HMS Networks announces strategic targets for 2030

Core Insights - HMS Networks AB has set new financial and sustainability targets, which will be presented alongside the 2030 strategy and a business update at the Capital Markets Day [1][11] - The strategic period from 2020 to 2025 is nearing its end, with HMS on track to meet its 2025 targets established in 2020 [1] Financial and Business Strategy - From 2026 to 2030, HMS aims to accelerate customer acquisition and expand within its existing customer base, prioritizing mergers and acquisitions to strengthen each division [2] - Significant investments will be made in an updated product portfolio to enhance service offerings and increase annual recurring revenue (ARR) [2] - HMS has set a target for net sales of SEK 7.5 billion by 2030, with an EBITA margin target of 25% [7] - The company plans to grow ARR to 10% of net sales, contributing to a gross margin ambition of over 65% [7] Operational Performance - The business climate in Q3 has shown slight improvement in demand from the USA and Germany, while other EU markets and Japan have been weaker [4] - A temporary delivery stop in June due to a new ERP system has resulted in postponed deliveries of SEK 15 million, which are expected to be fulfilled in Q3 [5] - US tariffs negatively impacted gross margins in Q2, but price increases have offset this effect, leading to a slight improvement in gross margin [5] Sustainability and Employee Engagement - HMS is applying for the Science-Based Targets Initiative, aiming for a net positive carbon footprint by 2050 and an EcoVadis Gold rating [7] - The company has set an Employee Engagement Index target of 80 and aims to increase the share of female managers to at least 30% by 2030 [7] - The target for Customer Net Promoter Score is set at a minimum of 50 over the period [7] Financial Health - HMS is reducing its debt level month by month, with a goal to reach a net debt to EBITDA ratio of around 2.5x by year-end [6]