full list of analyst forecasts on Ovzon AB stock, see the SE:OVZON Stock Forecast page.