FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2025
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Sectra’s nine-month interim report 2024/2025
1 (30)
REPORT PRESENTATION
March 14, 2025 at 10:00 a.m. (CET)
Follow online:
https://investor.sectra.com/q3report2425
Nine-month report 2024/2025
The industry’s most satisfied customers for the
twelfth consecutive year
Sectra’s enterprise imaging module for radiology is ranked number one by users
around the world. We also have the most satisfied customers in digital pathology.
Our commitment to customer satisfaction is the foundation of our success in all
operating areas. The operating profit trend for the Group is positive despite the
ongoing transition to service sales. A settlement was also reached in the third
quarter regarding Sectra’s patented technology for secure communication, which
had a positive non-recurring effect on the Group’s financial outcomes.
FINANCIAL OUTCOME IN BRIEF
Figures in parentheses pertain to the corresponding period/quarter in the preceding fiscal year.
Third quarter: November 2024–January 2025
Contracted order bookings decreased 47.8% to SEK 967.6 million (1,853.6), of which SEK 710.8 million (1,652.5) pertained to
guaranteed order bookings. Of the guaranteed order bookings, 19% were recognized as revenue during the quarter and a further
34–44% are deemed to pertain to revenue within 12 months after the end of the quarter.
Net sales increased 22.2% to SEK 848.4 million (694.0). Based on unadjusted exchange rates, the increase was 18.8%.
Recurring revenue accounted for SEK 525.8 million (434.7) of net sales, up 21.0%. Based on unadjusted exchange rates, the
increase was 17.3%. Cloud recurring revenue (CRR) increased 57.8% to SEK 162.8 million (103.2).
Operating profit amounted to SEK 314.7 million, of which SEK 110.0 million pertained to positive effects from a patent
settlement. In terms of comparable outcomes for underlying operations, operating profit increased 175.1% to SEK 204.7 million
(74.4), corresponding to an operating margin of 24.1% (10.7). Based on unadjusted exchange rates, operating profit increased
164.9%.
Profit for the period amounted to SEK 264.0 million (57.8).
Cash flow from operations amounted to SEK 580.7 million (233.2).
Nine-month period: May 2024–January 2025
Contracted order bookings rose 9.0% to SEK 5,805.7 million (5,326.5), of which SEK 5,270.9 million (2,457.0) pertained to
guaranteed order bookings.
Net sales increased 12.6% to SEK 2,325.7 million (2,065.5). Based on unadjusted exchange rates, the increase was 12.5%.
Recurring revenue accounted for SEK 1,492.8 million (1,261.5) of net sales, up 18.3%. Based on unadjusted exchange rates, the
increase was 18.1%. Cloud recurring revenue (CRR) increased 43.8% to SEK 407.0 million (283.1).
Operating profit amounted to SEK 524.1 million, including the positive effects of a patent settlement during the third quarter. In
terms of comparable outcomes for underlying operations, operating profit increased 29.2% to SEK 414.1 million (320.4),
corresponding to an operating margin of 17.8% (15.5). Based on unadjusted exchange rates, operating profit increased 28.7%.
Profit for the period amounted to SEK 432.2 million (269.9).
Cash flow from operations amounted to SEK 700.0 million (192.6).
Key figures Quarter Period 12 months
SEK million Q3 Q3 Δ Q1–3 Q1–3 Δ R12 Full-year Δ
24/25 23/24 % 24/25 23/24 % 24/25 23/24 %
Contracted order bookings 967.6 1,853.6 -47.8 5,805.7 5,326.5 9.0 6,702.7 6,223.5 7.7
of which guaranteed order bookings 710.8 1,652.5 -57.0 5,270.9 2,457.0 114.5 6,033.3 3,219.4 87.4
Net sales 848.4 694.0 22.2 2,325.7 2,065.5 12.6 3,223.8 2,963.6 8.8
of which recurring revenue 525.8 434.7 21.0 1,492.8 1,261.5 18.3 1,956.2 1,724.9 13.4
of which cloud recurring revenue (CRR) 162.8 103.2 57.8 407.0 283.1 43.8 520.8 396.9 31.2
Operating profit 314.7 74.4 323.0 524.1 320.4 63.6 721.5 517.8 39.3
excluding patent settlement 204.7 74.4 175.1 414.1 320.4 29.2 611.5 517.8 18.1
Operating margin, % 37.1 10.7 n/a 22.5 15.5 n/a 22.4 17.5 n/a
excluding patent settlement, % 24.1 10.7 n/a 17.8 15.5 n/a 19.0 17.5 n/a
Profit for the period 264.0 57.8 356.7 432.2 269.9 60.1 590.7 428.4 37.9
Churn, % n/a n/a n/a n/a n/a n/a 0.6 0.4 n/a
Earnings per share, SEK 1 1.37 0.30 356.7 2.24 1.40 60.0 3.07 2.22 38.3
Cash flow from operations 580.7 233.2 149.0 700.0 192.6 263.4 833.8 326.3 155.5
Average no. of employees 1,255 1,150 9.1 1,234 1,130 9.2 1,218 1,140 6.8
1 Before and after dilution
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Sectra’s nine-month interim report 2024/2025
2 (30)
Torbjörn Kronander, President and CEO
CEO’S COMMENTS
Sectra’s radiology system once again received a top ranking in customer
satisfaction in most of the countries where we operate. In the US Large
PACS category, we had the most satisfied customers for the twelfth
consecutive year. In 2024, we also topped the digital pathology category,
which is currently only measured in Europe. Customer satisfaction is about
much more than the products and services we offer—not least, it is about
our corporate culture. We all realize how essential effective IT support is
for the important work our customers do for patients and society. This
insight inspires us to care a little more. Our consistent top ranking in
customer satisfaction, even during our comprehensive transition to
delivering medical diagnostic imaging as a service via the cloud, is proof
of the strength of Sectra’s culture. Satisfied customers and good cost
control lead to a positive long-term performance.
Our major business areas, Imaging IT Solutions and Secure Communications, both reported positive financial developments.
Especially Secure Communications continued to deliver a strong performance, and the business area is now the fastest-growing part
of Sectra. Earnings for the most recent quarter also include a large positive non-recurring effect from a patent settlement for secure
communications, which reinforces the importance of protecting our technology.
Our success in medicine continues in North America. According to studies from the analysis company KLAS Research, Sectra was
the most chosen enterprise imaging (PACS) vendor by US healthcare providers in the past two years. Sectra was considered as a
choice in half of the approximately 80 PACS procurements that KLAS has reviewed. Out of these, we were chosen as a supplier in
approximately half—in other words, we are currently winning more than 25% of all procurements. 1 This is significantly more than
any other supplier. The US and Canada are also the countries where we have made the most progress when it comes to the ongoing
transition to cloud-based services—nearly all our new sales in the US and Canada are currently cloud-based SaaS deliveries. The
transition to service sales has dampened our growth for several years now, but we expect to see the positive effects outweigh the
negative ones within one to two years. We are also seeing this change in other markets, although not as strongly as in North America.
The transition that we and our customers are now going through is a difficult but positive one. We have many deployments of cloud-
based services ongoing. As we transition from selling licenses to services, it is important to remember that the change to the business
model will lead to a delay in revenue and earnings, while costs continue to be incurred at the beginning of projects. Revenue comes
later than in the license model, but continues for much longer. With the very large projects we are carrying out, these negative effects
will continue into the next fiscal year, putting pressure on our operating margin and sales before our new major customers start using
our services in the volumes planned. While the change is having a short-term dampening effect on our financial performance, it will
be highly beneficial in the long term—for us and for our customers.
The extensive investments we are making in innovations and business development are creating value for our customers and building
a stronger Sectra for the future. Healthcare and data security are both areas that are expected to grow for a long time to come, and that
are relatively unaffected by the economic climate. With satisfied, and therefore loyal, customers combined with a strong brand in
growing markets, we have every reason to remain optimistic about the future.
1 Data comes from the KLAS Research database and refer to the period February 2023 to February 2025. https://klasresearch.com/compare/pacs/7
Cloud services +43.8% recurring revenue over the comparative period
Churn 0.6% of recurring revenue, R12
as-a-service
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Sectra’s nine-month interim report 2024/2025
3 (30)
Continued global success in customer satisfaction–winner of
eight awards in radiology and digital pathology
Sectra is ranked #1 in customer satisfaction by users around the world. This is confirmed by the eight Best in KLAS awards that
the radiology (Sectra PACS) and pathology modules in our enterprise imaging solution won for customer satisfaction. This marks
the twelfth consecutive year that Sectra PACS has ranked highest in customer satisfaction in the US, the sixth consecutive year
in Canada and the second in the categories introduced in 2024: Northern Europe and Southern Europe. Sectra also won for the
first time in Middle East/Africa and in DACH (Germany, Austria and Switzerland) as well as in the Pathology Solution Global
category, which, to start, is only being awarded in Europe. The American digital pathology markets are still too small to provide
reasonable statistical significance. These prestigious distinctions are handed out by the US analysis company KLAS Research,
which conducts annual customer satisfaction surveys for healthcare IT systems.
Customers on Sectra
“With Sectra PACS, there was an immediate improvement in our return on investment and efficiency. We even improved things
like the amount of time it takes to process the studies from the hardware vendors. There are so many little things. Sectra has a
great dashboard to show how things have improved. Sectra PACS is a quantum leap above other PACS products, and everyone
else needs to catch up.”
Comment to KLAS Research in March 2024 about Sectra’s radiology module.
“For fixes, the way Sectra set us up is they have customer success management. It is like a pod, so we have an account executive
and a customer success manager. They have no more than a handful of different accounts per pod, and they have engineers in
each pod, so when we call and have a problem, we get that engineer who knows us. They are one of our team members, so we
don't have to reexplain why our PACS is set up this way or why we have this.”
Comment to KLAS Research in December 2024 about the new way of working in Sectra’s support organization.
“Sectra PACS is part of our long-term plans. It has been working very well so far. We have not only deunified radiology but also
decommissioned another product for mammography and brought that on to Sectra PACS. And everyone has been happy with that
standardization process. Sectra has been a very good partner with us in terms of working with the technology and mapping
everything else. So there is no reason for us to move away from Sectra. I love Sectra PACS. The radiologists and everyone love
it a lot. They wanted me to get a research instance. Now, they want me to get another instance. The ease of use is perfect.”
