Clavister (CLAV) Q2 2025 earnings summary

Executive summary

• Order intake increased 52% year-over-year, with net sales up 22% and ARR up 9%, reflecting robust demand across all business lines and no reliance on single large orders.

• Major defence order of 68 MSEK from BAE Systems and a new partnership agreement with Saab post-quarter, expanding market reach and technological leadership.

• Strong demand for European cybersecurity solutions amid geopolitical uncertainty, with growing engagement from partners and customers in critical sectors like energy and defence.

• Innovation milestones include a US patent for PASAD AI technology and launch of the Cyber Armour RSG-200 for tactical deployments.

• Order backlog increased to SEK 375 million, now extending into 2029, providing strong revenue visibility.

Financial highlights

• Net sales reached SEK 55 million (54.8 MSEK), up 22% year-over-year; ARR at 136.6 MSEK, up 9.3%.

• Gross margin reached 81.1%, above the 80% target, driven by a favorable sales mix with significant software component.

• Adjusted EBITDA margin rose to 16.3% (from 12.3%), with adjusted EBITDA up 60%.

• Net result for the quarter was -15.9 MSEK, with EPS at -0.06 SEK.

• Financial net debt reduced to -88.4 MSEK from -190.4 MSEK year-over-year.

Outlook and guidance

• Targeting at least 20% CAGR sales growth for 2025–2027, with ambition for 2025: EBITDA margin of at least 20%, positive EBIT, and positive operational cash flow.

• Strong order backlog and recurring civilian revenues provide a solid foundation for future growth.

• Investments in sales, marketing, and technology are prioritized to capture market opportunities while balancing profitability.