4D·

"HANZA delivers an explosive Q1 - sales doubled, profit tripled, scaling is going perfectly."

Hello my dears,

Today we are introducing you to a company by the numbers.

Many people say that buying before the numbers is a bit like playing the lottery.

That's why today we're looking at a company that has performed well.

Do you think now is a good time to buy after the figures?

05,05,2026

🧾 Brief summary Q1 report HANZA AB

Profit: SEK 128 million (previous year: SEK 40 million) → +220 % increase
EPS: SEK 2.08 per share (previous year: SEK 0.90) → adjusted: SEK 2.15
Sales: SEK 2.646 billion (previous year: SEK 1.326 billion) → +99,5 % Growth

💬 Juan's conclusion

"HANZA delivers an explosive Q1 - sales doubled, profit tripled, scaling is going perfectly."

$HANZA (+0.67%)

Hanza ABformerly Hanza Holding AB, is a manufacturing company based in Sweden. The company offers its customers a combination of consulting and customized manufacturing solutions in the fields of mechanics and electronics. The company's activities are divided into three business segments: The Main Markets segment, which comprises manufacturing clusters within or close to Hanza's primary geographic customer markets, which include Sweden, Finland, Norway and Germany; The Other Markets segment, which comprises manufacturing clusters outside of Hanza's primary geographic customer markets. It comprises HANZA's production clusters in the Baltic States, Central Europe and China; and the Business Development segment, which mainly comprises Group-wide functions within the parent company as well as Group-wide projects and functions that are not allocated to the other two segments. Hanza AB was founded in 2008 and has branches in Sweden, Finland, Estonia, Poland, the Czech Republic, Germany and China.

Number of employees: 3,431

The factories are strategically located close to each other in so-called production clusters in order to exploit synergies between the different technologies and enable shorter delivery times, less transportation, lower emissions and lower overall costs.

With a total production area of 170,000 square meters - spread across 18 factories in seven countries in Europe and Asia - Hanza offers complete development and manufacturing in the fields of electronics, mechanical processing, sheet metal processing, heavy mechanics, cable harnesses and complex assembly.

HIGHLIGHTS 2025

FEB: New factory inaugurated in Sweden 8,800 sqm assembly hall in Töcksfors, improved process and efficiency.

MAR: Acquisition of Leden completed Closed acquisition of Leden, strengthening of mechanics in Finland/Estonia (including 21,000 m² Oulainen)

MAR: Defense program LYNX launched In response to a new geopolitical situation with a special program targeting the defense industry.

JUL: Agreement to acquire Milectria, a leading manufacturer of electrical equipment and systems for the defense industry

OCT: Milectria acquisition completed

OCT: Agreement to acquire BMK (~1,500 employees; ~ SEK 3.3 billion in annual sales), completion of the HANZA Strategic Plan 2025 and positioning of HANZA among the largest listed contract manufacturers in Europe.

NOV: New factory in Finland 10,000 m² in Oulainen, Finland to support further capacity expansion.

DEC: New factory in Sweden Factory expansion in Mechanics Årjäng, Sweden completed

JAN 2026: BMK acquisition completed

The acquisition of the German company BMK makes HANZA one of the largest listed contract manufacturers in Europe.

JAN 2026: Supplier of the Year HANZA awarded Supplier of the Year by 3M in competition with over 6,000 suppliers.

HANZA was voted Saab Supplier of the Year

Outlook HANZA. Annual Report 2025 BMK establishes a new platform in Germany. Structural trends support our direction. The LYNX program (defense and security) is expected to create new market opportunities

Qi 2026

PowerPoint Presentation

Year-end report 2025

hanza-q4-2025-audiocast.pdf

Geographical distribution of sales:

2025 (SEK)

Sweden 2.32 billion

Finland 1.49 billion

Germany 585 million

Other Europe Union 482 m

Norway 280 m

Estonia 237 million

The Rest of Europe 167 million

Poland 164 million

North America 141 million

Elsewhere in The W 90 million

The Czech Republic 70 million

🔧 Juan summary (short & direct)

"Hanza delivers picture-book growth: sales high, margins high, cash flow high - and debt is falling like a stone. 2026 is the big leap, 2027-2028 the quality phase. To me, this looks like a clean-scaling industry champion."