Comment to KLAS Research in December 2024 about long-term plans and standardized processes.
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Sectra’s nine-month interim report 2024/2025
4 (30)
Diagrams and amounts in the financial report Bars show the outcome per quarter and lines show the outcome for the rolling 12-month period (R12). Amounts are restated in SEK million unless otherwise indicated. Amounts in parentheses pertain to the corresponding quarter/period in the preceding fiscal year.
010203040Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q322/23 23/24 24/25%050100150200Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q322/23 23/24 24/25%
OPERATIONAL TARGETS AND FINANCIAL GOALS
Sectra’s overall operational target is to create significant value for its customers. Customers should be so satisfied with their
experience that they remain for a long time, expand their use of our solutions and recommend Sectra to others. Delivering customer
value is also the Group’s most important sustainability target since our customers’ work to treat patients and increase cybersecurity
is essential for functioning societies.
Customer satisfaction requires satisfied and dedicated employees. Employees who are motivated, understand their customers, feel
good and are satisfied in their jobs will also increasingly develop new, creative solutions that can further increase the value we
provide for Sectra’s customers. Operating in markets that are growing, combined with satisfied customers and employees, provides
a long-term sound financial performance.
Sectra has three Group-wide financial goals. Stability and profitability are considered fundamental goals. Once these goals have
been met, the focus shifts to earnings growth per share, which in practice is our primary financial goal. All result indicators currently
exceed the target levels by a comfortable margin despite the effects of changes in the business model. The financial goals are (in
order of priority):
1. Stability1:
Equity/assets ratio ≥30%
2. Profitability:
Operating margin ≥15%
3. Earnings growth 2:
Growth for operating profit/share
over a five-year period ≥50%
The equity/assets ratio exceeded the
target due to a strong financial position.
The patent settlement did not have any
material effect on the outcome.
1 The line in the diagram shows the
outcome at the end of the periods,
including the patent settlement.
The operating margin was impacted by the
ongoing transformation of the business
model, with a large share of growth attri-
butable to entirely new customers. This
entails an initial increase in costs before
these customers reach the expected volu-
mes. Including the patent settlement, the
operating margin was 22.4%.
The historical trend shows that sales
have grown faster than costs and that
profit growth remains well above the
established goal. Including the patent
settlement, growth was 159.7% over the
last five years.
2 The line in the diagram shows the out-
come for growth over a five-year period
High level of customer satisfaction High level of quality and product safety
Dedicated employees who are satisfied, feel good, improve as individuals
and do their best to meet or exceed customer expectations
Outcome of operational targets
19.0% 121.0%
0255075100Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q322/23 23/24 24/25%46.7%
Excluding patent settlement Including patent settlement Goal
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Sectra’s nine-month interim report 2024/2025
5 (30)
EVENTS
Third quarter
Imaging IT Solutions
Helse Nord RHF in Norway expanded its use of Sectra’s enterprise imaging solution through an additional
license for digital pathology. Three of four regions in Norway have thus now chosen digital pathology from
Sectra, all of whom had already been utilizing our module for radiology.
Region Västra Götaland in Sweden is expanding its collaboration with Sectra through an order for digital
pathology. The customer has been using Sectra’s medical imaging solution in radiology, mammography and
clinical physiology for more than 20 years.
A top-ranked US healthcare system that has already been using Sectra’s enterprise imaging solution for several
years is expanding its use to include digital pathology to strengthen collaboration and improve cancer care.
Business Innovation
The University of Hartford in the US chose to use Sectra’s service for medical education in order to elevate the
educational experience for their radiographer students.
Secure Communications
Secure Communications has been involved in a patent dispute in the US and the parties have now reached a
settlement. See page 12. The settlement is a non-recurring business transaction and had a positive non-recurring
effect on Sectra’s financial outcome. The impact on operating profit amounts to SEK 110 million and has been
recognized in its entirety in the third quarter.2
A defense customer in Europe signed a contract with Sectra covering the Sectra Tiger/S mobile encryption
system, including associated infrastructure, service and support.
Swedish authorities placed orders for the further development of existing systems for secure communication as
well as new deliveries. The total order is valued at approximately SEK 50 million.
Sectra delivered a solution to the Swedish Prison and Probation Service for secure access to information. The
solution will streamline the day-to-day work of the Prison and Probation Service’s employees and provide
inmates with controlled, secure access to digital services and information.
Group
Issue of 1,000,000 Class C shares, all of which were repurchased and subsequently converted to Class B shares
to secure the company’s obligations under its new long-term incentive program.
After the end of the reporting period
Sectra won eight Best in KLAS awards for having the highest customer satisfaction for its radiology and
pathology modules for enterprise imaging. Read more on page 3.
Sectra won several new customer contracts in the US, including contracts with one of the world’s premier cancer
centers, and a large healthcare system network, both of which have chosen to purchase Sectra One Cloud. These
successes contributed to the contracted order bookings in the US reaching SEK 868 million in February, of which
SEK 780 million pertained to guaranteed order bookings.
Sectra and Siemens Healthineers AG began a partnership to improve radiology work and thereby patient care.
The goal is for radiologists to access and post-process images generated by photon-counting computed
tomography (PCCT images) from Siemens Healthineers in Sectra’s radiology module. Such integration will
allow Sectra’s users to perform diagnostic assessments of this type of image without needing to move to a
separate workstation, making the workflow much more efficient.
2 Refer to Note 1 Accounting policies on page 20.
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Sectra’s nine-month interim report 2024/2025
6 (30)
02 0004 0006 0008 00001 0002 0003 0004 0005 000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q322/23 23/24 24/25R12QuarterQuarterR12
SECTRA’S MARKETS
Sectra plays a key role in meeting the need for medical imaging IT and cybersecurity. We help solve major social problems in
changing markets, where scope for expansion remains. The global trends of an aging population and increased digitization mean that
these markets are expected to continue to grow regardless of the economic climate.
Our customers operate in some of society’s most critical functions, which means that it is important that Sectra’s brand is associated
with reliability, trustworthiness and stability. Our job is to help customers become more efficient and give them the tools needed to
make people’s lives healthier, safer and more secure. In line with Sectra’s vision, this is how the company creates value for its
customers, shareholders and society as a whole.
IT support for more efficient care and medical education
Aging populations, combined with a decline in the proportion of people of working age, are leading to a shortage of resources and a
growing workload in healthcare. In order to maintain high quality of care with fewer people taking care of more patients, healthcare
must become more efficient. The growing population of senior citizens is also shining a spotlight on diseases affecting the elderly.
Health problems affecting the elderly primarily include cancer diseases and problems with the cardiovascular, nervous, and skeletal
systems as well as vision and hearing. All of these areas, which are among the most costly and resource-intensive areas in healthcare,
are dependent on medical diagnostic imaging.
Healthcare providers across the globe use Sectra’s expertise and solutions in medical imaging IT not only to increase productivity
and coordinate their resources but also to improve efficiency in orthopaedic surgery through better planning and follow-up. Sectra
also helps to raise the quality of medical education by providing solutions where the user can interact with medical images and share
educational materials. IT support for genomics is yet another area that Sectra is entering through partnerships with customers in the
US and Sweden. The market for genomics is growing as a result of the rapid increase in the number of clinical DNA sequencings
carried out during diagnostics, and needs to be managed efficiently. We also have synergies among our operating areas. Healthcare
is increasingly becoming a target for cybercrime, resulting in, for example, the authorities in the US issuing a particular warning to
healthcare providers. Sectra’s experience and brand when it comes to security gives us advantages in the field of medicine as well.
We enable our customers to take care of more patients and save more lives at a long-term sustainable cost. This work is carried out
in our Imaging IT Solutions and Business Innovation operating areas.
Cybersecurity for a more stable and safer society
The ability to safely and efficiently handle and transmit sensitive information is central to the stability and security of society,
particularly when it comes to critical social functions and critical infrastructure. As digitization increases, the players in these areas
have a major need for products and services that increase cybersecurity. Sectra has extensive experience of protecting society’s most
critical communications and securing society’s critical infrastructure against cyberattacks. We are a strong brand in the niche markets
of encryption and secure mobile communications. IT developments in society, political instability in the world, and the growth of
cybercrime are creating a greater need for Sectra’s expertise and product offerings.
We help customers to provide increased security, thereby contributing to a more stable and safer society. This work is carried out in
the Secure Communications operating area. The activities conducted in the operating area are part of Sweden’s collective national
capability within crypto—a strategic materiel area identified by government authorities as an essential security interest for which
national availability, skills and capacity need to be secured over time.
COMMENTS ON THE GROUP’S FINANCIAL OUTCOME
Order bookings
Contracted order bookings for the period rose 9.0% to SEK 5,805.7 million
(5,326.5), of which SEK 967.6 million (1,853.6) pertained to the third quarter.
A total of SEK 5,270.9 million (2,457.0) was guaranteed order bookings, of
which SEK 710.8 million (1,652.5) pertained to the third quarter. The ratio of
contracted order bookings to net sales for the latest rolling 12-month period
totaled 2.1, compared with 2.1 at the end of the previous fiscal year.
Order bookings include comprehensive, long-term customer contracts. During
the comparative quarter, a comprehensive ten-year agreement was signed with
NHS National Services Scotland (NSS). During the second quarter of the
current fiscal year, a contract was signed with the healthcare provider MSSS
Québec in Canada with a contracted order value of SEK 3.1 billion. Orders of
this size are not secured every quarter and lead to significant variations in order
bookings between individual quarters and periods.
Contracted order bookings, SEK million
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Sectra’s nine-month interim report 2024/2025
7 (30)
05001 0001 5002 0002 5003 0003 50002004006008001 000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q322/23 23/24 24/25R12QuarterOther recuring revenueCloud recurring revenueNon-recurring revenueSales02004006008001 000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q322/23 23/24 24/25USSwedenUKRest of EuropeRest of WorldNetherlands
Net sales and recurring revenue
The Group’s net sales rose 12.6% to SEK 2,325.7 million (2,065.5), of which SEK 848.4 million (694.0) pertained to the third quarter.
Based on unadjusted exchange rates, consolidated sales increased 12.5% compared with the nine-month period in the previous fiscal
year.
