INVISIO (IVSO) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw strong underlying order intake and a significant increase in the order book, but revenue and profitability were negatively impacted by delivery delays and increased product complexity.

• Major milestones included a 10-year framework agreement with the US Coast Guard (up to SEK 930 million) and a 5-year agreement with the Netherlands Ministry of Defence (up to SEK 365 million).

• The quarter featured the largest number of new product launches in company history, including the T30 headset and H-Series data/smart hubs, expected to drive growth from 2026.

Financial highlights

• Q3 2025 revenue was SEK 291.3 million, down 17% year-over-year, mainly due to delivery delays; order intake reached SEK 480 million, and the order book strengthened to SEK 887 million.

• Gross margin was 57% in Q3, impacted by SEK 4 million in tariffs and currency effects; rolling 12-month gross margin averaged close to 60% excluding third-party radio deliveries.

• Operating margin dropped to -1.1% in Q3 (16.3% last year), with a rolling 12-month margin of 17%.

• Cash flow from operating activities was SEK 105.8 million, down from SEK 152.6 million in the comparable period.

Outlook and guidance

• Majority of delayed orders are expected to be delivered in Q4 2025 and Q1 2026, with Q4 anticipated to be stronger than Q3.

• Market activity is expected to remain high for several years, driven by modernization and increased defense budgets, especially in Europe and the US.

• New products and recent investments are expected to contribute significantly to growth starting in 2026.

• Long-term EBIT margin target raised to 20%, but current rolling 12-month margin is 17%; Q4 performance will determine if the annual target is met.