"Hanza is growing brutally, improving margins and rapidly reducing debt. This is the kind of industrial compounder the market loves."

Market value: 8,453

Number of shares (in thousands) 62,798

Date of publication 24.02.2026

"Valuation falls faster than earnings rise - exactly the mix that attracts the market."

HANZA $HANZA (+0.67%)
KITRON $KIT (-0.25%)

"Hanza is pulling away from Kitron - stronger growth, better margins, double the cash power.
Kitron remains solid, but Hanza has long been in the value momentum orbit."

PRICE: €16.62 (07.05.2026 at 13:26) @Raketentoni

$HANZA (+0.67%)

11 Comments

Dirty30@Dirty30

my screener had also spit out 😁

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Tenbagger2024@Tenbagger2024

@Dirty30 and with the price movement. But I also like the outlook

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Dirty30@Dirty30

@Tenbagger2024 I am always amazed at how many great companies come from Sweden. In my opinion, they play in a league of their own in Europe when it comes to micro and small caps.

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Tenbagger2024@Tenbagger2024

@Dirty30 Sweden yes, but Scandinavia in general. I already have Kitron in my portfolio. But after the analysis I would like to add a position in Hanza

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Dirty30@Dirty30

@Tenbagger2024 the valuation is definitely a joke. Even with multiple expansion, there is still a lot of potential here if they continue to deliver.

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Tenbagger2024@Tenbagger2024

@Dirty30 FCF yield rises to over 7 I think that's really good for a contract manufacturer. Margins still have some room for improvement. PEG is good due to double-digit profit growth. What more could you want. Maybe wait for a small correction. Above all, the Scandinavian defensive companies are doing well. Look at Kongsberg and Saab. The Grippen is very popular in the Ukraine. And Embraer is probably now also building them in South America. Hanza could perhaps also benefit from this.

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Artiskon@Artiskon

Do I hear an "all-in !" here? ? :)

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Tenbagger2024@Tenbagger2024

@Artiskon Let's see what the prompts have to say. @Aktienhauptmeister , @Raketentoni

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Brian@Aktienhauptmeister

@Tenbagger2024 My dear Tenbagger, you knock quite often. You seem to have tasted blood and are keen on my scythe ? Ready for execution?

The investment narrative: The Scandinavian cluster champion

HANZA breaks with the classic image of the contract manufacturer. Instead of a simple workbench, the company acts as a strategic partner that combines mechanics and electronics in regional "manufacturing clusters". In a world of re-shoring and decentralized supply chains, HANZA is the beneficiary of Europe's industrial sovereignty.

🛠️ Reaper DNA check
- Growth monster: With sales doubling to SEK 2.65 billion in Q1 2026, HANZA proves that it can not only buy acquisitions (BMK), but also scale them operationally.
- Margin expansion: The operating margin (EBIT) is climbing towards 8.6% (adjusted), with the mature clusters already scratching the 10% mark.
- Financial discipline: Despite massive acquisitions, the gearing ratio is falling rapidly; net debt/EBITDA is stable at 1.0x.
- Efficiency: An ROE of over 20% shows how effectively the management is using shareholders' capital in the new factories (e.g. Töcksfors).

🚀 Growth levers & catalysts
- Defense & Security: The newly launched LYNX program positions HANZA as a key supplier to the defense industry (e.g. Saab), a sector with extremely long and stable cash flows.
- BMK synergies: The full integration of German manufacturing giant BMK opens up Europe's largest industrial market and offers massive cross-selling potential.
- Blue-chip validation: Awards such as "Supplier of the Year" from giants like 3M underline the technological superiority and delivery reliability.

