Mildef Group AB Faces Delivery Delays, Earnings Warnings for Q2 2025

In a startling revelation that has sent ripples through the Swedish Stock Exchange, Mildef Group AB, a prominent player in the industrial sector specializing in military-grade IT products and electronic systems, has issued a profit warning for the second quarter of 2025. The company, headquartered in Helsingborg, has announced that both sales and earnings for Q2 will fall short of analysts’ expectations due to significant delivery delays.

Delivery Delays and Financial Impact

The crux of the issue lies in the postponement of several large deliveries to the third quarter. This shift has led to a preliminary analysis indicating that sales will reach approximately 380 million SEK, with EBITA projected to be between 20-25 million SEK. These figures starkly contrast with the expectations set by market analysts, underscoring the severity of the situation.

Market Reaction and Stock Performance

The news has undoubtedly shaken investor confidence, as reflected in the company’s stock performance. As of July 9, 2025, Mildef’s close price stood at 188.5 SEK, a significant drop from its 52-week high of 294.4 SEK on May 27, 2025. The market capitalization currently stands at 8.41 billion SEK, with a troubling price-to-earnings ratio of -35.8, highlighting the financial strain the company is under.

Order Book and Future Prospects

Despite the setbacks, Mildef has maintained a strong order intake, with recent contracts, such as the one with Försvarets materielverk (FMV) for the delivery of OneCIS software and related hardware, valued at 139 million SEK, providing a glimmer of hope. This contract, along with an additional option worth 64 million SEK, aligns with previous forecasts and suggests potential recovery in the coming quarters.

Industry Context and Geopolitical Factors

The broader context of geopolitical tensions continues to bolster the defense sector, as evidenced by the 7.39% increase in June for the Finserve Global Security Fund, which has seen a 44.81% return since the year’s start. This environment may offer Mildef some respite, as demand for military-grade technology remains robust.

Conclusion

Mildef Group AB’s announcement serves as a critical reminder of the vulnerabilities inherent in the supply chain and the importance of timely delivery in maintaining financial stability. As the company prepares to present its second-quarter report on July 18, stakeholders will be keenly watching for strategies to mitigate these challenges and restore confidence in the company’s future performance.