The ongoing transition to selling products and software as services, of which cloud deliveries account for a quickly growing share,
contributed to an increase in recurring revenue. SEK 1,492.8 million (1,261.5) of sales pertained to recurring revenue, of which SEK
525.8 million (434.7) pertained to the third quarter. This represents an increase of 18.3% compared with the nine-month period in the
previous fiscal year and an increase of 18.1% based on unchanged exchange rates. Lost recurring revenue (recurring revenue churn)
for the last 12-month period was 0.6%. CRR for the nine-month period rose 43.8% to SEK 407.0 million (283.1), of which SEK 162.8
million (103.2) pertained to the third quarter. Non-recurring revenue rose 3.6% to SEK 832.9 million (804.0), of which SEK 322.6
million (259.3) pertained to the third quarter.
All geographic markets contributed to the Group’s sales growth. The operations in Sweden reported the single largest sale increase
over the comparative period, primarily due to the positive trend for the Secure Communications operating area. More than 70% of
the Group’s sales are carried out in foreign currency, primarily EUR, GBP and USD, which entails a relatively large sensitivity to
currency fluctuations.
Revenue (per quarter) and sales (R12), SEK million Sales (R12) by geographic market, SEK million
Sales trend per geographic market, SEK million Compared with the corresponding period of the preceding fiscal year
Sales trend per operating area, SEK million Compared with the corresponding period of the preceding fiscal year
Total Increase Decrease
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Sectra’s nine-month interim report 2024/2025
8 (30)
0200400600800Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q322/23 23/24 24/25
Patent settlementQuarter excl. patent settlementR12 excl. patent settlementR12 incl. patent settlement-2000200400600800Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q322/23 23/24 24/25
Result
The Group’s operating profit amounted to SEK 524.1 million, of which SEK 314.7 million pertained to the third quarter. The outcome
includes SEK 110.0 million for the effects of a patent settlement. In terms of comparable outcomes—that is, excluding the patent
settlement—operating profit for the period increased by 29.2 percent to SEK 414.1 million (320.4), of which SEK 204.7 million
(74.4) relates to the third quarter. Based on unadjusted exchange rates, the increase from the nine-month period in the previous fiscal
year was 28.7%. In terms of comparable outcomes, the Group’s operating margin was 17.8% (15.5) for the nine-month period. Secure
Communications and Imaging IT Solutions reported increased operating profit, while the outcome for Business Innovation was
impacted by the ongoing transformation to a new business model.
The Group’s financial items amounted to SEK 20.2 million (20.3), of which SEK 17.8 million (-1.5) pertained to the third quarter.
Currency fluctuations had an impact of SEK 0.1 million (-2.0) on financial items. Sectra does not hedge its operations, and currency
fluctuations therefore have an immediate impact on profit or loss or on comprehensive income.
Profit after financial items amounted to SEK 544.3 million (340.7), of which SEK 332.5 million (72.9) pertained to the third quarter.
This outcome corresponds to a profit margin of 23.4% (16.5) for the nine-month period and 39.2% (10.5) for the third quarter.
Earnings per share before and after dilution totaled SEK 2.24 (1.40) for the period, of which SEK 1.37 (0.30) pertained to the third
quarter.
Financial position and cash flow
The Group’s cash and cash equivalents at the end of the reporting period
amounted to SEK 1,160.7 million (688.8).
The Group’s debt/equity ratio was 0.05 (0.02) as of the balance-sheet date.
Interest-bearing lease liabilities amounted to SEK 88.5 million (24.3). The
change was due to the fact that several new leases were signed during the period
as a result of Sectra’s growth.
Cash flow from operations amounted to SEK 700.0 million (192.6) for the
period, of which SEK 580.7 million (233.2) was attributable to the third
quarter. The changes were mainly due to an increase in advances from
customers and the patent settlement. Cash flow per share amounted to SEK
3.63 (1.00), of which SEK 3.01 (1.21) pertained to the third quarter.
Operating profit trend per operating area, SEK million
Compared with the corresponding period of the preceding fiscal year.
Operating profit for the Group,
SEK million
Total Increase Decrease
Quarterly cash flow from operations
for the Group, SEK million
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Sectra’s nine-month interim report 2024/2025
9 (30)
-100-50050100150200250-20-1001020304050Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q322/23 23/24 24/25At end of periodQuarterCapitalization, quarterDepreciation/amortization, quarterCarrying amount at end of period
Cash flow from investing activities amounted to SEK -112.3 million (-107.3),
of which SEK -42.0 million (-30.8) was attributable to the third quarter. Refer
to the additional information about investments below.
The Group’s total cash flow for the period amounted to SEK 359.6 million
(-136.9). This result includes a transfer of SEK 211.9 million (211.9) to the
shareholders through Sectra’s 2024 share redemption program.
Investments and depreciation/amortization
Investments amounted to SEK 112.3 million (227.3), of which SEK 42.0
million (30.8) pertained to the third quarter. The outcome for the comparative
period includes SEK 144.6 million for the acquisition of two properties.
Capitalized work for own use amounted to SEK 55.2 million (55.2), of which
SEK 22.9 million (19.3) pertained to the third quarter. Capitalization includes
the development of cloud-based services for medical diagnostics.
Total depreciation and amortization for the period was SEK 82.7 million (72.9),
of which the third quarter accounted for SEK 29.3 million (24.7). Of the total
depreciation/amortization for the period, SEK 34.7 million (28.9) was
attributable to capitalized development expenditures, of which SEK 12.3
million (10.4) pertained to the third quarter. At the end of the period, capitalized
development expenditures totaled SEK 224.2 million (197.6).
Seasonal variations
Sectra has historically experienced major seasonal variations, since individual
projects can be very large relative to Sectra’s sales. This applies for both
medical systems and encryption systems. The beginning of the fiscal year is
usually weaker since few customers want to deploy new systems during the
summer. The variations in order volumes between individual quarters are
significant since certain contracts are very large and have long terms.
As Sectra transitions to selling products as a service, this variation is expected
to gradually decrease over the next several years since revenue will be spread
more evenly over time. On the other hand, individual orders are sometimes very
large, leading instead to a larger variation in order bookings than before.
Bearing this in mind, it remains important to look more at long-term trends
rather than at the outcome for an individual quarter when assessing Sectra’s
performance.
For further information about Sectra’s seasonal patterns, refer to page 70 in
Sectra’s Annual and Sustainability Report for the 2023/2024 fiscal year.
Capitalized development
expenditures, SEK million
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Sectra’s nine-month interim report 2024/2025
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05001 0001 5002 0002 5003 000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q322/23 23/24 24/25
OPERATING AREA IMAGING IT SOLUTIONS
Quarter Period 12 months
Q3 Q3 Δ Q1–3 Q1–3 Δ R12 Full-year Δ
24/25 23/24 % 24/25 23/24 % 24/25 23/24 %
Sales, SEK million 719.3 601.3 19.6 1,984.9 1,810.9 9.6 2,725.6 2,551.6 6.8
of which external recurring revenue 490.3 405.1 21.0 1,386.8 1,176.5 17.9 1,819.6 1,609.3 13.1
of which cloud recurring revenue 158.1 97.9 61.5 392.3 270.1 45.2 500.5 378.3 32.3
Operating profit, SEK million 181.2 66.8 171.3 371.6 309.5 20.1 562.0 499.9 12.4
Operating margin, % 25.2 11.1 n/a 18.7 17.1 n/a 20.6 19.6 n/a
Order bookings for Imaging IT Solutions in the nine-month period surpassed
previous record levels thanks to Sectra’s largest and most extensive customer
contract to date—MSSS Québec in Canada, signed during the second quarter.
This is just one of several major orders from customers who have chosen to use
Sectra One Cloud in the last few years, including contracts with one of the
largest healthcare providers in the US and with the public healthcare provider
in Scotland. Additional customers chose Sectra One Cloud after the balance-
sheet date, including a prestigious cancer center, and a healthcare system
network in the US.
The implementation of services and infrastructure at new major customers
initially entails increased costs. Work to prepare for deliveries to customers is
ongoing and none of the major customers mentioned above are yet in full
production. Revenue is growing gradually as customers put the systems into
operation, but it could take several years for major customers to become fully
operational and reach planned volumes.
The share of recurring revenue amounts to nearly 70% of sales, primarily due
to customers’ increased use of Sectra’s services for medical imaging. The large
share of recurring revenue has promoted stability during the ongoing
transformation to service sales and cloud solutions. The accelerating transition
to cloud services is clear from Sectra’s growth in cloud recurring revenue. The
markets in the US and Canada are where Sectra has made the most progress in
the transition to the new business model, with all new customer sales now
taking place as cloud-based services. Additionally, all existing customers in
Canada have now chosen to use Sectra One.
Growth in recurring revenue, combined with higher non-recurring revenue
from license sales in the third quarter, led to a stronger financial outcome than
in the comparative quarter. However, non-recurring revenue for the nine-month
period was lower than in the comparative period, primarily due to new
customers purchasing services instead of traditional software licenses.
Profitability continued to be impacted by ongoing initiatives, the most
extensive of which was the transition to becoming a service provider. While
the change in the business model had dampening effects on financial outcomes,
this was partially offset by the strong underlying growth in Sectra’s operations,
in combination with the fact that not all transactions pertain to services yet. The
transition to selling cloud services means that a growing share of revenue and
earnings are reported over time and therefore arise later than with traditional
license sales. The transition will be favorable over the long term, especially
because customers are satisfied and stay with us for a long time.
Trend, SEK million
Sales, R12 Operating profit, R12
Cloud recurring revenue
+45%
over the
comparative period
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0100200300400500600Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q322/23 23/24 24/25
OPERATING AREA BUSINESS INNOVATION
Quarter Period 12 months
Q3 Q3 Δ Q1–3 Q1–3 Δ R12
Full-
year Δ
24/25 23/24 % 24/25 23/24 % 24/25 23/24 %
Sales, SEK million 24.0 22.9 4.8 60.4 64.1 -5.8 86.2 89.9 -4.1
of which external recurring revenue 5.5 5.8 -5.2 16.8 14.1 19.1 22.6 19.9 13.6
of which cloud recurring revenue 4.7 5.4 -13.0 14.7 13.0 13.1 20.3 18.6 9.1
Operating profit/loss, SEK million 2.3 4.0 -42.5 0.5 8.5 -94.1 9.3 17.3 -46.2
Operating margin, % 9.6 17.5 n/a 0.8 13.3 n/a 10.8 19.2 n/a
Business Innovation comprises the Genomics IT, Medical Education and
Orthopaedics business units. We also report the expenses for medical research
activities in Business Innovation, which includes initiatives in the field of AI
for medical applications. Sectra’s research activities linked to secure
communications are organized and reported in the Secure Communications
operating area.
