Mips' Q2 2026: Koroyd Integration and Safety Surge Rekindle High-Octane Growth

After a tariff-driven lull, Mips posts 42% organic growth, settles its U.S. legal dispute, and sees its safety segment accelerate on the back of the Koroyd acquisition.

MIPS.ST · Earnings Call · 2026-07-16

A Quarter of Reacceleration

Mips AB (publ) delivered a standout Q2 2026, with net sales up 72% and organic growth of 42% — a sharp reversal from the tariff- and inventory-driven slowdown that plagued 2025. The company’s CEO, Max Strandwitz, opened the call with a clear tone of confidence: “We did see strong development with 72% growth in the quarter. Organic growth was 42%.” — Max Strandwitz, CEO · 2026-07-16 This marks a return to the growth trajectory the market had come to expect from Mips before the Koroyd acquisition and the broader trade disruptions. Even more striking is the profitability story. CFO Karin Rosenthal reported “Adjusted EBIT increased by 98%, with an adjusted EBIT margin of 46.7% versus 40.4% last year.” — Karin Rosenthal, CFO · 2026-07-16 This margin expansion — despite the dilutive mix from Koroyd’s lower gross margin — underscores the scalable business model that Mips has long touted. Curiously, the adjusted EBIT margin in Q2 was only a few points shy of the company’s 50% long-term ambition, and management explicitly said they don’t expect to hit that this year, but the trajectory is clear.

The Koroyd Effect

Koroyd, acquired in 2025, is now fully embedded in Mips’ portfolio. The safety segment — which includes Koroyd alongside legacy Mips safety products — posted a staggering 604% net sales growth in Q2 (80% organic). The growth is not just from the acquisition base; the company is rolling out full‑brim helmets, a product format that is gaining traction in the U.S. industrial market.

The main driver of the acceleration of growth is the rollout of the full brim helmets, which seems to be very well accepted on the market.
Max Strandwitz, CEO · 2026-07-16

This comment, from the Q&A, underscores the operational success of the integration. Koroyd’s technology is also expanding into adjacent categories — gloves, body protection, and footwear — which the CEO described as a “body protection” push. The company’s commitment to the Safety category is further validated by a new partnership with Dräger for firefighting helmets, a market where Mips has little prior exposure. The acquisition is also driving Koroyd acquisition synergies: existing Mips customers are adding Koroyd products, and the combined portfolio is creating a “cross‑contamination” of interest across brands.

Profitability and the Legal Overhang

The quarter’s Good underlying improvement in profitability is a critical marker. Adjusted EBIT margin expanded more than 6 percentage points year‑over‑year, while gross margin held steady at 74.1% (vs. 74.2% in Q2 2025). This is notable because settlement agreement regarding the U.S. legal dispute was signed on July 2, just after quarter‑end. The settlement amount of $3.25 million will hit Q3, along with a few million in legal fees. This removes a persistent overhang: in prior quarters, legal costs were a recurring drag on earnings. In the 2025 Q4 call, management had guided to roughly SEK 10 million per quarter of legal spend; now that the dispute is resolved, those costs will fade, providing a tailwind to profitability in coming quarters.

Outlook: Flat Market, Growth Through Share Gains

Management remained cautiously optimistic about the bike market, noting that U.S. inventory levels are at historic lows and that Europe continues to outperform. “If we talk volume on the market, it seems to have flattened out, so basically around zero. … We are betting on a flat market for the rest of this year.” — Max Strandwitz, CEO · 2026-07-16 This pragmatic stance suggests Mips will continue to outgrow the market through innovation (e.g., the premium and lower‑price segments) and geographical expansion — particularly in Asia, where growth rebounded to 80% in the quarter after a weak Q1.

The company reaffirmed its long‑term targets of >30% organic growth and an EBIT margin ambition above 50%. While the full‑year margin target appears out of reach, the underlying trajectory is positive. As CEO Max Strandwitz noted: “With growth comes our improvement in underlying profitability. That has not changed.” — Max Strandwitz, CEO · 2026-07-16

For investors, the clear takeaway is that Mips has emerged from the tariff-induced trough with a stronger, more diversified portfolio. The Koroyd acquisition has not only added a high‑growth safety business but also expanded the total addressable market. The settlement of the legal dispute removes a tangible earnings drag. With a Safety category now contributing 15% of total sales and a clear path to further scaling, the company appears well positioned to sustain its historic growth premium.