Mips AB, the Stockholm, Sweden-based helmet safety technology company, reported a strong fourth quarter on an organic basis, with revenue growing in the high teens, excluding currency effects. Taking into account the currency effect for the quarter, revenue rose just 2 percent for the period ended December 31. The company, which reports in the Swedish krona (SEK) currency, does most of its business in U.S. dollars and Chinese yuan due to the location of manufacturing facilities for its customers (the helmet brands). The company’s license fee, which represents the majority of its revenues, is invoiced in U.S. dollars, and fluctuations in the exchange rate are said to have a significant impact on Mips’ net sales and profitability.

Company President and CEO Max Strandwitz called the fourth quarter “a good end to a challenging year” in his letter to investors this week, noting that the company had continued healthy progress in all categories. Mips also completed the acquisition of the companies behind the Koroyd brand, which Strandwitz said opens the door to new, long-term strategic opportunities for Mips. Koroyd offers solutions to improve impact absorption across various types of protective products.

He said momentum in Europe has remained strong, with Mips continuing to win market share, as European helmet brands are “equipping more and more helmet models with Mips’ safety system.”

“It is encouraging to see that the Mips safety system has become such a central part of many helmet brands’ overall safety efforts also in Europe,” the CEO commented. However, he said that sales to customers in the U.S. have been “volatile” and the company has seen an impact of the U.S. tariffs during the year.

“Our customers have periodically been hesitant to place orders as they have been unsure about whether the tariffs communicated would be permanent or only temporary,” Strandwitz shared. “This behavior has been consistent across many industries, especially in the sport & outdoor sector. The lower levels of purchases in both retail and from brands have meant that inventory levels of, for example, bikes are now at their lowest in a decade, apart from the pandemic years of 2020 and 2021. We also see a similar situation with reduced purchases and lower inventory levels of helmets.”

He said it was “particularly pleasing” that the company delivered growth in the U.S. market for the full year, driven by market-share gains from more helmet models equipped with Mips safety systems.

Fourth Quarter Summary
Net sales increased by 2 percent to SEK 147 million, with organic growth amounting to 18 percent for the quarter.

Gross margin was flat year-over-year at 72.9 percent of net sales for Q4.

Operating profit was SEK 47 million in Q4, compared to SEK 62 million in the prior-year Q4 period. Operating profit adjusted for items affecting comparability amounted to SEK 51 million in the fourth quarter. Strandwitz said the year-over-year decline is entirely due to legal costs, negative currency effects, and acquisition costs for the Koroyd acquisition.

Legal costs amounted to SEK 7 million in Q4. He said these costs are due to a patent-related dispute in which one of Mips’ U.S. customers is a party. Mips is not a party to the lawsuit, but as the lawsuit concerns areas where Mips has intellectual property rights that are an important cornerstone of the brand, Strandwitz said that Mips has chosen to get involved.

“We will continue to support our customers in their defense in 2026, similar to how we have acted in 2025, to best serve our customers’ interests, as well as our own. Mips’ own intellectual property rights are not part of this lawsuit,” the CEO committed.

Operating margin decreased to 31.8 percent of net sales in the quarter, compared to 42.9 percent in the prior-year quarter. Operating margin adjusted for items affecting comparability was 34.9 percent of net sales in the fourth quarter.

Profit for the period amounted to SEK 35.0 million, or SEK 1.33 diluted earnings per share, in the fourth quarter, compared to SEK 53 million, or SEK 1.99 per diluted share, in the 2024 fourth quarter.

Cash flow from operating activities amounted to SEK 52 million in the fourth quarter, down from SEK 87 million in the prior-year period.

During December Mips completed the acquisition of all shares in Koroyd SARL and SCP George TFE (together Koroyd) with annual sales of approximately SEK 120 million.

Full Year 2025 Summary
Net sales increased by 10 percent to SEK 533 million, with organic growth of 21 percent, said to be driven by strong growth in Europe, particularly in the Bike and Snow sub-categories.

Gross margin was 73.4 percent of net sales for the 2025 full year, compared to 72.5 percent in full year 2024.

Operating profit amounted to SEK 156 million in 2025, compared to SEK 174 million in 2024. Operating profit adjusted for items affecting comparability was SEK 160 million in 2025.

Operating margin decreased to 29.2 percent of net sales for the full year, compared to 36.1 percent in 2024. Operating margin adjusted for items affecting comparability was 30.1 percent in 2025.

Profit for the year amounted to SEK 120 million, or SEK 4.53 per diluted share, in 2025, compared to SEK 131 million, or SEK 5.32 per diluted share, in 2024.

Cash flow from operating activities amounted to SEK 148 million in 2025, compared to SEK 142 million in 2024.

The Board of Directors proposes a dividend of SEK 2.50 per share, corresponding to 55 percent of net earnings during the year.

Sport Helmet Category Summary
The Sport Helmet category, which accounted for nearly 90 percent of total sales for the year, delivered a “good” performance in the fourth quarter, with increased presence in the European market. Organic growth reached 17 percent in Q4, while full-year organic growth was 20 percent. In reported terms, net sales in the category inched up 1 percent to SEK 134 million for the quarter and grew 10 percent to SEK 478 million for the full year.

“The positive trend in the bike sub-category has continued during the quarter, which is our ninth consecutive quarter of growth in the important bike market,” Strandwitz shared. “Growth is still being driven by the European market. It is also positive to see that we continue to perform well and increase our market share in the important U.S. market, despite a challenging consumer market in this region.”

Developments in the snow sub-category were described as “erratic” during the year, and Stranwitz said they are pleased that the company delivered strong performance in the last quarter and for the year.

“The European market has had a good start to the season, especially when it comes to the all-important Christmas sales, while the U.S. market has had a slightly weaker season so far,” the CEO noted.

Image courtesy Mips AB