Recurring revenue grew compared with the nine-month period in the previous
fiscal year, but did not fully compensate for lower non-recurring revenue than
in the comparative period. Recurring revenue primarily increased in the
medical education business unit. Meanwhile, sales of hardware related to
medical education decreased. However, the results may vary significantly
between quarters and periods. Subscription-based business models and grow-
ing volumes are expected to reduce quarterly variations over the longer term.
Trend, SEK million
Cloud recurring revenue
+13%
over the
comparative period
Sales, R12 Operating profit, R12
Better, more cost-efficient care to patients
Sectra offers orthopaedic and radiology services for image-based
planning and follow-up in orthopaedics. These services are
provided as part of Sectra’s enterprise imaging solution, Sectra
One. As more customers choose Sectra One, the services are
becoming more readily available, and several new customers have
chosen to use the orthopaedic services to save time and increase
patient value.
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-1000100200300400500600Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q322/23 23/24 24/25
OPERATING AREA SECURE COMMUNICATIONS
Quarter Period 12 months
Q3 Q3 Δ Q1–3 Q1–3 Δ R12 Full-year Δ
24/25 23/24 % 24/25 23/24 % 24/25 23/24 %
Sales, SEK million 116.4 83.6 39.2 314.2 222.9 41.0 458.7 367.4 24.9
of which external recurring revenue 29.9 23.5 27.2 88.5 70.4 25.7 113.0 94.9 19.1
Operating profit, SEK million 134.8 9.4 1,334.0 170.1 21.5 691.2 208.4 59.8 248.5
excl. patent settlement, SEK million 24.8 9.4 163.8 60.1 21.5 179.5 98.4 59.8 64.5
Operating margin, % 115.8 11.2 n/a 54.1 9.6 n/a 45.4 16.3 n/a
excl. patent settlement, % 21.3 11.2 n/a 19.1 9.6 n/a 21.5 16.3 n/a
Secure Communications is growing quickly and reporting a good performance
with increased volumes of product deliveries and development assignments
over the comparative period. Operating profit from operations continued to
trend in the right direction and made a larger contribution to the Group’s overall
financial goals than previously. The long-term trend is positive, although
outcomes can naturally vary greatly between quarters due to the nature of the
operations.
The financial outcomes include a settlement between Sectra and a US company
that was reached during the third quarter concerning Sectra’s patented
technology for secure communication. The settlement had a positive impact of
SEK 110 million on operating profit and the transaction has been recognized
in its entirety in the quarter. As a part of the settlement, Sectra has granted the
counterparty authorization to use a license for a US patent for mobile VPN
technology.
There continues to be considerable demand for cybersecurity for the defense
forces, authorities and critical infrastructure, and Sectra is well positioned with
offerings that meet customers’ stringent demands. The uncertain geopolitical
situation, with ongoing wars in Europe and further tensions worldwide,
continues to highlight the importance of defense capabilities and public
security. This, in turn, is placing greater demands on communication and
fueling the need for investments in high assurance products, encryption
development and cybersecurity.
Sectra’s ability to help customers both in Sweden and around Europe led to
stable order bookings during the nine-month period. Order bookings include
research assignments, customer-financed development and product sales as
well as support and service commitments. Customers extended and expanded
agreements during the third quarter, both for support of secure communications
and for security monitoring of critical infrastructure. Orders received also
include the further development and serial deliveries of Tiger/S and network
encryptors to existing customers. These include large orders placed by Swedish
authorities. During the last quarter, agreements were also signed with three new
customers in critical infrastructure for consulting and security monitoring.
The ongoing initiatives being carried out by the operations include technologies
and solutions that can further strengthen our customers’ operations and the civil
and military defense in different countries. These include initiatives to
supplement our offering within the highest levels of assurance with products
and services for a wider customer base, primarily within government
authorities.
Secure communication requires
more than advanced encryption
Research and a strong technological founda-
tion are central to meeting customer needs.
One of the areas we are focusing on is network
patterns and anonymizing communication.
Based on the knowledge gained from research,
communication can be made virtually invisible
in networks. This prevents traffic analysis of
communication metadata, which could
otherwise reveal a great deal even if the
communication itself is encrypted, such as
which communication nodes were used and
when as well as the intensity and type.
Sales, R12 Operating profit excl. patent settlement, R12 Operating profit incl. patent settlement, R12
Trend, SEK million
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OTHER OPERATIONS
Quarter Period 12 months
Q3 Q3 Δ Q1–3 Q1–3 Δ R12
Full-
year Δ
24/25 23/24 % 24/25 23/24 % 24/25 23/24 %
Sales, SEK million 59.2 44.1 34.2 160.2 121.5 31.9 203.6 164.9 23.5
Operating loss, SEK million -6.8 -5.9 -15.3 -23.9 -19.0 -25.8 -64.0 -59.1 -8.3
Operating margin, % neg neg n/a neg neg n/a neg neg n/a
Other Operations pertain to Sectra’s joint functions for administration, recruitment, Group finance, IT, regulatory affairs, people and
brand, and activities related to investors. This segment also includes property management. The change from the comparative period
mainly pertained to increased central management of costs distributed across the organization.
PARENT COMPANY
The Parent Company’s income statement and balance sheet are reported on page 19. The Parent Company Sectra AB includes the
research department for medical imaging IT, the Genomics IT business unit and the head office’s joint functions (see Other Operations
above).
2025 AGM AND NOMINATION COMMITTEE
The Board has decided to hold the AGM on September 9, 2025 in Linköping. The notice of the AGM is issued not earlier
than six weeks and not later than four weeks prior to the AGM. Shareholders are entitled to have a matter addressed by the
AGM. To ensure that the company has time to include matters in the notice, requests for matters to be addressed by the AGM
must be received by the company not later than seven weeks prior to the AGM.
A Nomination Committee was appointed in accordance with the instructions adopted at the 2020 AGM. If any of the largest
shareholders in terms of voting rights waived their right to appoint a member of the Nomination Committee, the next
shareholder in order of size was given the opportunity to appoint a member. The Nomination Committee comprises the
following members:
Torbjörn Kronander representing his own and related parties’ shareholdings
Patrik Jönsson representing SEB Investment Management
Mats Andersson representing Nordea Investment Funds
Jan-Olof Brüer in his role as Chairman of the Board and representing his own and related parties’ shareholdings
The Nomination Committee’s proposals will be presented in the notice of the AGM. Shareholders who wish to submit
proposals to the Nomination Committee may do so in writing by email: info.investor@sectra.com or by mail: Sectra AB,
Attn. Nomination Committee, Teknikringen 20, SE-583 30 Linköping, Sweden. In order for the Nomination Committee to
address a proposal, the proposal must arrive in ample time prior to the notice of the AGM.
THE SHARE
Share capital and number of shares
Sectra’s share capital on the balance-sheet date totaled SEK 39,024,179, distributed between 195,120,895 shares and 313,052,035
voting rights. The number of shares is distributed between 13,103,460 Class A shares and 182,017,435 Class B shares. Sectra’s
holding of treasury shares at the end of the period amounted to 2,453,406 Class B shares, corresponding to 1.3% of the share capital
and 0.8% of the voting rights in the company. For more information, refer to Note 3.
LTIP 2024—new share issue and repurchase of own shares
During the third quarter, the Board exercised the authority granted by the 2024 AGM and carried out a directed share issue of
1,000,000 Class C shares at a price corresponding to the quotient value, meaning SEK 0.20 per share and a total of SEK 200,000. The
purpose was to secure the obligations for a new performance-based incentive program (LTIP 2024). All Class C shares have been
repurchased at a price corresponding to the quotient value. These were then converted to Class B shares.
In accordance with the terms of LTIP 2024, a maximum of 780,000 Class B treasury shares may be allotted to participants in the
incentive program. The qualification period expires on April 30, 2029 and performance shares will be allotted by no later than August
31, 2029. In order to finance the costs of social security contributions related to the incentive program, a maximum of 220,000 Class
B shares may be transferred on Nasdaq Stockholm, including by way of a financial intermediary, at a price within the price range
registered at any given time.
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2024 share redemption program and help with Swedish tax return
During the second quarter, SEK 1.10 per share was distributed to the shareholders through a share redemption program. For more
information and help with Swedish tax returns, visit https://investor.sectra.com/redemption2024.
Authorization
In addition to the authorization described above, the 2024 AGM resolved to authorize the Board of Directors, during the period until
the 2025 AGM, to decide on new share issues of a maximum of 18,500,000 Class B shares and to decide on the acquisition and
divestment of the company’s treasury shares, with the condition that the Company’s holding of treasury shares at no point exceeds
10% of all the shares in the Company. The complete authorization is presented in the minutes from the AGM:
https://investor.com/agm2024. At the time of publication of this financial report, the Board had not utilized these authorizations.
RISKS AND UNCERTAINTIES
Through its operations, Sectra is exposed to such business risks as dependence on major customers and partners, the effect of currency
fluctuations on pricing in the markets in which the Group is active, and property and liability risks. Sectra is also exposed to various
types of financial risks such as currency, interest-rate, credit and liquidity risks. A detailed description of the risks and specific external
factors as well as Sectra’s strategies and tactics for minimizing risk exposure and limiting adverse effects are provided in the
Administration Report in Sectra’s Annual and Sustainability Report for the 2023/2024 fiscal year on pages 88–90 and in Note 29 on
pages 119–120. No significant events have occurred that would alter the conditions reported.
FOR FURTHER INFORMATION
Contact Sectra’s CEO Torbjörn Kronander, telephone +46 13 23 52 27 or email info.investor@sectra.se.
Presentation of the interim report
Time: March 14, 2025 at 10:00 a.m. (CET)
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. For information about participating online or to listen to the recording
afterwards, visit: https://investor.sectra.com/q3report2425.
