INVISIO (IVSO) Q2 2024 earnings summary

Executive summary

• Achieved record sales and strong growth in Q2 2024, with several new product launches, including the INVISIO X7 headset and new intercom solutions, reinforcing market leadership.

• Delivered a large radio and intercom order, significantly impacting quarterly results; efforts made to distinguish regular business from this one-off order.

• High market activity and strong positioning, with robust product portfolio and high employee engagement.

• Order intake showed normal fluctuation, with a shift toward multiple medium-sized orders and rapid delivery as a competitive advantage.

• Strong customer interest, especially in solutions for armored vehicles and high-noise environments.

Financial highlights

• Q2 2024 revenue reached SEK 553 million (up 105% year-over-year); excluding radio order, revenue was SEK 389 million, a company record.

• Gross margin for regular business was 63.2% (up from 60.5%); total gross margin including radio order was 46.6%.

• EBIT margin was 18% in Q2, up from 16.8% year-over-year; EBITDA margin was 20.8% (down from 22.4%).

• Operating expenses increased 24% year-over-year, mainly due to R&D and sales investments; one-offs in Q2 totaled SEK 15 million.

• Cash flow was negative due to prepayment for radio order, dividend payout (SEK 59 million), and late-quarter invoicing; cash and cash equivalents at period end were SEK 112 million.

Outlook and guidance

• Anticipates continued strong order intake and revenue growth in the second half of 2024, supported by high market activity and a strong order book.

• Majority of order book (80%) expected to be delivered within 12 months.

• Confident in ability to capitalize on increased defense spending and modernization needs over the next decade.