Sectra posts strong Q1 with doubling order bookings, higher profit

Published 04/09/2025, 07:54

Investing.com -- Sectra reported a strong start to its fiscal year with first-quarter contracted order bookings more than doubling, rising 112.9% to SEK 1.31 billion, of which SEK 1.19 billion were guaranteed.

About 7% of guaranteed bookings were recognized as revenue in the quarter, with a further 13–23% expected to convert within the next year.

Net sales increased 5.8% year-on-year to SEK 765.9 million, or 12.1% when measured at unadjusted exchange rates. Recurring revenue climbed 13.9% to SEK 549.2 million, while cloud recurring revenue jumped 46.1% to SEK 179.4 million.

Operating profit rose 19% to SEK 118.8 million, equal to a margin of 15.5%, with the increase partly offset by higher costs for share-based incentive programs.

Profit for the period was SEK 102.8 million, up from SEK 80.4 million a year earlier.

Operating cash flow turned positive at SEK 118.1 million, compared with a negative SEK 56.7 million in the prior-year quarter, mainly due to lower receivables.

Sectra CEO Torbjörn Kronander said the fiscal year began with “a favorable performance in both medical IT and cybersecurity,” with strong growth in North America and progress in shifting to subscription-based models for diagnostic imaging.

He noted that large healthcare contracts secured last year will begin deploying gradually, with financial effects still limited in fiscal 2026, but highlighted their importance for strengthening recurring revenue.

On cybersecurity, Kronander pointed to steady demand, supported by “security developments” and NATO’s decision to raise defense and security spending.

“We are well positioned to contribute solutions for secure communication and information sharing that make societies more resistant to cyberthreats,” he said, noting the company’s technology was deployed during the NATO summit in the Netherlands.

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