Financial calendar, Capital Markets Day and AGM
Capital Markets Day March 27, 2025 – focus on Sectra’s operations within medical diagnostic IT
Year-end report June 5, 2025 at 08:15 a.m. (CEST)
Annual General Meeting September 9, 2025 at 3:30 p.m. (CEST)
For further information about IR events, visit https://investor.sectra.com/events-and-presentations/
ASSURANCE
The Board of Directors and the President of Sectra AB (publ) hereby assure that the interim report for the May 1, 2024–January 31,
2025 period provides a true and fair view of the Parent Company’s and Group’s operations, financial position and earnings and
describes the significant risks and uncertainties facing the Parent Company and other companies in the Group.
Linköping, date as indicated by our electronic signature
Torbjörn Kronander Jan-Olof Brüer Tomas Puusepp Birgitta Hagenfeldt
President, CEO and Board member Chairman Board member Board member
Ulrika Unell Anders Persson Fredrik Robertsson
Board member Board member Board member
Pontus Svärd Andreas Häll
Board member and employee representative Board member and employee representative
===== SIDA 15 =====
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AUDITOR’S REVIEW REPORT
Introduction
We have reviewed the condensed interim financial information for Sectra AB (publ) at January 31, 2025 and for the nine-month
period ended on that date. The Board of Directors and the President are responsible for the preparation of this interim report in
accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express an opinion on the interim financial
information based on our review.
Focus and scope of the review
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim
Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different
direction and is substantially more limited in scope than an audit conducted in accordance with International Standards on Auditing
and other generally accepted auditing practices.
The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant
matters that might be identified in an audit. Therefore, the opinion expressed on the basis of a review does not provide the same level
of assurance as an opinion expressed on the basis of an audit.
Opinion
Based on our review, nothing has come to our attention that causes us to believe that the interim report has not, in all material aspects,
been compiled for the Group in accordance with IAS 34 Interim Reporting and the Swedish Annual Accounts Act and for the Parent
Company, in accordance with the Swedish Annual Accounts Act.
Linköping, date as indicated by our electronic signature
Ernst & Young AB
Andreas Troberg
Authorized Public Accountant
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. (CET) on March 14, 2025.
Sectra AB (publ), Corporate Registration Number 556064-8304, https://sectra.com, email info@sectra.com
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GROUP
Condensed consolidated income statements
SEK thousand 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Net sales (Note 4) 848,400 694,041 2,325,736 2,065,505 3,223,838 2,963,607
Capitalized work for own use 22,916 19,282 55,215 55,226 71,563 71,574
Other operating income 1 202,580 630 211,827 4,136 213,079 5,388
Total income 1,073,896 713,953 2,592,778 2,124,867 3,508,480 3,040,569
Goods for resale -93,570 -101,662 -317,589 -300,729 -448,078 -431,218
Personnel costs -409,143 -362,580 -1,174,817 -1,035,708 -1,576,017 -1,436,908
Other external costs -227,238 -150,686 -493,558 -395,195 -648,862 -550,499
Depreciation/amortization and
impairment -29,257 -24,666 -82,745 -72,850 -114,029 -104,134
Total operating expenses -759,208 -639,594 -2,068,709 -1,804,482 -2,786,986 -2,522,759
Operating profit 314,688 74,359 524,069 320,385 721,494 517,810
Total financial items 17,818 -1,479 20,224 20,310 34,879 34,964
Profit after financial items 332,506 72,880 544,293 340,695 756,373 552,774
Taxes -68,496 -15,060 -112,124 -70,757 -165,753 -124,386
Profit for the period 264,010 57,820 432,169 269,937 590,620 428,388
Profit for the period attributable to:
Parent Company owners 264,010 57,820 432,169 269,937 590,620 428,388
Earnings per share
Before dilution, SEK 1.37 0.30 2.24 1.40 3.07 2.22
After dilution, SEK (Note 3) 1.37 0.30 2.24 1.40 3.07 2.22
1 The outcomes for 2024/2025 include the patent settlement of SEK 195 million.
Consolidated statement of comprehensive income
SEK thousand 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Profit for the period 264,010 57,820 432,169 269,937 590,620 428,388
Items that may be reversed in profit or
loss
Translation differences 4,753 -17,945 -3,992 11,758 12,249 27,999
Total other comprehensive income for
the period
4,753 -17,945 -3,992 11,758 12,249 27,999
Total comprehensive income for the
period
268,763 39,875 428,177 281,695 602,869 456,387
Comprehensive income for the period
attributable to:
Parent Company owners 268,763 39,875 428,177 281,695 602,869 456,387
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Condensed consolidated balance sheets
SEK thousand Jan 31,
2025
Jan 31,
2024
Apr 30,
2024
Assets
Intangible assets and goodwill 280,387 261,820 262,330
Tangible assets 224,481 228,658 227,040
Right-of-use assets 110,736 27,849 35,241
Financial assets 199,794 138,918 155,189
Deferred tax assets 9,270 6,849 8,990
Total fixed assets 824,668 664,094 688,790
Accounts receivable 573,858 493,648 571,661
Other current assets 131,126 73,678 60,218
Prepaid expenses and accrued income 1,192,492 899,383 1,085,629
Cash and bank balances 1,160,698 688,775 804,640
Total current assets 3,058,174 2,155,484 2,522,148
Total assets 3,882,842 2,819,578 3,210,938
Equity and liabilities
Equity 1,812,014 1,387,972 1,569,591
Deferred tax liabilities 6,667 5,866 7,038
Provisions 46,819 20,174 26,342
Non-current lease liabilities 66,629 11,742 19,204
Other long-term liabilities 13,178 – –
Total long-term liabilities 133,293 37,782 52,584
Provisions 4,578 2,228 2,637
Current lease liabilities 21,859 12,570 12,584
Other current liabilities 252,440 164,625 218,573
Accrued expenses and deferred income 1,658,658 1,214,401 1,354,969
Total current liabilities 1,937,535 1,393,824 1,588,763
Total equity and liabilities 3,882,842 2,819,578 3,210,938
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Consolidated cash-flow statements
SEK thousand 9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
Full-year
May–Apr
2023/2024
Operating activities
Operating profit 524,069 320,385 517,810
Adjustment for non-cash items 119,011 102,747 142,681
Interest received 23,247 23,369 25,991
Interest paid -3,131 -1,083 -3,284
Income tax paid -147,445 -76,706 -118,291
Cash flow from operations before changes in working capital 515,751 368,712 564,907
Changes in working capital
Change in inventories 8,254 -23,285 -21,541
Change in receivables -126,456 -198,759 -408,649
Change in current liabilities 302,497 45,941 191,609
Cash flow from operations 700,046 192,609 326,326
Investing activities
Acquisitions of intangible assets -56,151 -55,861 -72,210
Acquisitions of tangible assets -52,253 -171,400 -178,532
Acquisition of financial assets -3,872 – –
Repayment of short-term investment – 120,000 120,000
Cash flow from investing activities -112,276 -107,261 -130,742
Financing activities
Repayment of lease liabilities -16,231 -10,268 -10,268
Redemption of shares -211,935 -211,935 -211,935
Cash flow from financing activities -228,166 -222,203 -222,203
Cash flow for the period 359,604 -136,855 -26,619
Cash and cash equivalents, opening balance 804,640 825,242 825,242
Exchange-rate difference in cash and cash equivalents -3,546 388 6,017
Cash and cash equivalents, closing balance 1,160,698 688,775 804,640
Condensed consolidated statement of changes in equity
SEK thousand 9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
Full-year
May–Apr
2023/2024
Equity at start of period 1,569,591 1,296,669 1,296,669
Comprehensive income for the period 428,177 281,695 456,387
Dividend/redemption of shares -211,935 -211,935 -211,935
Share-based payments 26,181 21,543 28,470
Equity at end of period 1,812,014 1,387,972 1,569,591
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PARENT COMPANY
Condensed Parent Company income statements
SEK thousand 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Net sales 60,251 44,736 161,574 122,651 206,184 167,261
Capitalized work for own use 573 1,509 2,817 4,109 4,244 5,536
Other operating income 26 574 59 593 72 606
Total income 60,850 46,819 164,450 127,353 210,500 173,403
Goods for resale -15,116 -4,635 -36,866 -12,937 -45,863 -21,934
Personnel costs -21,829 -18,161 -59,134 -53,486 -80,776 -75,128
Other external costs -36,115 -32,110 -102,224 -85,899 -159,800 -143,475
Depreciation/amortization -456 -468 -1,357 -1,297 -1,771 -1,711
Total operating expenses -73,516 -55,374 -199,581 -153,619 -288,210 -242,248
Operating loss -12,666 -8,555 -35,131 -26,266 -77,710 -68,845
Total financial items 16,508 6,348 104,033 112,420 120,460 128,847
Profit after financial items 3,842 -2,207 68,902 86,154 42,750 60,002
Appropriations – – – – 427,350 427,350
Profit/loss before tax 3,842 -2,207 68,902 86,154 470,100 487,352
Tax on earnings for the period 0 -231 0 -190 -81,557 -81,747
Profit/loss for the period 3,842 -2,438 68,902 85,964 388,543 405,605
Parent Company statement of comprehensive income
SEK thousand 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Profit/loss for the period 3,842 -2,438 68,902 85,964 388,543 405,605
Total comprehensive income for the
period 3,842 -2,438 68,902 85,964 388,543 405,605
Condensed Parent Company balance sheets
SEK thousand Jan 31,
2025
Jan 31,
2024
Apr 30,
2024
Assets
Intangible assets 12,000 7,756 9,183
Tangible assets 6,990 6,381 6,336
Financial assets 344,972 353,288 367,480
Total fixed assets 363,962 367,425 382,999
Accounts receivable 4,377 0 421
Receivables from Group companies 578,715 502,075 798,354
Other current assets 57,662 28,192 26,085
Cash and bank balances 946,868 544,470 683,564
Total current assets 1,587,622 1,074,737 1,508,424
Total assets 1,951,584 1,442,162 1,891,423
Equity and liabilities
Restricted equity 277,280 273,036 274,463
Unrestricted equity 662,255 456,885 781,922
Total equity 939,535 729,921 1,056,385
Provisions 4,741 2,004 2,685
Current liabilities 1,007,308 710,237 832,353
Total equity and liabilities 1,951,584 1,442,162 1,891,423
===== SIDA 20 =====
Sectra’s nine-month interim report 2024/2025
20 (30)
NOTES
Note 1 Accounting policies
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish
Securities Markets Act. The accounting policies and calculation methods applied are consistent with those described in Sectra’s 2023/2024 Annual
and Sustainability Report.
