INVISIO Q2 2025 slides: Revenue dips but order intake surges 64%

Introduction & Market Context

INVISIO Communications AB (STO:IVSO) released its Q2 2025 interim report on July 18, 2025, revealing mixed results with declining revenue but significantly improved order intake. The company’s stock closed at SEK 389.5 on July 17, and saw a modest 1.04% increase following the presentation, suggesting investors were largely satisfied with the results despite revenue challenges.

The communication systems provider, which primarily serves defense, law enforcement, and security industries, reported a 23% year-over-year revenue decline but emphasized that core business growth remained positive when excluding a large one-time order from the previous year.

Quarterly Performance Highlights

INVISIO reported Q2 2025 revenue of SEK 426.9 million, representing a 23% decrease from the SEK 552.7 million recorded in Q2 2024. However, the company highlighted that excluding a significant third-party radio system order announced in March 2024, revenue actually increased by 3% to SEK 399.4 million.

As shown in the following financial highlights table:

Gross profit for the quarter reached SEK 242.1 million, down 6% year-over-year, while the gross margin improved to 56.7%. Operating profit (EBIT) fell more significantly, dropping 40% to SEK 60.2 million, reflecting increased operating expenses as the company continues to invest in growth initiatives.

The most encouraging metric was order intake, which surged 64% to SEK 401.3 million, indicating strong future revenue potential. The order book stood at SEK 705.3 million at quarter-end, a slight 2% decrease from the previous year.

Detailed Financial Analysis

INVISIO’s financial performance shows a company in transition, with current revenue challenges but promising indicators for future growth. The nine-quarter overview provides valuable context for understanding the company’s trajectory:

Cash flow from operations was negative at SEK -1.6 million for Q2 2025, compared to SEK 178.1 million for the first half of the year. The company’s inventory value stood at SEK 306.4 million at the end of the period, while cash and cash equivalents totaled SEK 315 million.

The company’s order intake and revenue analysis reveals important geographical and product trends:

Operating expenses increased to SEK 181.9 million, contributing to the decline in operating profit. The company maintained a strong balance sheet with shareholders’ equity of SEK 1,040.1 million and an equity/assets ratio of 72.4%.

Strategic Initiatives

CEO Lars Højgård Hansen emphasized the company’s strategic progress despite the revenue decline, noting: "INVISIO continued to make solid progress" in Q2. A significant development was securing a new European customer with an order valued at approximately SEK 145 million, demonstrating the company’s ability to expand its customer base.

The CEO’s comments highlighted both current performance and future outlook:

INVISIO also announced the opening of a new UK office, strengthening its presence in a key market. The company has updated its EBIT margin target to at least 20 percent, signaling confidence in its ability to improve profitability over time.

The company continues to broaden its customer offerings, as illustrated in its business overview:

Forward-Looking Statements

Management expressed optimism about the remainder of 2025, with CEO Lars Højgård Hansen stating that with a "well-stocked order book, the company is expected a strong end to 2025." This outlook aligns with comments from the previous quarter, where the company anticipated significant revenue impacts from increased national defense budgets in the second half of the year.

The order book of SEK 705.3 million provides substantial revenue visibility for coming quarters. Additionally, the 64% increase in order intake suggests growing demand for INVISIO’s communication solutions across its target markets.

INVISIO estimates its total addressable market for personal communication equipment and intercom systems to be worth approximately SEK 25 billion annually, indicating significant growth potential beyond current revenue levels.

Competitive Industry Position

INVISIO maintains its focus on high-performance communication solutions for professional users in demanding environments. The company’s product philosophy is captured in its tagline "Protection at work, a better life at home," highlighting the dual benefits of its hearing protection and communication systems.

With 312 employees as of June 30, 2025, INVISIO continues to invest in its organizational capabilities to support future growth. The company’s ability to secure a major new European customer amid challenging market conditions demonstrates its competitive strength and the appeal of its product offerings.

In comparison to its Q1 2025 performance, which showed record high revenue with a 10% year-over-year increase, the Q2 results reflect the lumpy nature of defense and security contracts. However, the strong order intake suggests the company is well-positioned to return to growth in upcoming quarters.

Full presentation:

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