⚠️ Valuation & risks
- Hype multiple: With a P/E ratio of approx. 26x for 2026, the share is no longer a bargain. The market is already pricing in a perfect margin improvement scenario.
- Economic dependency: As a contract manufacturer, HANZA remains vulnerable to a broad industrial downturn in Germany and Scandinavia.
- Integration risk: Scaling to over 3,400 employees requires the utmost management precision; any delay in synergies would immediately put pressure on the valuation.

MY VERDICT:
"HANZA is the answer to the question of how to benefit from the renaissance of European industry. Q1 2026 was a punch in the stomach for the bears - the scaling is going perfectly. But beware: at €17, the silverware is already highly polished. If you get in here, you are buying quality at a proud price. A thoroughbred compounder for the watchlist, where you wait for setbacks."

Status: 🔭 WATCH (Hold for investors)
Reaper Score: 6.0/10 (points deducted only because of the ambitious valuation)

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Raketentoni@Raketentoni

**Mr. Prompt has the data lines ice cold for HANZA's Q1 report ☕ ☕

Greetings to Tenbagger2024. Your buddy absolutely nailed it here. I ran his facts and figures through the AOK machinery and compared them with the official Q1/2026 reports.

Here's the ice-cold fact check for his "picture-book growth".

### Fact check: The naked Q1 figures

Tenbagger2024 was not exaggerating. The figures are frighteningly accurate to reality:

* **Sales:** ** SEK2.646 billion** (previous year: SEK1.326 billion). That is exactly a doubling (+ 100 %). Even if we take the currency and acquisition-adjusted *organic* growth, we are at a brute **20 %**.
** **Earnings & EPS:** EPS (diluted) in Q1 was exactly SEK **2.08** (previous year: SEK 0.90).
** **Cash flow:** Your buddy says "cash flow up" - and how! Operating cash flow in the first quarter amounted to a whopping SEK **424 million** (previous year: SEK 68 million). That is an increase of over 500%.

### The ice-cold AOK formula check

Since we are completely ignoring the dividend at your request, let's take a look at the purely operating substance.

**1. core quality formula (the quality check)**
**Score = sales growth (%) + operating margin (%)**
Let's take the fair, purely organic growth (so as not to visually distort the BMK takeover) and the hard operating margin:

* **Growth (organic):** 20.0 %
** **Margin (operating):** 8.3
** **Result:** 20.0 + 8.3 = **28.3 points**
* Judgement:** **Very good (> 25)** If we take inorganic growth (100%), Hanza is off the scale anyway. But even organically, the thing is an absolute quality compounder that pulverizes our AOK hurdle cold as ice.

**2. cash flow quality formula (the cash machine)**
The free cash flow is terrific thanks to the massive jump in operating cash flow to SEK 424m. This shows us that the profits do not just exist on paper, but that real money is flowing into the Swedish accounts. This is exactly the kind of "real cash machine" we are looking for as a foundation.

**3. the exclusion rules (red flags)**
Is there stagnant growth here? No. Is the margin permanently below 5%? No, it is actually climbing towards 9-10% for comparable units. **No red flags

### The Story: Kitron vs. Hanza & The BMK Takeover

His conclusion ("scaling is going perfectly" and "Hanza is pulling away from Kitron") is absolutely fundamentally sound.
The strategic masterstroke was the completion of the BMK acquisition in January 2026, which not only made Hanza one of the largest listed contract manufacturers in Europe on paper, but also gave it a huge platform in the DACH region. While excellent but cozier competitors like Kitron are operating solidly, Hanza is using its momentum to scale aggressively. They are using the synergies of their cluster strategy (shorter supply chains, nearshoring in Europe) to drive up margins.

And as far as debt is concerned: despite these mega acquisitions, the equity ratio rose to a strong 45.2% in the first quarter of 2026. The balance sheet is stable.

### Mr. Prompt's conclusion on Tenbagger2024

Your buddy is absolutely right. This is not a gamble on the numbers, but hard proof that a classic industrial company can mutate into a real growth machine through clever M&A and nearshoring. Hanza is currently a textbook example of an industrial compounder.

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Paulchen@Divident_e

My dear. You should always keep your eyes open

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