Note 2 Related-party transactions
Other than the types of transactions presented in Note 3 Employees and personnel costs in the 2023/2024 Annual Report, no significant
transactions with related parties took place in the reporting period.
Note 3 Number of shares
No. of common shares1, 2
3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
At the end of the period 192,667,489 192,667,489 192,667,489 192,667,489 192,667,489 192,667,489
Average 192,667,489 192,667,489 192,667,489 192,667,489 192,667,489 192,667,489
1 Before and after dilution.
2 Number of shares does not include the 2,453,406 (1,453,406) Class B treasury shares.
Note 4 Operating segments and sales
Operating profit/loss by business segment
SEK million 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Imaging IT Solutions 181.2 66.8 371.6 309.5 562.0 499.9
Secure Communications 134.8 9.4 170.1 21.5 208.4 59.8
Business Innovation 2.3 4.0 0.5 8.5 9.3 17.3
Other Operations -6.8 -5.9 -23.9 -19.0 -64.0 -59.1
Group eliminations 3.2 0.1 5.8 -0.1 5.8 -0.1
Total 314.7 74.4 524.1 320.4 721.5 517.8
SEK million 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
United States 240.7 185.7 601.1 561.5 865.8 826.2
Sweden 169.8 148.5 473.1 391.7 666.0 584.6
United Kingdom 146.5 132.5 446.5 413.8 610.8 578.1
Netherlands 52.4 39.7 152.9 120.4 216.5 184.0
Rest of Europe 168.4 141.1 457.0 397.4 619.1 559.5
Rest of World 70.6 46.5 195.1 180.7 245.6 231.2
Total 848.4 694.0 2,325.7 2,065.5 3,223.8 2,963.6
Sales by business segment
SEK million 3 months
Nov 2024
–Jan2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Imaging IT Solutions 719.3 601.3 1,984.9 1,810.9 2,725.6 2,551.6
Secure Communications 116.4 83.6 314.2 222.9 458.7 367.4
Business Innovation 24.0 22.9 60.4 64.1 86.2 89.9
Other Operations 59.2 44.1 160.2 121.5 203.6 164.9
Group eliminations -70.5 -57.9 -194.0 -153.9 -250.3 -210.2
Total 848.4 694.0 2,325.7 2,065.5 3,223.8 2,963.6
Sales by geographic market
===== SIDA 21 =====
Sectra’s nine-month interim report 2024/2025
21 (30)
Recurring and non-recurring external revenue by business segment
Group
SEK million 3 months1
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Recurring revenue 525.8 434.7 1,492.8 1,261.5 1,956.2 1,724.9
Of which cloud recurring revenue, CRR 162.8 103.2 407.0 283.1 520.8 396.9
Non-recurring revenue 322.6 259.3 832.9 804.0 1,267.6 1,238.7
Total 848.4 694.0 2,325.7 2,065.5 3,223.8 2,963.6
Share of recurring revenue, % 62.0 62.6 64.2 61.1 60.7 58.2
1 In the quarter, a retroactive reclassification of SEK 10 million was made from non-recurring revenue to cloud recurring revenue.
Imaging IT Solutions
SEK million 3 months1
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Recurring revenue 490.3 405.1 1,386.8 1,176.5 1,819.6 1,609.3
Of which cloud recurring revenue, CRR 158.1 97.9 392.3 270.1 500.5 378.3
Non-recurring revenue 228.3 191.6 594.7 630.8 901.9 938.0
Total 718.6 596.7 1,981.5 1,807.3 2,721.5 2,547.3
Share of recurring revenue, % 68.2 67.9 70.0 65.1 66.9 63.2
1 In the quarter, a retroactive reclassification of SEK 10 million was made from non-recurring revenue to cloud recurring revenue.
Secure Communications
SEK million 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Recurring revenue 29.9 23.5 88.5 70.4 113.0 94.9
Of which cloud recurring revenue, CRR – – – – – –
Non-recurring revenue 86.5 60.1 225.2 152.2 344.9 271.9
Total 116.4 83.6 313.7 222.6 457.9 366.8
Share of recurring revenue, % 25.7 28.1 28.2 31.6 24.7 25.9
Business Innovation
SEK million 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Recurring revenue 5.5 5.8 16.8 14.1 22.6 19.9
Of which cloud recurring revenue, CRR 4.7 5.4 14.7 13.0 20.3 18.6
Non-recurring revenue 5.5 7.8 9.5 21.0 17.2 28.7
Total 11.0 13.6 26.3 35.1 39.8 48.6
Share of recurring revenue, % 50.0 42.6 63.9 40.2 56.8 40.9
Other Operations
SEK million 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Recurring revenue 0.0 0.3 0.7 0.5 1.0 0.8
Of which cloud recurring revenue, CRR – – – – – –
Non-recurring revenue 2.4 – 3.6 – 3.6 –
Total 2.4 0.3 4.3 0.5 4.6 0.8
Share of recurring revenue, % 0.0 100.0 16.3 100.0 21.7 100.0
===== SIDA 22 =====
Sectra’s nine-month interim report 2024/2025
22 (30)
Note 5 Financial definitions and alternative performance measures
The Group applies the European Securities and Markets Authority (ESMA) Guidelines on Alternative Performance Measures. Alternative
performance measures are applied since the company believes they provide valuable supplementary information for management and
investors given that they play a central role when it comes to understanding and evaluating the Group’s operations.
Share of recurring revenue
Purpose
Shows the portion of external sales that is recurring. Recurring revenue refers to revenue from customers for the provision of a good or
service during the term of a contract, wherein the customer cannot continue to benefit from the full functionality of the good or service without
ongoing payments and the revenue stream is expected to recur for more than 12 months.
Recurring revenue mainly refers to revenue from subscription, support and maintenance agreements. The share delivered via the cloud is
reported as cloud recurring revenue (CRR). Revenue from system implementations, migration and one-time purchases of licenses are not
recognized as recurring revenue.
Calculation
Recurring revenue divided by total external sales. Refer to Note 4.
Recurring revenue churn
SEK thousand
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Recurring revenue from customer contracts that have concluded or not been
renewed
12,227 7,247
Recurring revenue 1,956,270 1,724,940
Share of recurring revenue, % 0.6 0.4
Purpose Calculation
Indicates the share of recurring revenue from customer contracts
that have concluded or not been renewed during the latest rolling
12-month period.
Recurring revenue from customer contracts that have concluded or not
been renewed divided by total recurring revenue.
Equity per share before and after dilution
Jan 31,
2025
Jan 31,
2024
Apr 30,
2024
Equity, SEK thousand 1,812,014 1,387,972 1,569,591
Number of shares before and after dilution at
the end of the period
192,667,489 192,667,489 192,667,489
Equity per share before and after dilution,
SEK
9.40
7.20
8.15
Purpose Calculation
Measures the company’s net value per share and shows the
change in shareholder capital per share over time.
Equity divided by the number of shares before and after dilution at the
end of the period.
Non-interest-bearing liabilities and interest-bearing liabilities
SEK thousand Jan 31,
2025
Jan 31,
2024
Apr 30,
2024
Non-interest-bearing liabilities 1,982,340 1,407,294 1,609,559
Interest-bearing liabilities 88,488 24,312 31,788
Total liabilities 2,070,828 1,431,606 1,641,347
Purpose Calculation
Indicates the proportion of the Company’s liabilities with and
without interest. Included in the calculation of the debt/equity ratio
and capital employed.
Non-interest-bearing liabilities refers to liabilities without interest, such as
accounts payable, advances from customers and tax liabilities. Interest-
bearing liabilities refers to liabilities with interest, such as lease liabilities.
===== SIDA 23 =====
Sectra’s nine-month interim report 2024/2025
23 (30)
Cash flow per share before and after dilution
3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Cash flow from operations, SEK thousand 580,695 233,175 700,046 192,609 833,763 326,326
Number of shares before and after dilution
at the end of the period 192,667,489 192,667,489 192,667,489 192,667,489 192,667,489 192,667,489
Cash flow per share before and after
dilution, SEK 3.01 1.21 3.63 1.00 4.33 1.69
Purpose Calculation
Shows the cash flow the company generated per share before
capital investments and financing.
Cash flow from operations divided by the number of shares before and
after dilution at the end of the period.
Ratio of contracted order bookings to net sales
SEK thousand 12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Contracted order bookings 6,702,652 6,223,476
Net sales 3,223,838 2,963,607
Ratio of contracted order bookings to net sales 2.08 2.10
Purpose Calculation
Provides an indication of demand for the company’s products and
services.
Contracted order bookings divided by net sales.
Liquidity
SEK thousand Jan 31,
2025
Jan 31,
2024
Apr 30,
2024
Current assets 3,058,174 2,155,484 2,522,148
Unutilized overdraft facilities 15,000 15,000 15,000
Current liabilities 1,937,535 1,393,824 1,588,763
Liquidity 1.6 1.6 1.6
Purpose Calculation
Shows the company’s current ability to pay. Current assets plus unutilized overdraft facility divided by
current liabilities.
Average no. of employees
Purpose Calculation
Shows full-time positions in a certain period.
Average number of full-time employees during the period.
Unadjusted exchange rates – sales
3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
Full-year
May–Apr
2023/2024
Nominal change, % 22.2 19.6 12.6 27.0 26.1
Exchange-rate effect, % -3.4 0.3 -0.1 -3.1 -3.1
Change in unadjusted exchange rates, % 18.8 19.9 12.5 23.9 23.0
Purpose Calculation
Provides an indication of changes in financial measures for
unadjusted exchange rates.
Amounts for the current year restated at last year’s average
exchange rates less last year’s amounts at last year’s average
exchange rates, divided by last year’s amounts at last year’s rates.
