Detection Technology (DETEC) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were €22.2m, down 2.0% year-over-year, with EBITA at €1.4m and a 6.3% margin, mainly due to weaker security demand and exchange rate fluctuations.

• Medical segment sales grew 13.7% year-over-year, led by recovery in China as demand backlog eased.

• Security sales dropped 20% due to regulatory delays in Europe and weak demand in the Americas.

• Industrial sales rose 4%, driven by strong TFT flat panel detector demand.

• Global market instability, exchange rate changes, and new tariffs increased uncertainty.

Financial highlights

• Net sales: €22.2m (down 2.0% year-over-year); EBITA: €1.4m (margin 6.3%, down from 10.0%).

• Earnings per share: €0.05 (down from €0.11 year-over-year).

• Cash flow from operations: €1.4m (down from €3.0m year-over-year).

• R&D costs: €2.6m, 11.8% of net sales.

• Net interest-bearing debt: €-28.5m (net cash position).

Outlook and guidance

• Net sales expected to remain stable year-over-year in Q2 and Q3 2025, revising earlier double-digit growth guidance.

• Industrial and medical segments expected to grow in Q2, security to decline; APAC and Americas to grow, EMEIA to decline.

• Medium-term targets: annual sales growth >10%, EBITA margin 15%, dividend payout 30–60%.