Clavister (CLAV) Q3 2025 earnings summary

Executive summary

• Achieved record profitability with a 26% EBITDA margin, positive EBIT and net result, and a strong gross margin of 80%.

• Net sales grew by 15% year-over-year in Q3 2025, with ARR up 9% and 16 consecutive quarters of growth.

• Defence sector demand remains robust, highlighted by a 68 MSEK order from BAE Systems and a 98.5% year-over-year increase in defence net sales.

• Expanded Arrow Electronics distribution agreement to 11 additional European countries, enhancing market reach.

• Strong momentum in both civilian and defense sectors, with growing demand for European cybersecurity solutions.

Financial highlights

• Q3 2025 net sales: 50.5 MSEK (up 15.3% year-over-year); gross profit: 41.0 MSEK (up 11.8%); adjusted EBITDA margin: 25.6%.

• Order intake was SEK 31 million (31.4 MSEK), a 9% decline year-over-year due to timing effects in defense orders.

• Net result for Q3: 0.3 MSEK, a turnaround from -5.1 MSEK in Q3 2024.

• Cash position at quarter-end was SEK 40 million, with operations self-sustained at the operational level.

• OpEx to sales ratio dropped to 72%, the lowest in company history, reflecting improved operating leverage.

Outlook and guidance

• Full-year 2025 growth and EBIT targets withdrawn due to supply chain delays in military hardware, but underlying business remains robust.

• Long-term ambition remains for industry-leading profitability and free cash flow; average annual sales growth target of at least 20% (CAGR) for 2025–2027.

• New financial targets for 2026 and beyond will be set after fiscal year-end, once uncertainties subside.

• EBITDA margin target range is 35%-40% in the medium term, balancing profitability and growth investments.