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SECTRA (SECT) investor relations material
SECTRA Q2 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved high order bookings and increased sales, with strong order intake in North America and Europe, and improved profitability driven by customer satisfaction and expanded commitments.
Medical imaging IT and cybersecurity segments saw robust demand, with major new contracts and expanded agreements in key markets.
Transition to an as-a-service and cloud-based model is progressing, with significant new product launches and large contracts in Sweden, the UK, and the US.
Profit per share increased by 49% to 49.4%, and operating profit rose 47% to 46.8%, with a strengthened margin of 19%.
Financial highlights
Net sales increased by 9.4% year-on-year to SEK 1,616.4 million, with recurring revenue up 18% and cloud recurring revenue up 61%.
Contracted order bookings reached SEK 4.7 billion, down 2% year-on-year due to a large prior-year contract.
Book-to-bill ratio stands at 2.6.
Cash flow from operations was SEK 160 million, driven by profit growth but offset by increased receivables.
Dividend paid in Q2, with equity/assets ratio at 51%.
Outlook and guidance
Large contract go-lives and cloud transition will increase costs before revenue is recognized; significant revenue impact expected in the next fiscal year and beyond.
External costs will continue to rise in the second half due to major go-lives.
Margins may not remain at current high levels due to upfront cloud costs and ongoing investments.
No plans to change the 15% operating margin target; focus remains on long-term EBIT per share growth.
Product delivery delays in Secure Communications will negatively impact full-year results, with improvement expected next year.
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