The historical core of Mycronic remains the Pattern Generators division, the group's true crown jewel. It designs laser mask writers and metrology systems for the manufacturing of photomasks used in displays and semiconductors. A photomask is no mere accessory: it is the critical master template used to transfer designs onto wafers or display substrates. Mycronic holds a preeminent position in this field. All display manufacturers utilize photomasks produced with its machines, while a vast majority of the world's semiconductors also rely on photomasks generated by laser mask writers. In 2025, this division generated SEK 3,232m in revenue and SEK 1,623m in EBIT, representing a remarkable margin of 50.2%. This combination of technological dominance, high barriers to entry, and profitability provides the investment case with its backbone.

However, reducing Mycronic to this single business line would be to miss the bigger picture: the group has methodically built a broader, more resilient model with better exposure to major electronics trends. Its PCB Assembly Solutions division addresses the flexible assembly of electronic boards with a comprehensive offering ranging from jet printing to pick-and-place, including 3D inspection and SMT line management software. This segment specifically targets sectors where complexity outweighs volume: defense, medical, aerospace, and industry. While 2025 proved more challenging in Europe, with margins dipping to 5.8%, the division gained market share in a declining market—often the most significant operational signal to monitor during a cyclical trough. The group remains heavily exposed to Asia, particularly China, which accounts for 46% of sales.

The third pillar, High Volume, provides Mycronic with direct exposure to consumer electronics, electric vehicles, and certain semiconductor applications. Here, the group notably supplies dispensing and conformal coating systems. These technologies are less visible but absolutely decisive for protecting components, managing thermal loads, and ensuring the reliability of electronic modules. The fact that one in five electric vehicles incorporates High Volume solutions illustrates the depth of this niche. In 2025, the division posted SEK 1,720m in sales, up 20%, with an EBIT margin of 15.5%, while continuing its expansion outside China via a new plant in Thailand.

Finally, Global Technologies has become the group's laboratory for external growth and diversification. It encompasses PCB testing, die bonding, photonics, plasma, and now Magnetic Test. This division is particularly interesting as it captures several growth pockets linked to AI: testing of complex PCBs for servers, ultra-precise assembly of optical components for high-speed interconnects, plasma cleaning for advanced packaging, and MRAM and magnetic sensor testing. In 2025, sales surged by 43% to SEK 1,632m, and EBIT nearly doubled. This serves as proof that Mycronic's diversification is no longer a theoretical promise but a financial reality.

The business model is, at its core, of high quality. Mycronic sells critical equipment to specialized B2B clients, often under the radar, and then monetizes an installed base of over 35,000 systems over the long term through service, parts, and support. Aftermarket now represents 25% of group sales, totaling
SEK 1,977m in 2025. This recurring revenue stream buffers the natural cyclicity of equipment sales and provides better visibility than a simple reading of quarterly orders would suggest. At the group level, Mycronic achieved SEK 7,938m in revenue, SEK 7,757m in order intake, and SEK 1,940m in EBIT in 2025, while allocating SEK 994m to R&D, or 13% of sales. Few niche industrials combine growth, innovation, and financial discipline to such an extent.

We are positive on the stock ahead of the April 24, 2026 publication. This conviction is fueled by recent order flow. On April 14, they announced an order for a customized SLX mask writer from a new customer, valued at $27m to $30m, deliverable in 2028. In recent months, the group has also reported several other SLX orders, including one for a new customer in Asia and two others for existing clients. Taken together, these elements suggest sustained commercial momentum in Pattern Generators and reinforce the idea that order intake could surprise to the upside. This is an inference, not a certainty, but it appears well-founded to us.