SECTRA (SECT) Q3 25/26 earnings summary

Executive summary

• Net sales increased by 8% to SEK 2.5 billion for the nine-month period, with profit per share up 18% to SEK 2.5 per share.

• Achieved highest customer satisfaction in the industry for the thirteenth consecutive year, with strong order bookings and continued leadership in enterprise imaging solutions.

• Cloud recurring revenue grew 58% year-over-year, now making a direct impact on profitability.

• Strategic acquisition of Oxipit, an autonomous AI company, to enhance diagnostic imaging capabilities.

• Transition to service-based and cloud sales is progressing, driving recurring revenue growth and long-term value.

Financial highlights

• Nine-month net sales rose 7.9% year-over-year to SEK 2,508.5 million; recurring revenue up 18.5% to SEK 1,769.1 million.

• Cloud recurring revenue increased 57.5% to SEK 641.1 million; recurring revenue now 70.5% of total sales.

• Operating profit increased by 21% to SEK 502 million, with an improved margin of 20%.

• Cash flow from operations reached SEK 578 million for the period, with SEK 418 million generated in Q3.

• Profit for the period was SEK 406.3 million, up 18.0% year-over-year (excluding patent settlement).

Outlook and guidance

• Large contracts are beginning to go live, with more expected over the next year, supporting future revenue growth.

• High costs will persist in the near term due to ongoing implementations, but recurring revenue will reduce quarterly variations.

• Delays in Secure Communications expected to impact results for the remainder of the fiscal year; normalization anticipated next year.

• Continued investment in innovation, cloud services, and AI integration to drive future growth.

• The Oxipit acquisition is not expected to have a material financial impact this year, but is seen as strategically significant.