HMS Networks AB (publ) HMS
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Full analysis: 6 Apr 2026
Latest news check: 15 Jul 2026
General analysis — not personal advice.
HOLD
8/10
Confidence
Maintain the current position; consider adding only if Q3 shows the component situation is managed without clear margin pressure and order intake remains resilient.
Hold: Q2 confirms strong underlying demand (order intake +15% organic) and profitability above target (26.8% EBITA margin) with strong cash generation. At the same time, near-term uncertainty rises due to potential gross-margin/delivery headwinds from memory components and the stock remains highly valued, arguing for waiting for Q3 confirmation before adding.
Market sentiment
8/10
→
Trend: Stable
Sentiment remains strong after a clear earnings and margin beat, but is tempered by signs that much may be priced in and by newly highlighted H2 risks around memory components and input-cost inflation.
Risk assessment
6/10
Dilution:
Low
Low near-term dilution risk given strong cash flow, but the AGM’s share issuance mandate (up to 10%) creates a latent dilution option if used for future M&A/financing.
Jurisdiction:
Low
Mainly Sweden/US/Western Europe exposure
Execution:
Medium
Multiple acquisitions require successful integration
Recent changes
- Q2 delivered strong order intake, growth and a 26.8% EBITA margin with strong operating cash flow. The company also flagged memory-component cost/lead-time issues that could pressure gross margin and deliveries in H2…
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Show all changes (3) — follow the company freeAbout the company
HMS Networks develops and sells hardware and software for industrial communication and Industrial ICT/IIoT. The company provides network interfaces, gateways, diagnostics and remote access through brands such as Anybus, Ewon, Intesis, Ixxat and Red Lion. Growth is driven by both organic expansion and acquisitions, with high profitability but some integration and leverage risk.
Sector:
Industrial communication and IIoT
Type:
Tech
Next report
21 Oct 2026
Q3
Catalysts
21 Oct 2026
Q3 2026 report: first real test of H2 component risk
High
2030
2030 targets (growth and margin)
Low
Horizon:
Bull case
The Q1 2026 report could confirm continued growth and strong margins after the 2025 record year
- Positive momentum from the dividend and ongoing integration updates
- Continued demand tailwinds from industrial automation/IIoT can support valuation
Bear case
High valuation increases downside if Q1 misses on margin/orders
- FX and macro uncertainty may weaken demand and reported results
- Near-term risk of uneven order intake after a very strong 2025
Signal rationale (informational)
Hold: Q2 confirms strong underlying demand (order intake +15% organic) and profitability above target (26.8% EBITA margin) with strong cash generation. At the same time, near-term uncertainty rises due to potential gross-margin/delivery headwinds from memory components and the stock remains highly valued, arguing for waiting for Q3 confirmation before adding.
Recent news
- Q2 report (14 Jul 2026): order intake SEK 979m (+20%, +15% organic) and net sales SEK 991m (+18%, +12% organic). EBITA SEK 266m (26.8% margin) and EBIT SEK 238m (24.0% margin) with strong operating cash flow of SEK 334m. However, the company warned of higher purchase prices and longer lead times for memory components in H2 2026, which could pressure gross margin and delivery capability; the share reaction was muted on the day. Next report is Q3 on 21 Oct 2026.
Price & valuation
Last close
SEK 484
1 week
-3.1 %
3 months
-15.9 %
12 months
+16.4 %
From 52w high
-17.9 %
From 52w low
+25.5 %
Exchange
Stockholm
Type
Technology
Sector
Industrial communication and IIoT
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Firelda provides general information and analysis, not personal investment advice. Content does not consider your financial situation or goals. Investments can rise and fall in value. Always do your own research.