Sensys Gatso Group (SGG) Avanza Börsdag 2025 summary

Strategic direction and business model

• Focuses on four core markets: US, Australia, Western Europe, and the Middle East, aiming to increase recurring revenue from long-term contracts and managed services.

• Emphasizes end-to-end solutions, including hardware, software, and data processing, with ongoing technology advancements.

• Strategic pillars include market engagement, operational efficiency, talent management, and leadership with a new CEO focused on growth and service.

• Recurring revenue is prioritized for predictability and stability, with about half coming from the US and the rest from other regions.

• Actively monitors legislative changes to identify new market opportunities, especially in the US.

Financial performance and outlook

• Q3 2025 order intake reached MSEK 331, a significant increase, with 86% recurring revenue and 17% year-over-year revenue growth.

• Q3 revenue grew to MSEK 165, driven by US managed services and European projects.

• Q3 EBITDA rose to MSEK 29.2 (17.7% margin), a 110% increase over Q3 2024, with a positive 12-month rolling trend.

• 2025 revenue guidance maintained at MSEK 700-800; EBITDA guidance raised to the upper end of 12-14%.

• Large project backlogs in Sweden (SEK 850 million) and the Netherlands (SEK 500 million) support future revenue.

Regional business updates and market expansion

• US managed services market saw 17% YoY recurring revenue growth, with operations in 11 states and strong demand.

• Europe and Middle East projects include major rollouts in Sweden and the Netherlands, plus ongoing expansion in Saudi Arabia.

• Australia reported Q3 order intake of MSEK 196, including renewals, expansions, and new contracts.

• Joint venture in Ghana progressing through legislative processes toward operational status.

• Actively manages FX risks and tariffs, especially between European production and US sales.