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Introduction & Market Context
Detection Technology Oy (DETEC) reported a 6.6% year-over-year decline in net sales for Q2 2025, with mixed performance across its business segments. The company’s shares fell 4.52% to €11.05 following the August 7 presentation, approaching the lower end of its 52-week range of €10.45-€19.90.
The Finland-based X-ray detector solutions provider faced headwinds from a halt in security CT system installations in Europe and unfavorable currency effects, though it maintained growth in its industrial and medical segments.
Quarterly Performance Highlights
Detection Technology reported Q2 2025 net sales of €24.4 million, down from €26.1 million in the same period last year. EBITA declined more significantly to €1.7 million from €3.3 million, resulting in an EBITA margin compression to 7.0% from 12.7% in Q2 2024.
As shown in the following quarterly sales chart, the company has experienced fluctuating performance over recent years:
The company’s profitability has also been under pressure, with current EBITA margins well below the mid-term target of 15%:
For the first half of 2025, net sales reached €46.6 million, representing a 4.5% decline from €48.8 million in H1 2024. H1 EBITA fell to €3.1 million from €5.6 million, with the EBITA margin dropping to 6.7% from 11.4%.
The comprehensive financial table below highlights key metrics across quarterly and half-yearly periods:
Regional and Application Analysis
Detection Technology’s performance varied significantly across regions and applications. APAC dominated the company’s sales, accounting for 74.6% of Q2 2025 revenue at €18.2 million, growing 8.6% year-over-year. Meanwhile, EMEIA (Europe, Middle East, India, and Africa) suffered a 39.6% decline to €4.7 million, representing 19.3% of total sales. The Americas contributed 6.1% with €1.5 million in sales, down 5.2%.
The regional sales distribution for Q2 2025 is illustrated in the following chart:
By application, the security segment experienced the steepest decline, falling 28.2% to €8.2 million and accounting for 43.3% of total sales. The company attributed this to a "deeper-than-expected dip in demand" and the halt in security CT system installations in Europe.
In contrast, the medical segment grew 13.9% to €10.6 million (33.8% of total sales), with demand strengthening in China. The industrial segment increased 4.2% to €5.6 million (22.8% of total sales), driven by growth in TFT flat panel detectors and defense applications.
The following chart shows the Q2 2025 sales breakdown by application:
Similar patterns were evident in the half-year results, with the following distribution across applications for H1 2025:
Strategic Initiatives
Despite the challenging quarter, Detection Technology highlighted several strategic achievements, including:
- Maintaining strong momentum in flat panel detector sales, which increased 40% in H1
- Rolling out new products including X-Panel 43108a, X-Cargo, and X-Panel 2520z
- Making progress in ramping up operations in India
- Investing in new technology
The company is also renewing its "DT2030" strategy for the next five-year period, with details to be presented later this year. The core strategy focuses on delivering "smart X-ray detector solutions that drive customer success through exceptional usability to outgrow the market."
Additionally, Detection Technology advanced its sustainability agenda through increased use of green energy and promotion of environmental and work safety awareness. The company conducted an employee pulse survey with a stable average score of 3.4/4 and continued its children’s rights initiatives with UNICEF Finland.
Forward-Looking Statements
Detection Technology provided a cautious outlook for the remainder of 2025, expecting a single-digit year-over-year net sales decline in both Q3 and H2. The company cited several factors affecting this outlook, including:
- The geopolitical situation
- New U.S. import tariffs
- U.S. relations with other countries
- China’s healthcare reform
- Price competition, especially in China
The sales expectations for Q3 and H2 2025 are summarized in the following slide:
By sector, industrial sales are expected to grow in Q3, while medical and security sectors are projected to decline. Regionally, sales in APAC and EMEIA are expected to remain stable, while Americas sales are forecast to decline by double digits in Q3.
Despite near-term challenges, Detection Technology maintained its medium-term financial targets, including:
- Annual sales growth exceeding 10%
- Operating margin (EBITA) of 15%
- Annual dividend or returned capital of 30-60%
These targets suggest management remains confident in the company’s long-term growth prospects despite current headwinds in key markets and segments.
Full presentation:
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