RaySearch Laboratories (RAY) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 net sales of SEK 332 million, a 29% year-over-year increase, with strong growth in license (+39.4%) and support (+17.3%) revenues.

• Operating profit reached SEK 75 million (23% margin), or SEK 95 million (29% margin) excluding currency effects; profit after tax was SEK 56.8 million.

• Order intake surged 72% to SEK 410 million, including a major SEK 77 million order from Heyou Hospital in China and a contract with Odense University Hospital, Denmark; backlog at SEK 1,734 million.

• Continued leadership in treatment planning for particle therapy, with significant new product launches and customer wins in Europe and China.

• Cash flow from operations was SEK 147 million; cash and cash equivalents at period end SEK 503 million; no loans.

Financial highlights

• Net sales rose 29% year-over-year to SEK 332 million; license sales grew 39% to SEK 165 million; support revenue up 17% to SEK 125 million.

• Operating expenses increased 12% to SEK 216 million, mainly due to higher headcount.

• Profit after tax: SEK 56.8 million; EPS: SEK 1.66.

• Rolling 12-month net sales nearly SEK 1.3 billion; EBIT SEK 290 million (23% margin).

• Backlog at end of March SEK 1,734 million, with SEK 546 million expected as net sales in the next 12 months.

Outlook and guidance

• Confident in achieving at least 25% operating margin by 2026, with strong sales and cost control supporting margin expansion.

• Expecting further RayCare orders in 2025, especially as integration with Varian TrueBeam expands addressable market.

• Revenue from large Chinese order to be fully recognized by end of 2026; Spanish Ortega project revenue to be recognized over next 3+ years.

• Favorable growth expected for the remainder of 2025, supported by robust order intake and product innovation.