NOTE

Financial performance in July-September
• Sales amounted to SEK 830 (809) million. Organic growth was 6%, currency adjusted.
• Operating profit was SEK 74 (64) million. Adjusted operating profit was SEK 77 (67) million, adjusted for revaluations of operating assets and liabilities in foreign currencies.
• The operating margin amounted to 9.0% (8.0%). The adjusted operating margin was 9.3% (8.3%).
• Profit after financial items was SEK 67 (55) million.
• Profit after tax amounted to SEK 54 (43) million, corresponding to SEK 1.92 (1.52) per share.
• Adjusted for items affecting comparability, such as investments in the property in Torsby, Sweden and acquisition-related payments made in the comparative period, operating cash flow amounted to SEK 121 (157) million. Total cash flow after investments amounted to SEK 105 (120) million, or SEK 3.69 (4.21) per share.

Financial performance in January-September
• Sales amounted to SEK 2,813 (2,876) million. Organic growth was 0%, currency adjusted.
• Operating profit was SEK 268 (254) million. Adjusted operating profit was SEK 271 (256) million, adjusted for revaluations of operating assets and liabilities in foreign currencies, and for a SEK 18 million provision for restructuring of the UK operation in the first quarter.
• The operating margin amounted to 9.5% (8.8%). The adjusted operating margin was 9.6% (8.9%).
• Profit after financial items was SEK 243 (219) million.
• Profit after tax amounted to SEK 196 (175) million, corresponding to SEK 6.84 (6.06) per share.
• Adjusted for items affecting comparability, such as investments in the property in Torsby, Sweden and acquisition-related payments made in the comparative period, operating cash flow amounted to SEK 379 (398) million. Total cash flow after investments amounted to SEK 317 (341) million, or SEK 11.13 (11.97) per share.

CEO’s comments – I’m delighted that we’re now able to report the growth we’ve been anticipating for some time. This is being reflected in our profitability, which is continuing to increase from an already-high level.

” I’m pleased to be able to report that we achieved growth in the third quarter. We’ve made this turnaround in a period of geopolitical tensions, economic uncertainty and altered trading conditions impacting our sector and many others, which has delayed our recovery. Growth is in the lower range of our expectations, but we know that when the business cycle and demand growth accelerate, we’re well positioned.

Third-quarter sales of SEK 830 million translate to organic growth of 6%. We have an organisation with the proven capability to combine quality, flexibility and profitability. Now that we’re achieving growth, we’re seeing that our profitability is rising from an already-high level. The underlying operating margin of 9.3% for the quarter demonstrates that our continuous improvements is paying off.

Sustained high profitability, combined with efficient progress in the utilisation of working capital generated continued high cash flows, with SEK 121 million of operating cash flow in the quarter, corresponding to SEK 379 million for the year. In recent years, we’ve made major investments in capacity and capabilities to stay one step ahead and address the increasingly stringent quality, flexibility and efficiency standards our customers apply. We made our single biggest investment in NOTE when we signed an agreement to acquire UK EMS provider Kasdon at the end of the quarter. This deal, scheduled to close in early-Q4, strengthens our positioning on the UK market and brings strategic depth in a high-demand segment. Kasdon has ambitious growth plans in the coming years, combined with high profitability.

The market remains hesitant, which is causing caution among customers that is delaying the recovery. More uncertain market conditions mean many customers are deferring order placement. Currency adjusted, total order backlog is unchanged on the previous year. Overall, we anticipate sales in the SEK 1,000-1,050 million interval in the fourth quarter, which includes a negative currency effect of SEK 30-40 million, with an operating margin in the 10.0–11.0% interval.

Given the positive drivers for the sector, our strong positioning as an EMS partner and efficient organisation, we’re ready to meet the demand that lies ahead.”, says Johannes Lind-Widestam, CEO and President.

NOTEs Interim Report for Q3 2025 is now available in PDF format on the corporate web site, www.note-ems.com, and attached to this message. Today at 10.00 CET, NOTE organizes a presentaton for analysts, media and investors, where CEO and President Johannes Lind-Widestam presents the report. The Year End Report for January-December will be published on the 26^th of January.