===== SIDA 24 =====
Sectra’s nine-month interim report 2024/2025
24 (30)
Unadjusted exchange rates – operating profit
3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
Full-year
May–Apr
2023/2024
Nominal change, % 323.0 -14.5 63.6 23.8 13.6
Exchange-rate effect, % -10.2 0.8 -0.5 -6.0 -5.6
Change in unadjusted exchange rates, % 312.8 -13.7 63.1 17.8 8.0
Purpose Calculation
Provides an indication of changes in financial measures for
unadjusted exchange rates. Disclosures and adjustments of the
effects of non-recurring transactions in operating profit and
operating margin are made separately. When applicable,
information about such transactions is provided on page 1.
Amounts for the current year restated at last year’s average exchange
rates less last year’s amounts at last year’s average exchange rates,
divided by last year’s amounts at last year’s rates.
Unadjusted exchange rates – recurring revenue
3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
Full-year
May–Apr
2023/2024
Nominal change, % 21.0 22.0 18.3 28.3 26.8
Exchange-rate effect, % -3.7 0.0 -0.2 -3.2 -3.1
Change in unadjusted exchange rates, % 17.3 22.0 18.1 25.1 23.7
Purpose Calculation
Provides an indication of changes in financial measures for
unadjusted exchange rates.
Amounts for the current year restated at last year’s average exchange
rates less last year’s amounts at last year’s average exchange rates,
divided by last year’s amounts at last year’s rates.
Order bookings – guaranteed
Purpose Calculation
Indicates future revenue in the company. The share of contracted order bookings that corresponds to what the
customer has undertaken to purchase when the contract is entered into.
Order bookings – contracted
Purpose Calculation
Indicates future revenue in the company. The value of orders received that corresponds to what the customer has
procured and intends to purchase during the term of the contract.
P/E ratio
SEK 12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Share price at end of period 254.00 219.20
Earnings per share for the rolling 12-month period 3.07 2.22
P/E ratio, multiple 82.7 98.7
Purpose Calculation
Shows how the market values the company’s profits and how long
it may take for the shareholders to get a return on an investment in
the share.
Share price at the end of the period divided by earnings per
share for the most recent rolling 12-month period before
dilution.
===== SIDA 25 =====
Sectra’s nine-month interim report 2024/2025
25 (30)
Earnings per share before and after dilution
3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Profit for the period, SEK thousand 264,010 57,820 432,169 269,937 590,620 428,388
Average number of shares before and after
dilution 192,667,489 192,667,489 192,667,489 192,667,489 192,667,489 192,667,489
Earnings per share before and after
dilution, SEK 1.37 0.30
2.24
1.40
3.07
2.22
Purpose Calculation
Shows each share’s participation in the company’s earnings during
the reporting period.
Profit/loss after tax divided by the average number of shares before
or after dilution. This performance measure is defined in accordance with
IFRS.
Return on equity
SEK thousand 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Profit for the period 264,010 57,820 432,169 269,937 590,620 428,388
Equity at start of period 1,532,235 1,341,354 1,569,591 1,296,669 1,387,972 1,296,669
Equity at end of period 1,812,014 1,387,972 1,812,014 1,387,972 1,812,014 1,569,591
Average equity 1,672,125 1,364,663 1,690,803 1,342,321 1,599,993 1,433,130
Return on equity, % 15.8 4.2 25.6 20.1 36.9 29.9
Purpose Calculation
Shows the return on capital attributable to the Parent Company
owners.
Profit for the period divided by average equity.
Return on capital employed (ROCE)
SEK thousand 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Profit after financial items 332,506 72,880 544,293 340,695 756,373 552,774
Financial expenses -1,342 -191 -3,131 -1,083 -5,332 -3,284
Average capital employed 1,762,323 1,391,162 1,750,940 1,395,608 1,656,393 1,490,155
Return on capital employed, % 18.9 5.3 31.3 24.5 46.0 37.3
Purpose Calculation
Shows profitability based on how much capital is used in the
operations.
Profit after financial items plus financial expenses divided by
average capital employed.
Operating margin
SEK thousand 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Operating profit 314,688 74,359 524,069 320,385 721,494 517,810
Net sales 848,400 694,041 2,325,736 2,065,505 3,223,838 2,963,607
Operating margin, % 37.1 10.7 22.5 15.5 22.4 17.5
Purpose Calculation
Measures operational profitability. This measure is used for the
purpose of management by objectives in the operations.
Disclosures and adjustments of the effects of non-recurring
transactions in operating profit and operating margin are made
separately. When applicable, information about such transactions
is provided on page 1.
Operating profit divided by net sales.
===== SIDA 26 =====
Sectra’s nine-month interim report 2024/2025
26 (30)
Operating profit per share
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Operating profit, SEK thousand 721,494 517,810
Number of shares before dilution 192,667,489 192,667,489
Operating profit per share, SEK 3.74 2.69
Purpose Calculation
Shows earnings per share before interest and taxes. Disclosures
and adjustments of the effects of non-recurring transactions in
operating profit are made separately. When applicable, information
about such transactions is provided on page 1.
Operating profit divided by the number of shares before
dilution on the balance-sheet date.
Debt/equity ratio
SEK thousand Jan 31,
2025
Jan 31,
2024
Apr 30,
2024
Interest-bearing liabilities 88,488 24,312 31,788
Equity 1,812,014 1,387,972 1,569,591
Debt/equity ratio 0.05 0.02 0.02
Purpose Calculation
Shows to what extent the operations are financed by loans and
describes the company’s financial risk.
Interest-bearing liabilities divided by equity.
Equity/assets ratio
SEK thousand Jan 31,
2025
Jan 31,
2024
Apr 30,
2024
Equity 1,812,014 1,387,972 1,569,591
Total assets 3,882,842 2,819,578 3,210,938
Equity/assets ratio, % 46.7 49.2 48.9
Purpose Calculation
Shows the portion of assets financed with equity. This measure is
used for the purpose of management by objectives in the
operations.
Equity divided by total assets on the balance-sheet date.
Capital employed
SEK thousand Jan 31,
2025
Jan 31,
2024
Apr 30,
2024
Total assets 3,882,842 2,819,578 3,210,938
Non-interest-bearing liabilities 1,982,340 1,407,294 1,609,559
Capital employed 1,900,502 1,412,284 1,601,379
Purpose Calculation
Shows the portion of the company’s assets that has been
borrowed from, for example, the company’s owners or external
lenders, and shows the company’s profitability in relation to
externally financed capital and equity.
Total assets reduced by non-interest-bearing liabilities.
===== SIDA 27 =====
Sectra’s nine-month interim report 2024/2025
27 (30)
Growth in operating profit per share over a five-year period
SEK 12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Operating profit per share before dilution 3.74 2.69
Operating profit per share before dilution five years earlier 1.44 1.23
Growth in operating profit per share before dilution over a
five-year period, % 159.7 118.8
Purpose Calculation
Shows the growth of the operations over a five-year period. This
measure is used for the purpose of management by objectives in
the operations. Disclosures and adjustments of the effects of non-
recurring transactions in operating profit and operating margin are
made separately. When applicable, information about such
transactions is provided on page 1.
Operating profit per share on the balance-sheet date less operating
profit per share on the balance-sheet date five years earlier divided by
operating profit per share on the balance-sheet date five years earlier.
Profit margin
SEK thousand 3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
12 months
Feb 2024
–Jan 2025
Full-year
May–Apr
2023/2024
Profit after financial items 332,506 72,880 544,293 340,695 756,373 552,774
Net sales 848,400 694,041 2,325,736 2,065,505 3,223,838 2,963,607
Operating margin, % 39.2 10.5 23.4 16.5 23.5 18.7
Purpose Calculation
Shows a comparison of profitability regardless of corporate tax
rate.
Profit after financial items divided by net sales.
KEY FIGURES AND OTHER INFORMATION
Key figures
9 months
Jan 31,
2025 3
9 months
Jan 31,
2024
12 months
Jan 31,
2025
Full-year
Apr 30,
2024
Contracted order bookings, SEK million 5,805.7 5,326.5 6,702.7 6,223.5
of which guaranteed order bookings, SEK million 5,270.9 2,457.0 6,033.3 3,219.4
Operating margin, % 22.5 15.5 22.4 17.5
Profit margin, % 23.4 16.5 23.5 18.7
Average no. of employees 1,234 1,130 1,218 1,140
Cash flow per share, SEK 1, 2 3.63 1.00 4.33 1.69
P/E ratio, multiple n/a n/a 82.7 98.7
Share price at end of period, SEK 254.00 195.14 254.00 219.20
Return on equity, % 25.6 20.1 36.9 29.9
Return on capital employed, % 31.3 24.5 46.0 37.3
Equity/assets ratio, % 46.7 49.2 46.7 48.9
Liquidity ratio, multiple 1.6 1.6 1.6 1.6
Equity per share, SEK 2 9.40 7.20 9.40 8.15
1 Cash flow from operations. 2 Before and after dilution. 3 The outcomes include a positive effect from a patent settlement, a non-recurring transaction. See page 1.
