Mildef Group AB: Mixed Financial Outlook Amidst Market Adjustments

Mildef Group AB, a Swedish company specializing in military-grade IT products and electronic systems, has been the subject of recent financial analyses and market adjustments. Listed on the Swedish Stock Exchange, the company has experienced fluctuations in its stock price, with a close price of 190.5 SEK as of July 17, 2025. The stock has seen a 52-week high of 294.4 SEK and a low of 59.6 SEK, reflecting significant volatility.

Analyst Perspectives and Stock Adjustments

Despite a profit warning for the second quarter, DNB Carnegie maintains a positive outlook for Mildef’s second half of the year. The bank anticipates an improved gross margin and a higher EBITA result, leading to an increased valuation range for the stock to 215-263 SEK per share, up from the previous 215-243 SEK. This optimistic view contrasts with other analysts’ assessments.

Pareto Securities and SEB Equities have both adjusted their target prices downward. Pareto Securities reduced its target to 275 SEK from 280 SEK, while SEB Equities lowered its target to 270 SEK from 280 SEK. Both firms reiterated their “buy” recommendations despite these adjustments.

Financial Performance and Market Conditions

Mildef Group reported a quarterly profit of 0.20 SEK per share, a decrease from 0.580 SEK per share in the same quarter of the previous year. However, the company achieved a 27.13% increase in revenue, reaching 383.3 million SEK compared to 301.5 million SEK in the prior year.

The company’s CEO, Daniel Ljunggren, acknowledged challenges such as delivery delays that impacted sales and profits in Q2. Despite these setbacks, the order intake was record-breaking, and the gross margin strengthened. Ljunggren remains optimistic about the company’s future trajectory.

Market Influences

Increased defense spending has been beneficial for Mildef, as noted by financial analysts. This trend is expected to continue supporting the company’s growth. Additionally, the broader market has seen a rise in blanking, affecting companies like Vitec and Mildef.

Conclusion

Mildef Group AB faces a mixed financial landscape with positive long-term prospects tempered by short-term challenges. Analysts remain divided on the company’s immediate outlook, with some maintaining confidence in its recovery and others adjusting their expectations. Investors will be closely monitoring Mildef’s performance in the coming months to assess the impact of these market dynamics.