Sensys Gatso Group (SGG) Q2 2024 earnings summary

Executive summary

• Order intake rose 37% year-over-year to SEK 418 million in Q2 and 86% year-to-date, with a strong backlog of SEK 1.14 billion in Sweden and the Netherlands, driven by US TRaaS contracts and new wins in Sweden, Netherlands, and Saudi Arabia.

• Revenue increased 26% year-over-year to SEK 167 million in Q2, with system sales up 32% and TRaaS recurring revenues representing 53% of total sales.

• EBITDA grew 28% year-over-year to SEK 25 million in Q2, with a 12-month rolling EBITDA of SEK 93 million, up 7%.

• Major contracts in Sweden and the Netherlands (SEK 1.14–1.25 billion total) are expected to drive multi-year revenue starting Q4 2024.

• U.S. market expansion led to 12 new contracts in H1, including five new customers and seven renewals/extensions.

Financial highlights

• Q2 2024 revenue: SEK 167 million (up 26% YoY); H1 2024: SEK 292 million (up 19% YoY).

• System Sales Q2: SEK 119–190 million (up 32–35% YoY); TRaaS revenue Q2: SEK 88 million (53% of total sales).

• Q2 2024 EBITDA: SEK 24.6–25 million (up 28% YoY); H1 2024: SEK 28.3 million (up 37% YoY).

• Q2 2024 EBIT: SEK 13.6–14 million (Q2 2023: SEK 5.6–6 million); H1 2024: SEK 6.7 million (H1 2023: SEK -3.0 million).

• Net income for Q2 2024: SEK 9.6 million; EPS: SEK 0.83.

Outlook and guidance

• Order backlog of SEK 1.14 billion for Sweden and Netherlands projects supports multi-year growth.

• New US contracts expected to contribute to revenue from late 2024.

• 2025 targets reaffirmed: revenue above SEK 1 billion, TRaaS revenue over SEK 600 million, EBITDA margin above 15%.

• Gradual improvement in available cash anticipated as Swedish and Dutch projects roll out.