===== SIDA 28 =====
Sectra’s nine-month interim report 2024/2025
28 (30)
Condensed consolidated income statements by quarter
SEK million 2024/2025 2023/2024 2022/2023
Q3 1 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Net sales 848.4 753.5 723.8 898.1 694.0 787.7 583.7 724.7 580.3 561.7 484.1
Capitalized work for own use 22.9 19.4 12.9 16.3 19.3 17.9 18.0 20.6 14.7 11.5 9.0
Other operating income 202.6 6.5 2.7 1.3 0.6 2.2 1.3 0.5 0.5 0.4 0.1
Operating expenses -729.9 -642.5 -613.5 -687.0 -614.9 -607.5 -509.2 -524.7 -485.2 -443.9 -406.6
Depreciation/amortization and
impairment -29.3 -27.3 -26.1 -31.3 -24.7 -23.6 -24.5 -24.3 -23.3 -22.1 -22.2
Operating profit 314.7 109.6 99.8 197.4 74.4 176.7 69.3 196.8 87.0 107.6 64.4
Total financial items 17.8 0.9 1.5 14.7 -1.5 13.6 8.2 5.1 4.1 10.7 3.8
Profit after financial items 332.5 110.5 101.3 212.1 72.9 190.3 77.5 201.9 91.1 118.3 68.2
Tax on earnings for the period -68.5 -22.7 -20.9 -53.6 -15.1 -39.7 -16.0 -47.3 -18.8 -24.4 -14.0
Profit for the period 264.0 87.8 80.4 158.5 57.8 150.6 61.6 154.6 72.3 93.9 54.1
1 The outcomes include positive effects from a patent settlement, a non-recurring transaction. See page 1.
Key figures by quarter
2024/2025 2023/2024 2022/2023
Q3 2 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Contracted order bookings, SEK
million 967.6 4,223.1 615.0 896.9 1,853.6 503.0 2,970.0 1,186.9 549.2 664.2 2,235.4
of which guaranteed order
bookings 710.8 4,017.0 543.1 762.3 1,652.5 460.1 344.4 811.6 484.0 605.6 705.3
Recurring revenue, SEK million 525.8 484.7 482.3 463.5 434.7 429.6 397.2 376.6 356.4 316.4 310.4
of which cloud services (CRR) 162.8 121.3 122.8 113.8 103.2 93.4 86.4 72.9 72.1 59.6 50.0
Operating margin, % 37.1 14.5 13.8 22.0 10.7 22.4 11.9 27.2 15.0 19.2 13.3
Earnings per share, SEK 1 1.37 0.46 0.42 0.82 0.30 0.78 0.32 0.80 0.38 0.49 0.28
Cash flow per share, SEK 1 3.01 0.91 -0.29 0.69 1.21 0.30 -0.51 1.98 0.43 0.20 -0.33
Return on equity, % 15.8 5.5 5.0 10.7 4.2 11.0 4.6 12.7 6.5 8.5 4.9
Return on capital employed, % 18.9 6.7 6.2 14.2 5.3 13.5 5.5 15.6 7.8 10.2 5.8
Equity/assets ratio, % 46.7 48.0 52.2 48.9 49.2 49.8 50.8 47.4 50.4 52.3 54.9
Equity per share, SEK 1 9.40 7.95 8.59 8.15 7.20 6.96 7.20 6.73 5.94 5.54 5.95
Share price at end of period, SEK 254.0 283.0 243.4 219.2 195.1 120.6 168.6 161.7 147.4 146.4 185.9
1 Before and after dilution. 2 The outcomes include positive effects from a patent settlement, a non-recurring transaction. See page 1.
Five-year summary
2023/2024 2022/2023 2021/2022 2020/2021 2019/2020
Contracted order bookings, SEK million 6,223.5 4,635.7 2,320.2 2,651.6 1,816.0
Net sales, SEK million 2,963.6 2,350.8 1,949.1 1,632.4 1,661.1
Operating profit, SEK million 517.8 455.7 383.4 350.1 295.3
Profit after financial items, SEK million 552.8 479.4 394.5 348.2 303.0
Profit for the period, SEK million 428.4 375.0 314.8 275.5 237.4
Operating margin, % 17.5 19.4 19.7 21.4 17.8
Profit margin, % 18.7 20.4 20.2 21.3 18.2
Earnings per share before dilution, SEK 1 2.22 1.95 1.63 1.43 1.24
Earnings per share after dilution, SEK 1 2.22 1.95 1.63 1.43 1.23
Redemption program per share/dividend, SEK 1 1.10 1.10 1.00 0.90 0.90
Share price at end of year, SEK 1 219.20 161.70 124.80 121.00 84.00
P/E ratio, multiple 98.7 82.9 76.6 84.6 68.0
Return on equity, % 29.9 31.5 31.9 32.2 30.7
Return on capital employed, % 37.3 38.2 37.5 37.4 36.8
Equity per share before dilution, SEK 1 8.15 6.73 5.61 4.65 4.24
Equity per share after dilution, SEK 1 8.15 6.73 5.61 4.65 4.24
Equity/assets ratio, % 48.9 47.4 49.3 54.2 54.1
1 Comparative figures per share have been restated due to the 5:1 share split that Sectra carried out in the second quarter of 21/22.
===== SIDA 29 =====
Sectra’s nine-month interim report 2024/2025
29 (30)
Exchange rates
Currency Average rates in SEK Closing rates in SEK
3 months
Nov 2024
–Jan 2025
3 months
Nov 2023
–Jan 2024
Δ
%
9 months
May 2024
–Jan 2025
9 months
May 2023
–Jan 2024
Δ
% Jan 31,
2025
Jan 31,
2024
Δ
%
US dollar, 1 USD 10.92 10.20 7.1 10.60 10.58 0.2 10.98 10.34 6.2
Euro, 1 EUR 11.42 11.16 2.3 11.39 11.48 -0.8 11.41 11.19 2.0
British pound, 1 GBP 13.73 12.98 5.8 13.61 13.32 2.2 13.66 13.13 4.0
GLOSSARY
DICOM
A standard communication protocol used to capture, store and
transfer medical images and related data.
DNA sequencing
A process for determining genetic material, DNA, in a sample.
Genomics
The study of genetic material, meaning an organism’s DNA. In
medicine, a patient’s genetic material is studied to increase
understanding of the causes of disease. In cancer diseases, for
example, a tumor’s mutations are studied in DNA. The genetic
information plays an important role in diagnosing cancer and
customizing treatment, known as precision medicine.
Cardiology/cardiovascular diseases
The field of medicine dealing with the functions and diseases of the
heart.
Critical infrastructure
Basic infrastructure that is essential for the functioning of society,
such as roads, bridges and electricity and water supply.
Encryption
Equipment that uses mathematical manipulations (algorithms and
keys) to encrypt information, so that it can be interpreted or read
only by the intended recipient. To read encrypted information, the
recipient must have the correct key and algorithm.
The cloud/cloud solutions
From the term cloud computing, meaning delivering services and
sharing IT infrastructure over the internet.
Ophthalmology
A specialist medical area for the diagnosis and treatment of eye
disorders.
Orthopaedics
A surgical specialty for disorders affecting the musculoskeletal
system.
Pathology/histopathology/microscopy
A specialized medical area that uses tissues and body fluids for
diagnostic purposes.
Precision medicine
Providing patient care that is highly adapted to individual
conditions. Advanced diagnostic analyses are a cornerstone of
precision medicine.
Radiology
A health science discipline and medical specialty that uses
technologies for imaging the human body, such as X-ray,
magnetic resonance imaging (MRI) and ultrasound.
Sectra One/Sectra One Cloud
A subscription for Sectra’s enterprise imaging solution. Under
the new model, customers pay a more evenly distributed
subscription fee every year instead of paying a higher license
fee for software at the start of the contract and a lower rolling
service fee. The fee is determined based on the functionality
used and the number of different services utilized. When Sectra
One is sold as fully cloud-based services, it is referred to as
Sectra One Cloud.
High assurance/High assurance products
Cryptographic methods and other measures designed to prevent
unauthorized parties from accessing or influencing information in
telecom and IT systems. The high assurance products that
Sectra provides are approved by one or more nations and, for
certain products, by the EU and NATO.
===== SIDA 30 =====
Sectra’s nine-month interim report 2024/2025
30 (30)
0
,
ABOUT SECTRA
Vision
To contribute to a healthier and safer society.
Mission statements
To increase the effectiveness of healthcare, while maintaining or increasing
the quality of care.
To strengthen the stability and efficiency of society’s most important
functions through solutions for critical IT security.
Operating areas/business models
Imaging IT Solutions helps hospitals across the world to become more
efficient, enabling them to care for more patients and save more lives.
Increased use of medical images and aging populations that are living longer
pose huge challenges to healthcare. Sectra’s IT solutions and services for
medical diagnostic imaging enable greater efficiency and contribute to
healthcare advancements. Sectra has exceeded 2,500 installations of
medical IT systems, and customers include some of the largest healthcare
providers in the world.
Secure Communications helps society’s critical functions, government
officials and diplomats to use modern technology to exchange information
securely, thereby contributing to a stable and secure society. Sectra’s
solutions and services increase cybersecurity by protecting some of
society’s most sensitive information and communications. Several of the
business area’s products are approved by the EU, NATO, and national
security authorities.
Business Innovation gathers smaller activities that could eventually lead
to major growth in Sectra’s main areas or related niches.
Group-wide strategies for value creation
and sustainable business development
Customer value is the top priority
Customers and customer satisfaction are always assigned top priority to
enable long-term growth. Close relationships with demanding customers
ensure that Sectra’s solutions meet market demands for quality,
functionality and usability.
A motivating corporate culture
A corporate culture that motivates and inspires the company’s employees to
solve customer problems and constantly drive improvement. All so we can
meet—and in many cases exceed—customer expectations.
Constant innovation
Close cooperation with customers, universities and industrial partners in
order to identify needs and ideas, combined with a corporate culture where
management encourages the employees to test out new ideas and projects.
Geographic expansion
International expansion mainly in areas and regions where Sectra holds an
established position. Expansion is primarily to be achieved through organic
growth, in certain cases supplemented by acquisitions that strengthen the
Group’s organic growth.
For more information, visit https://investor.sectra.com
7 good reasons to invest in Sectra
International niche markets with strong growth
IT for healthcare and cybersecurity for critical social
functions are rapidly changing markets that society
needs to invest in. This creates major growth
opportunities for companies such as Sectra.
Stability, profitability and long-term growth
Sectra has an over 45-year history of growth and
profitability. Over 50% of the company’s sales comprise
recurring revenue from long-term customer contracts.
Customer-focused corporate culture
A strong corporate culture clearly focused on customer
value and employees who are passionate about making a
difference lead to satisfied customers. To safeguard our
corporate culture, growth is primarily organic.
Strong brand with multinational reach
Sectra is an established brand in niche areas where trust
and stable products are highly important success factors.
We have a multinational reach, with thousands of
customers worldwide.
Innovation
By continuously investing in new and enhanced products
and services, as well as how they are packaged and
delivered, we create value for our customers. We also
have a self-financed portfolio of research and business
projects with the potential to add significant value in the
future.
Sustainable business model
Contributing to healthier and safer societies is the
foundation of Sectra’s operations and business model.
Helping our customers improve the efficiency and
quality of patient care and increase cybersecurity in
critical social functions is our most significant
contribution to a sustainable society.
Long-standing owners and dedicated
management
The principal owners, who have been part of the
company since the 1980s, have firm dedication to the
long-term development of the company, and all
members of Group Management are shareholders.