SECTRA (SECT) Q4 24/25 earnings summary

Executive summary

• Achieved record contracted order intake of SEK 8.7 billion, with a book-to-bill ratio of 2.7, driven by large contracts in North America and other markets.

• Net sales for the fiscal year reached SEK 3.24 billion, up 9.3% year-over-year, with recurring revenue up 19.9% and cloud recurring revenue up 48.9%.

• Transition to service-based and cloud-based (SaaS) models advanced, increasing recurring revenue share to 70% and impacting revenue recognition.

• Profit per share increased by 32% to SEK 2.92, supported by a one-time patent settlement of SEK 110 million.

• Proposed ordinary and extraordinary dividends, reflecting robust cash flow and financial position.

Financial highlights

• Contracted order bookings rose 39.9% to SEK 8,706.1 million; guaranteed order bookings up 137.7%.

• Operating profit, excluding the patent settlement, rose 18% year-over-year to SEK 613 million; Q4 operating profit was SEK 199 million.

• Operating profit margin improved to 18.9% due to higher gross margin and controlled operating expenses.

• Cash flow from operations was strong at SEK 922 million for the year, with SEK 222 million in Q4.

• Earnings per share reached SEK 2.92, and cash flow per share was SEK 4.79.

Outlook and guidance

• Currency headwinds expected to impact sales and profitability in the coming year due to a stronger Swedish krona and exposure to USD, EUR, and GBP.

• Highest priority is accelerating customer onboarding to realize revenue from the large order backlog.

• SaaS and cloud transition expected to continue for another 1–2 years, with recurring revenue and cloud sales as key growth drivers.

• Major customers going live may temporarily pressure profitability before full revenue realization.

• Long-term demand for medical IT and cybersecurity expected to remain strong due to demographic and digitalization trends.