Enea Delivers Improved Earnings and Margin Expansion as Strategic Shift Toward Growth Segments Gains Momentum

Enea Delivers Improved Earnings and Margin Expansion as Strategic Shift Toward Growth Segments Gains Momentum

(IN BRIEF) Enea has reported a solid first quarter for 2026, marked by steady revenue growth and a substantial improvement in profitability. Net sales increased modestly but showed stronger underlying growth when adjusted for currency, while adjusted EBITDA rose significantly, reflecting improved margins and effective cost control. The company’s strategic focus on its growth portfolio is yielding results, with strong performance in areas such as signalling and messaging security, while its legacy portfolio continues to decline as part of a planned transition. Despite geopolitical challenges, including delayed customer investments in certain regions, Enea is benefiting from increased demand for secure and resilient communication infrastructure, particularly in the national security sector. The company is also strengthening its commercial capabilities and expanding its customer base, supporting long-term growth ambitions. With stable costs, strong recurring revenue, and clear strategic direction, Enea remains confident in achieving its financial targets for 2026 and beyond, positioning itself for sustained growth and value creation in an evolving global market.

(PRESS RELEASE) STOCKHOLM, 23-Apr-2026 — /EuropaWire/ — Enea has reported a strong start to 2026, delivering improved profitability and steady revenue growth in the first quarter, supported by momentum in its growth-focused product portfolio and continued cost discipline. Net sales for the period reached SEK 222.4 million, representing a 4% increase year-on-year, or 12.1% when adjusted for currency effects.

Profitability saw a significant uplift, with adjusted EBITDA rising to SEK 75.0 million from SEK 52.6 million in the same period last year, corresponding to a margin of 33.7%. The company also returned to positive net earnings, posting a profit after tax of SEK 18.6 million compared to a loss in the prior year, while earnings per share improved to SEK 0.98. Cash flow from operating activities amounted to SEK 14.3 million, reflecting some short-term impact from increased working capital.

Teemu Salmi highlighted that the company is seeing accelerating sales in its growth-oriented business areas while maintaining stable cost levels. As part of a strategy update introduced in late 2025, Enea has reorganized its reporting into five product groups, providing clearer visibility into performance. Three of these—Network Performance & Intelligence, Signalling & Messaging Security, and Embedded Network Insights & Security—are driving growth, while Network Access Control and Operating Systems form a more mature, profitability-focused segment.

During the quarter, the growth portfolio expanded by 17% compared to the same period last year, underlining strong demand for Enea’s solutions, particularly in the Signalling & Messaging Security segment. At the same time, the classic portfolio declined by 27%, reflecting a strategic shift toward higher-growth areas.

The company also continues to navigate a complex geopolitical environment. While uncertainty has delayed some customer investment decisions—particularly in the Middle East—Enea sees increasing opportunities linked to rising global investment in national security. The company has strengthened its position in this segment, supported by an expanding pipeline and targeted investments in sales capabilities. A key step in this effort was the appointment of Mathias Johansson, who will lead the execution of the company’s sales acceleration strategy.

Operationally, Enea secured four new customers during the quarter across its growth segments and signed a significant agreement within its Signalling & Messaging Security business. Recurring revenue accounted for 66% of total revenue, reinforcing the stability of its business model.

The company also addressed a financial provision of SEK 25.7 million related to uncertainty surrounding previously forgiven PPP loans in the United States. Despite this, overall profitability remained strong, supported by disciplined cost management and growth in key segments.

Enea’s outlook remains unchanged despite ongoing geopolitical challenges. The company expects single-digit revenue growth for 2026, with an adjusted EBITDA margin above 30%. Over the longer term, through 2028, Enea targets an average annual growth rate exceeding 10% and an EBITDA margin above 35%, supported by its expanding product portfolio, global presence, and continued focus on strategic investments.

Teemu Salmi
President and CEO

Video webcast for analysts, investors and journalists
President and CEO Teemu Salmi and CFO Ulf Stigberg will comment on the report and take questions during a video webcast at 08:30 AM CEST.

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Webcast – Q1 Report 2026
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References
Webpage for Enea financial reports and presentations
https://www.enea.com/investors/financial-reports/

About Enea

Enea is a global specialist in advanced telecom and cybersecurity software, with a vision to make the world’s communications safer and more efficient. Dedicated to innovation and security, our solutions connect, optimize, and protect communications between people, companies, and connected things worldwide. We serve 170+ communication service providers across 100+ countries, with more than 3 billion people relying on Enea technologies every day. Headquartered in Stockholm, Sweden, Enea is publicly listed on NASDAQ Stockholm. To learn more, visit enea.com.

Media Contact:

Investor Relations
ir@enea.com

SOURCE: Enea