Mildef Group AB Financial Update

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

Analyst Opinions 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 198-243 SEK. This optimistic view comes despite the challenges faced in the recent quarter.

Conversely, Pareto Securities has adjusted its target price for Mildef to 275 SEK from 280 SEK, while maintaining a buy recommendation. Similarly, SEB Equities has lowered its target price to 270 SEK from 280 SEK, also keeping the buy recommendation intact. These adjustments reflect a cautious approach by analysts amidst the company’s recent financial performance.

Financial Performance and Market Conditions

In its latest quarterly financial conference on July 18, 2025, Mildef reported a 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, highlighted in an interview that while the quarter was marked by delivery delays affecting sales and profits, the order intake was record-breaking, and the gross margin strengthened. This mixed performance suggests potential for recovery and growth in the coming months.

Market Influences

Increased defense spending is seen as a positive factor for Mildef, potentially boosting demand for its products. Additionally, the broader market trend of rising blanking rates in related sectors like Vitec and Mildef indicates a challenging environment, yet one that may offer opportunities for companies with strong product offerings.

Conclusion

Mildef Group AB faces a complex market landscape with both challenges and opportunities. While recent financial results have prompted some analysts to adjust their target prices, the company’s strong order intake and improved gross margin provide a basis for cautious optimism. Investors will be closely watching the company’s performance in the second half of the year, as well as broader market trends in the defense sector.