Mildef, a leading defense company, announced a strategic decision to restructure its operations in response to strong market conditions within the defense sector. The company will incur restructuring costs of approximately 310 million Swedish kronor in the fourth quarter, as outlined in a recent press release.
The move is driven by Mildef’s commitment to consolidating its efforts to enhance its long-term competitiveness, profitability, and cash flow. Following the acquisition of roda computer, Mildef is focused on establishing itself as a key player in the ongoing buildup of defense capabilities in Europe, a trend expected to continue for years to come. As a result, the company intends to streamline Handheld’s product range exclusively towards defense applications and integrate the militarized components of Handheld’s product portfolio into Mildef’s operations, according to CEO Daniel Ljunggren.
This strategic realignment will impact 20 positions within the company. Of the 310 million kronor in costs incurred, approximately 285 million will not affect cash flow. The restructuring measures are projected to decrease Mildef’s annual net sales by around 70 million kronor while generating cost savings of 50 million kronor per year. Additionally, the operating profit (EBIT) is expected to improve by approximately 20 million kronor annually. The cost-saving initiatives will be implemented gradually, with visible results anticipated by the second quarter of 2025.
Mildef’s proactive approach to restructuring underscores its commitment to adapting to evolving market dynamics and positioning itself for sustained growth in the defense industry. By focusing its resources and capabilities on defense-related technologies, the company aims to strengthen its market position and drive long-term value for shareholders and stakeholders alike.