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Stratec (SBS) investor relations material
Stratec Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Sales grew 2.5% year-over-year at constant currency to EUR 175.6 million, despite supply chain disruptions, volatile customer orders, and trade policy tensions.
Margin development was negatively impacted by unfavorable product mix and foreign exchange headwinds, though efficiency measures are beginning to support stabilization.
Market stabilization observed, with end-customer demand and testing volumes recovering, especially in immunoassay and complex sample prep, though molecular test volumes remain below pre-pandemic levels.
New partnerships and development activities increased, with double-digit growth in Development and Services sales and a major new program in molecular diagnostics.
Efficiency measures and a focus on high-margin development sales are expected to drive improved earnings in Q4 2025.
Financial highlights
Adjusted EBIT margin for the first nine months was 7.3%, down from 8.8% year-over-year, mainly due to lower gross margin and product mix.
Adjusted net income decreased by 15.8% year-over-year to EUR 7.1 million; adjusted EPS was EUR 0.58.
Adjusted EBITDA for 9M 2025 was EUR 24.2 million, down 9.0% year-over-year; adjusted EBITDA margin was 13.8%, down 160 bps.
Gross margin declined from 27.4% to 25.8% year-over-year, impacted by product mix and FX rates.
Free cash flow was negative at -EUR 14.8 million, with cash at period end at EUR 22.4 million, down from EUR 47.2 million at the start of the year.
Outlook and guidance
Full-year 2025 sales expected to be flat year-over-year at constant currency, with adjusted EBIT margin forecasted at 10%-12%, likely at the lower end.
Q4 earnings expected to improve significantly due to a better regional mix, higher-margin development and service sales, and lower tax rate.
Investment in tangible and intangible assets for the year expected to be slightly below the 8%-10% of sales range.
Cost discipline, efficiency measures, and inventory reduction remain focus areas, alongside growth investments and M&A pipeline management.
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