Sectra's year-end report 2024/2025: Reporting solid growth in a time of change

LINKÖPING, Sweden, June 5, 2025 /PRNewswire/ -- International medical imaging IT and cybersecurity company Sectra (STO: SECT B) is continuing to deliver results through high customer satisfaction, innovation and the ongoing transition to service deliveries. With significant advances in medical IT and cybersecurity, growing market shares and innovative new customer offerings, the company strengthened its position as a long-term healthcare and societal security partner. It is proposed that the Annual General Meeting (AGM) resolve on an ordinary dividend in line with the previous year, plus an extraordinary dividend.

2024/2025 fiscal year

• Contracted order bookings rose 39.9% to SEK 8,706.1 million (6,223.5), of which SEK 7,653.0 million (3,219.4) pertained to guaranteed order bookings.
• Net sales increased 9.3% to SEK 3,239.8 million (2,963.6). Based on unadjusted exchange rates, the increase was 10.2%. Recurring revenue accounted for SEK 2,067.4 million (1,724.9) of net sales, up 19.9%. Based on unadjusted exchange rates, the increase was 20.7%. Cloud recurring revenue (CRR) increased 48.9% to SEK 591.1 million (396.9).
• Operating profit amounted to SEK 723.0 million, of which SEK 110.0 million pertained to positive effects from a patent settlement during the third quarter. In terms of comparable outcomes for underlying operations, operating profit increased 18.4% to SEK 613.0 million (517.8), corresponding to an operating margin of 18.9% (17.5). Based on unadjusted exchange rates, operating profit increased 20.3%.
• Profit for the period amounted to SEK 563.4 million (428.4).
• Cash flow from operations amounted to SEK 922.4 million (326.3).
• The Board and CEO propose that the 2025 AGM resolve on an ordinary dividend of SEK 1.10 (1.10) per share and an extraordinary dividend of SEK 1.00 per share, considering the year's cash flow and Sectra's financial position.

Fourth quarter: February–April 2025

• Contracted order bookings rose 223.4% to SEK 2,900.3 million (896.9), of which SEK 2,382.1 million (762.3) pertained to guaranteed order bookings. Of the guaranteed order bookings, 7% were recognized as revenue during the quarter and a further 15–25% are deemed to pertain to revenue within 12 months after the end of the quarter.
• Net sales increased 1.8% to SEK 914.1 million (898.1). Based on unadjusted exchange rates, the increase was 4.9%. Recurring revenue accounted for SEK 574.6 million (463.5) of net sales, up 24.0%. Based on unadjusted exchange rates, the increase was 27.9%. Cloud recurring revenue (CRR) increased 61.8% to SEK 184.1 million (113.8).
• Operating profit increased 0.8% to SEK 198.9 million (197.4), corresponding to an operating margin of 21.8% (22.0). Based on unadjusted exchange rates, operating profit increased 6.5%.
• Profit for the period amounted to SEK 131.2 million (158.5).
• Cash flow from operations amounted to SEK 222.3 million (133.7).

Comments from Torbjörn Kronander, President and CEO of Sectra AB
– "Our long-term efforts to create value for healthcare and society, and ultimately our shareholders, are continuing to deliver good results in 2024/2025. We took major steps forward in our core areas—medical IT and cybersecurity—where we deliver solutions that improve people's quality of life and safety all over the world.

– The past fiscal year can be summarized as follows: record-breaking order bookings, a continued positive trend for secure communications and progress in the transition to selling medical diagnostic imaging as a service. We have not yet fully completed this transition. Our extensive deliveries will take many years to complete and have not yet started to generate meaningful revenue. Nor have we had the same support from currency effects as before. Nonetheless, profit for the year was good. The most important thing to note is that our customers remain satisfied. In our medical operations, we broke our previous record, winning more Best in KLAS awards than ever before. This provides external proof that we have the highest levels of customer satisfaction.

– In the short term, we expect that decreased license sales in Imaging IT Solutions will have a dampening effect on sales growth. Major customers will also go live in the coming year, which will place additional pressure on profitability before they start generating revenue. In the long term, however, the transition will be highly beneficial—for us and for our customers.

– Our success is built on the dedication and expertise of our employees. I would like to extend my sincere thanks to all of our employees. Their passion and knowledge are what drives Sectra's continued development. I would also like to thank our customers and partners for the trust they place in us, and our shareholders for their long-term support. Together we are making a difference in society."

Read the attached year-end report for further CEO comments and information. 

Presentation of the financial report 
Torbjörn Kronander, President and CEO of Sectra AB, and Jessica Holmquist, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.

Time: June 5, 2025, at 10:00 a.m. (CEST)

Follow live or listen to the recording afterward: https://investor.sectra.com/q4report2425

This information constitutes information that Sectra AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:15 a.m. (CEST) on June 5, 2025.

For further information, please contact:
Dr. Torbjörn Kronander, President and CEO, Sectra AB, +46 (0) 705 23 52 27

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