TCECUR Sweden (TCC) investor relations material

Executive summary

• Order backlog increased 23% year-over-year to 239.0 MSEK, with recurring revenues rising to 73.2 MSEK, representing 13.5% of the backlog.

• Net sales declined 5.2% year-over-year to 129.1 MSEK, mainly due to delayed project starts in Secure Communication, partially offset by growth in Security Systems.

• EBITA was 4.6 MSEK (3.6% margin), slightly down from 5.0 MSEK (3.7%) last year; net income improved to 2.0 MSEK from 1.0 MSEK.

• Operational cash flow improved to 5.4 MSEK from 3.9 MSEK, and net debt was reduced to 16.4 MSEK (from 29.3 MSEK), with net debt/adjusted EBITDA at 1.0x.

• Cost adaptation and operational efficiency measures continued, with positive effects on cash flow and debt reduction.

Financial highlights

• Recurring revenues increased to 73.2 MSEK (from 67.7 MSEK), now 13.5% of total.

• EBITDA was 10.0 MSEK (7.7% margin), down from 10.6 MSEK (7.8%).

• Earnings per share rose to SEK 0.20 from SEK 0.11 year-over-year.

• Liquidity at quarter-end was 14.9 MSEK, with no utilization of the 20.0 MSEK credit facility.

Outlook and guidance

• Market conditions remain uncertain, with geopolitical tensions increasing demand for security and critical infrastructure protection.

• Private sector investment decisions are cautious, leading to longer lead times and quarterly variation.

• Focus remains on profitability, cost control, risk reduction, and achieving financial targets.