HMS Networks AB (publ)

Q3 performance: strong top line and margins beat - Revenue SEK 1,024m (exceeding SEK 1bn for the first time), +6% organic growth (double-digit organic also referenced). - Order intake SEK 1,1bn, +29%; order book build / book-to-bill 1.09 → supports coming-quarter sales visibility. - Profitability: EBITA SEK 280m, margin 27.4% (above long-term target 25%; “record EBITA”). - Cash flow: SEK 333m (very strong), with a note that part was supported by temporary accounts payable increase (~SEK 50m) that likely reverses in Q4.

Key driver: demand broad-based, with strong APAC + early improvement in Europe - Management sees market momentum supported by industrial indicators (PMIs), plus specific strength in data center automation (non-compute buildings/automation) and semiconductor investment. - Geography: APAC strong, China very strong; Japan rebounding after prior inventory digestion; EMEA growing ~20%, including improving DACH/Germany vs earlier weakness; North America remains solid but growth rate moderates to ~10%. - Stated overall exposure to data center + semiconductor end markets is estimated at ~10% of total revenue (possibly slightly more), with additional hard-to-quantify indirect exposure.

Prebuying / lead-time behavior likely to persist (but management is actively trying to manage it) - Customers appear to pre-order ahead of lead times and tariff/price uncertainty: management estimates ~SEK 70m in Q3 tied to this prebuying. - Expectation: could continue for 1–2 more quarters (at least into Q4 and possibly Q1), depending on component market evolution. - Management distinguishes behaviors: - “Normal” orders placed earlier but not necessarily inventory build. - More problematic “delivery tomorrow” behavior to avoid Jan 1 price increases; they aim to prevent customer stocking by how pricing is applied to shipments.