INVISIO (IVSO) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw strong underlying order intake and major new contracts, including a 10-year US Coast Guard agreement (up to SEK 930 million) and a 5-year Dutch Ministry of Defence agreement (up to SEK 365 million), but revenue and profit were impacted by delivery delays and increased product complexity.

• Multiple new products were launched, such as the T30 headset, INVISIO H-Series data hubs, and INVISIO Link wireless solution, expected to drive growth from 2026.

• The order book increased significantly, ending Q3 at SEK 887 million, up over SEK 180 million from Q2.

Financial highlights

• Q3 2025 revenue was SEK 291.3 million, down 17% year-over-year, mainly due to delivery delays; order intake reached SEK 480 million, and the order book strengthened to SEK 887 million.

• Gross margin for Q3 was 57% (57.7% last year), impacted by SEK 4 million in tariffs and currency effects.

• Operating margin for Q3 was approximately -1% (-1.1% last year); rolling 12-month margin stands at 17%.

• Operating cash flow was SEK 105.8 million, down from SEK 152.6 million in the comparable period.

• Earnings per share for Q3 was SEK -0.09 (SEK 0.85 last year); equity per share was SEK 22.32 at Q3 end.

Outlook and guidance

• Majority of delayed orders are expected to be delivered in Q4 2025 and Q1 2026, with Q4 anticipated to be stronger than Q3.

• Market activity is expected to remain high for several years, driven by increased defense budgets and modernization needs, especially in Europe and the U.S.

• New products are expected to drive growth from 2026, with the T30 and H-Series hubs highlighted as key contributors.

• Long-term EBIT margin target raised to 20%, but current rolling 12-month margin is 17.9%; Q4 performance will determine if the annual target is met.