MilDef Group came into this Q3 2026 report with a stock that had cooled over the past month, down about 7% over 30 days, yet still slightly higher over 90 days. The reputation is all about long runway defense demand and growth potential. The fresh numbers provide some context. Q3 net sales reached SEK 829.2m and basic earnings per share landed at 2.34 SEK, both paired with what management called record margins. For a defense technology supplier, that mix of scale and profitability may matter more to some investors than today’s muted price reaction.
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Q3 2026 Earnings Summary
- Revenue, Q3 2026 vs. Q3 2025: SEK 829.2m vs. SEK 539.7m (up about 54%)
- Net Income, Q3 2026 vs. Q3 2025: SEK 110.1m vs. SEK 45.4m (up about 143%)
- Basic EPS, Q3 2026 vs. Q3 2025: SEK 2.34 vs. SEK 0.96 (up about 143%)
- Adjusted EBITDA Margin, Q3 2026 vs. Q3 2025: 21.8% vs. 15.7% (reflecting a higher margin on stronger operating leverage)
Tired of squinting at dense tables and raw figures in earnings PDFs? Explore a full visual breakdown of MilDef Group with clear charts that connect recent profitability with the rest of the financial picture in the company report for MilDef Group.
MilDef bullish thesis on turnkey gains real traction
Supporters argue MilDef’s move up the value chain, towards bundled offerings, is the real earnings engine to watch.
"Customers are increasingly asking for turnkey solutions that combine hardware, software and integration services, positioning MilDef higher in the value chain."
Q3 order intake linked to NATO and Bundeswehr frameworks backs that claim, since both hinge on integrated hardware and IT backbones rather than box sales. Record adjusted EBITDA margin of 21.8% alongside a roughly 45% gross margin suggests integrated projects are now being delivered at scale, not just sold. The milestone hit is proof of execution, not just order wins.
Bear case on margins and cash conversion not resolved
Sceptics focus less on demand and more on what falls through to earnings and cash.
"Roda operates with a gross margin around 30%, meaning a greater mix of Roda volumes could keep the consolidated gross margin lower than the 50% plus level MilDef reports on its legacy business."
Group gross margin around 45% in Q3 sits between legacy levels and Roda’s profile, so the feared dilution is visible. At the same time, negative cash flow of SEK 112m and net working capital just below 40% of sales echo worries about weaker cash conversion. Strong EBITDA is there, yet the working capital drag means that bearish milestone has not been cleared.
Not everyone reads the same price the same way. → See the lower figure this Narrative lands on, and how it gets there.
Hunt For Quiet Earnings Mispricing
MilDef Group recently reported strong earnings while its share price response stayed subdued. The real opportunity is researching other stocks that could be undervalued before the market closes any gaps.
- Company 1 - 29% below our estimate - expands higher yielding retail lending and integrates payments, deposits and wealth into a unified digital ecosystem.
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Three companies from the same screener. Open the full list of 191 companies trading below our fair value estimates →
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