SECTRA (SECT) Q1 25/26 earnings summary

Executive summary

• Order bookings more than doubled year-over-year, driven by strong performance in the US and Canada, primarily through SaaS and major new contracts in medical IT and cybersecurity.

• All operating areas reported growth, with significant progress in transitioning to a pay-for-usage SaaS and service-based model.

• Customer satisfaction remains high, especially in North America, supporting continued expansion.

• Net sales rose 5.8% to SEK 765.9 million, with recurring revenue up 13.9% and cloud recurring revenue up 46.1% year-over-year.

• Operating profit increased 19% to SEK 118.8 million, with a margin of 15.5%.

Financial highlights

• Contracted order bookings reached SEK 1,309.5 million, up 112.9% year-over-year; guaranteed order bookings were SEK 1,192.3 million, up 119.5%.

• Net sales were SEK 765.9 million, up 5.8% (12.1% at unadjusted exchange rates).

• Recurring revenue was SEK 549.2 million, up 13.9%; cloud recurring revenue was SEK 179.4 million, up 46.1%.

• Operating profit was SEK 118.8 million, up 19.0%; profit for the period was SEK 102.8 million, up 27.9%.

• Earnings per share increased 26.2% to SEK 0.53.

Outlook and guidance

• Large contracts signed in recent years will begin generating revenue this fiscal year, but full ramp-up will take 2–3 years.

• Transition to service and cloud-based sales is expected to drive stable, long-term recurring revenue growth.

• Sequential recurring revenue growth is expected to remain gradual as new customers are onboarded incrementally.

• Increased investment in resilience and security in NATO countries is anticipated to create long-term opportunities.

• Currency exposure remains significant due to a large share of revenue in foreign currencies.