Mycronic's Record Quarter: Riding the AI Infrastructure Wave
Record orders, raised guidance, and a restructuring pivot as Global Technologies surges on optical and PCB test demand.
MYCR.ST · Earnings Call · 2026-07-14
An Exceptional Quarter
Mycronic's Q2 2026 was nothing short of a breakout. The company reported record order intake, up 119% to SEK 2.9 billion, and second-best sales of SEK 2.4 billion, with a gross margin of 57% and EBIT margin at 29%. As CEO Anders Lindqvist put it in prepared remarks, “We had a record order intake up 119%, but also the level is very high at SEK 2.9 billion, we have never been higher.” — Anders Lindqvist, CEO · 2026-07-14 Consequently, the full-year outlook was raised by half a billion to SEK 9.25 billion. The quarter's strength was broad-based, but the standout was Global Technologies, which delivered an order intake of SEK 1,111 million—up 176%—and an EBIT margin of 36%.The AI Infrastructure Tailwind
Global Technologies is now the undisputed growth engine, driven almost entirely by the AI infrastructure buildout. The division's PCB test and die bonding businesses are booming, feeding directly into the production of optical transceivers and advanced circuit boards. In the Q&A, Anders Lindqvist elaborated: “Super strong demand. This is impacting die bonding directly with those customers, but also the whole AI infrastructure is impacting PCB test as well.” — Anders Lindqvist, CEO · 2026-07-14 The company is also benefiting from AI infrastructure in its High Volume division, where it sells dispensing solutions for server assembly and final assembly of optical modules. Even die bonding—historically a niche—has become a critical bottleneck, with lead times extending beyond 18 months. The demand is not isolated to Mycronic; global keyword trends for the quarter are dominated by terms like "AI data centers," "high bandwidth memory," and "co-packaged optics," and recent reporters such as AEHR (semiconductor equipment) and Ericsson (communication equipment) underscore the same theme. Mycronic is clearly riding a sector-wide wave, but its positioning in the niche of photonics packaging is distinctly company-unique.Restructuring and Contrast
While Global Technologies soars, PCB Assembly Solutions struggles. The division took a SEK 39 million restructuring charge and remains loss-making, prompting a restructuring program aimed at achieving at least 10% EBIT margin even in downturn scenarios. Anders Lindqvist noted, "we have now started a restructuring program, where we want to bring the EBIT margin back about 10%." This contrast is instructive: the company is actively pruning a low-growth, competitive business while doubling down on the AI-driven opportunity. The funding for this pivot is robust—the company ended the quarter with SEK 2.7 billion in cash and a net cash position of SEK 2.3 billion.Capacity and Outlook
To keep pace with PCB test demand, Mycronic is expanding its factory by 25% (a commitment confirmed by Anders Lindqvist: “We are expanding the factory, that effect will come towards the end of the year” — Anders Lindqvist, CEO · 2026-07-14), with the full benefits expected early next year. The order book is already filled well into 2027 and early 2028, providing unusual multi-year visibility. CFO Pierre Brorsson tempered expectations on margin sustainability, noting that the 36% EBIT margin in Global Technologies is "a little bit on the high side" and that a normalized level around 30% is more realistic:Still, even a 30% margin would be a step change for the division, and the company's raised guidance for 2026 suggests management's confidence. As the world races to build out AI infrastructure, Mycronic has positioned itself as a quiet but critical enabler—a story that is far from priced in for a name that many still classify as a specialty machine builder. Mycronic's blend of record order intake, strategic restructuring, and a clear AI-driven growth vector makes this quarter a genuine inflection point. The global tape has been rewarding names tied to AI hardware supply chains, and with this report, Mycronic is now squarely in that camp.I think 36% that we delivered in the quarter is a little bit on the high side, if you want to have a direction, I think for now, I think we will be able to be around the 30% mark.